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Starting and operating your own home based business is the ultimate tax shelter.
Although this article has been written from a Canadian income tax perspective, the principles should be practical in other tax jurisdictions.
1. Non-Deductible Personal Living Expenses
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One way to maximize your business profits is by reducing your taxes. Frequently, income and other taxes could be lowered significantly if only the taxpayer were willing to plan ahead. By taking some simple steps to rearrange your affairs, you could save a fortune!
1. Are...
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When Richard Hatch bared it all on "Survivor," he took home a million bucks. But when he was less revealing about his windfall with the Internal Revenue Service, he wound up facing possible prison time as a tax evader.
Steve Kassel, a former IRS revenue officer sees such...
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It is the most dreaded letter a taxpayer can receive.
Dear Taxpayer,
Some of the information that you provided to us does not agree with the information we received from other sources. -- The Internal Revenue Service
You've just joined an elite club, one where the...
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"Don't draw any more attention to your return than you need to," says Robert G. Nath, author of The Unofficial Guide to Dealing with the IRS. "Simple, plain vanilla returns are fairly safe."
That's because most returns chosen for audit are flagged by an IRS computer program...
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If your return is selected for a closer look, don't panic and don't ignore IRS inquiries.
If you're in the audit majority, you'll fall into the least intrusive category, the correspondence audit. This is the easiest process for both the taxpayer and the IRS. In this case,...
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