What's the difference between the legal and tax liabilities of sole proprietorship, S-corps and LLCs? How about the number of IRAs the IRS allows? Or the restrictions of the First-Time Home Buyer Credit in the stimulus bill? Accountant Joan Davion and CPA Shanda Gottlieb laid out tax basics, tips, common mistakes and more during the Morning Essentials: Tax Talk seminar hosted by the Northern Virginia Black Chamber of Commerce.
Ms. Davion stressed the importance of communicating with your accountant, and discussed a business associate's misfiling predicament. Because he didn't understand mileage and car deductions -- and didn't share his process for determining those deductions with his tax preparer - the information was incorrect. "He's now in a lot of trouble and going through a painful process," Ms. Davion said.
"Don't be afraid of an audit," encouraged Ms. Gottlieb. You never know what it is that the IRS is focused on. When one of her clients was audited, she was able to resolve the matter by refiling after discovering the previous tax preparer had made several of errors.
Take home points? Review your taxes - even if you hire a preparer. Organize your files so you're not rushing at tax time. And, use the IRS as a resource - call or go to their website if you have questions.
Gaea Honeycutt
blog@weirdingword.com
Weirding Word®, a division of G.L. Honeycutt Consulting, LLC, is a virtual publication department that provides editing, freelance writing, and publication and web design services.
Copyright 2007-2009 Gaea L. Honeycutt. All rights reserved.
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