INPORTANT FYI CONCERNING TAX AUDITS

[Fkatz]

September 29th, 2006
Here is a notice of what the Small Business and Self employed division of the internal Revenue plans on doing

SB/SE Division Plans More Audits To Reduce Tax Gap

The IRS Small Business/Self Employed Division says the division plans to perform more audits to reduce an almost $300 billion annual tax gap the division faces. The SB/SE Division handles the tax returns of about 45 million individuals and businesses, about one-third of the taxpayer base.
You are talking about 15 million return that will be audited this year.

What they are looking for mainly is any Corporation or "S" Corps. partnerships that do not take any Wages, or income showing on .
Corp 1120, line 12
"S" 1120 line 7
Part 1065-K1
Plus the full audit of Sch C. for Sole propreitors,
Per diem, Showers, Laundry, and repairs (over $8000 mainly.
make sure if you have any major repairs, Engine or trans overhauls they cannot be deducted as a repair item, it must be depreciated over 5 years.

Frank
Frank's tAx & Business Service
226 S. Cherokee St
Kings Mountain, NC 28086
704-739-4039

 

[tr]

Hey Frank, thanks for the help over the years. Two questions for the last time as I have "hung it up", what are the mileage rates for 2006 and what are the perdiem rates for US> Tks, have a grate one and once again thanks again for all the help over the years. TR

 

[Fkatz]

TR,

The mileage rate for 2006 is $.445 per mile, I suggest that you Do not take all your mileage, Take off 15-20% for personal use, unless you have another vehicle to use.

The Per Diem for 2006 is $52.00 US and $58.00 Canada, it must be multiplied by 75% inorder to get the correct dedcution.

Sorry to hear you Hanging it UP,

Frank