document.write('<p><b><font class="heading">Are you a Tax Time Bomb?</font><br><font class="text"><i>How To Keep The IRS Off Your Back</');
document.write('i></b></p><p>It happens all the time. I am on an airplane. I strike up a conversation with the woman next to me. I tel');
document.write('l her I\'m an accountant. It turns out she is in network marketing. Although my newfound acquaintance has only been in th');
document.write('e business for a couple of years, she is already making a substantial six-figure income - more money than she has ever m');
document.write('ade before.</p><p>She steers the conversation in the all-too-familiar direction, and starts peppering me with question');
document.write('s: &quot;How can I save on taxes? Should I put my money in a trust? Take it off shore? Set up a pension plan? Can I writ');
document.write('e off my motorboat?&quot;</p><p>Before answering these questions, I have a few of my own for her. &quot;Are you keepin');
document.write('g good records? Do you have an accountant or other tax professional helping you? Have you ever done a profit-and loss-st');
document.write('atement so you know where you stand? Are you making sufficient estimated tax payments? Are you current with your yearly ');
document.write('tax filings?&quot;</p><p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&quot;Er,&quot; a long pause ensu');
document.write('es. &quot;Well, no...&quot;</p><p>At this point, I sit back and give her a little room. My fellow passenger is a tax b');
document.write('omb, and I just heard the ticking.</p><p>It is my experience that many people are in a situation like this woman\'s; th');
document.write('ey are making a comfortable income and still leaving themselves vulnerable, if the IRS were to pay a visit.&nbsp;</p><');
document.write('p> Could you be next?</p><p>Think of this article as the instructions for disarming a tax time-bomb, and making sure t');
document.write('hat even a full IRS audit would be a less painful experience.</p><p>Let me start with the Six Commandments for keeping');
document.write(' the IRS off your back:</p><p><b>1) Hire an Accountant.</b></p><p>I know what you are thinking as you read this - &q');
document.write('uot;Why do I need to pay an accountant, when I can buy a tax software program for $49?&quot; For starters, an accountant');
document.write(' can help you get organized. He can advise you on the best way to keep records. An accountant can help you prepare profi');
document.write('t-and-loss statements so that you can see how much money you are making and where your money is going, and help anticipa');
document.write('te how much tax you may owe. He can advise you as to what is (or is not) deductible for tax purposes, as well as the bes');
document.write('t way to substantiate and increase your legitimate deductible expenditures. Most importantly, an accountant can keep you');
document.write(' in tax filing compliance, the one area where most of my clients get into trouble, just by missing deadlines.</p><p>&n');
document.write('bsp;<br><b>2) Keep good records.</b></p><p>Without good records, you have no means to justify your legitimate deductio');
document.write('ns under the tax laws. Remember: in an audit, the burden of proof is on you to substantiate your legitimate tax deductio');
document.write('ns. Keep a daily calendar of your activities and receipts for all your business expenses, organized monthly. I know this');
document.write(' sounds like it\'s more trouble than it\'s worth. Let me assure you that if you follow my advice it will be well worth the');
document.write(' effort for two reasons:</p><ol><li><p>First, it will make it that much easier for your tax preparer to go through you');
document.write('r records.</p></li><li><p>More importantly, it will allow you to defend yourself should the IRS come knocking on your ');
document.write('door. I have seen, with my own two eyes, what happens in audit situations where clients\' records are sparse or non-exist');
document.write('ent. It isn\'t a pretty sight.</p></li></ol><p>&nbsp;<br><b>3) Never Ignore Big brother.</b></p><p>Upon receiving a l');
document.write('etter from the IRS, run (do not walk) to a tax professional. IRS letters run the gamut from the fairly benign inquiry to');
document.write(' a serious problem. (As a quick rule of thumb, a certified letter usually indicates a serious problem.) For example, it\'');
document.write('s common for the IRS to lose a tax return or a payment. If you can quickly satisfy the IRS by sending them a copy, why n');
document.write('ot take care of it right away, before it becomes serious?</p><p>Another possible reason for IRS correspondence may be ');
document.write('that the IRS has some questions regarding a tax return you filed. Let me assure you from experience that ignoring this t');
document.write('ype of letter will not make the problem go away. Instead, the IRS will proceed without you, which could eventually requi');
