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Old 06-29-2018
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Default Re: Does the Tax Man care about what we sell to make our living?

I am an accountant, but I am not a tax accountant. Based on that statement alone, I can tell you what will happen during an audit. Audits are generally an extremely small scope of what the IRS has time to examine. You have to have some major red flags which are somewhat automated now. If you trigger an audit, you will be contacted that an IRS CPA will examine your information. Usually, they meet with you at a government/public location that is safe for both parties. During this meeting, he/she will examine every single document or total that you used in your tax return. They will then tell you face to face the legality and if it meets code during this meeting.

I'm not giving tax advice with saying this, but I will give you a technique I use. When I prepare my taxes, I create a word document with small notes of how I came to that number in the