document.write('re you to hire someone like me to fight the government in court, or in collection.</p><p>&nbsp;<br><b>4) If it Sounds ');
document.write('Too Good to Be True, It Probably Is.</b></p><p>Many clients ask me about putting their money in unincorporated busines');
document.write('s organizations, or offshore, or in gold bullion in the cellar, with the idea that then they won\'t have to pay taxes. Wh');
document.write('en you hear something like this, there is a good chance the IRS already knows about this tax dodge. My advice is to seek');
document.write(' a reputable third-party opinion. I know this will cost some money, but it could save you thousands of dollars in aggrav');
document.write('ation later. </p><p>&nbsp;<br><b>5) File Your Tax Returns in a Timely Manner.</b></p><p>The easiest way to get into ');
document.write('trouble with the IRS is not to file your tax returns on time. Very few people who voluntarily file their tax returns get');
document.write(' audited. On the other hand, my experience is that people who only file the tax returns after the IRS inquiry are more l');
document.write('ikely to be scrutinized. I cannot think of a single good reason to make yourself visible to IRS radar.</p><p>&nbsp;<br');
document.write('><b>6) Don\'t Make It Up.</b></p><p>People tend to panic at tax time when they discover that a huge tax bill awaits. It');
document.write(' is very tempting to start making up numbers. Resist this temptation. While it is never pleasant to owe the IRS money, s');
document.write('ubmitting an obviously false return could land you in jail. A corollary is that you should also resist the temptation to');
document.write(' make up false receipts for the IRS to look at if you are audited. I had one client get criminally charged for doing jus');
document.write('t this - so, to save $12,000 in taxes, he ended up paying $25,000 in legal fees!</p><p>Now that I have your attention ');
document.write('(I hope), here are some basic tips on how to save money.</p><p>Everyone\'s tax situation is unique and here are a few h');
document.write('ints:</p><ol><li><p>Keep good records of all business expenses, substantiating their business purpose. Nine out of ten');
document.write(' tax problems arise from the failure to take this simple, if occasionally tedious, precaution. The tax law specifically ');
document.write('allows you to deduct necessary and ordinary business expenses incurred in carrying on a trade or business. Keep a daily ');
document.write('record, diary, or planner with all your business expenses.</p></li><li><p>Use one, or at most two, credit cards exclus');
document.write('ively for all your business purposes. This way, you know exactly where to look for all the business expenditures.</p></l');
document.write('i><li><p>Do you travel overnight as part of your business? Of course you do. Do your clothes get dirty as a result? Th');
document.write('en the cost of dry-cleaning them is entirely tax deductible.</p></li><li><p>Does your spouse work? If not. You should ');
document.write('consider hiring her or him at minimum wage. Chances are, your spouse is doing plenty for your business already. Document');
document.write(' it. Then setup an insured medical reimbursement plan for your employees (i.e., your spouse) and dependents (your kids),');
document.write(' and deduct your contributions as a business expense. Note: if the plan is not funded by insurance, then other IRS rules');
document.write(' apply.</p></li><li><p>Do you have children? Are they older then six or seven? Then put them to work! By which I mean,');
document.write(' you should consider hiring them for minimum wage (perfectly legal in a family business). Their first $4,000 or so will ');
document.write('be basically tax-free to the child because of the standard personal tax deduction - and totally deductible to you! A not');
document.write('e here: make sure that your child is actually performing legitimate, business-related work you can document, if asked. Y');
document.write('es, stuffing envelopes does count.</p></li><li><p>Do you have more than one car?&nbsp; Then try to use one solely for ');
document.write('business purposes. This will take some self-discipline, but it will allow you get the most tax benefit from one business');
document.write(' vehicle.</p></li><li>If possible, conduct sales seminars and presentations at home. In this way, the cost of all food');
document.write(' and refreshments (even the leftovers!) will be totally tax deductible as a business expense.</li></ol><p>&nbsp;<br>Of');
document.write(' course, you need to prove, if asked, that this was not just a social bash! I suggest videotaping all or part of the eve');
document.write('ning for posterity, or collecting people\'s business cards and filing them with your receipts.</p><p>Sound tax planning');
document.write(' lets you keep more of your money - and your peace of mind.</p>');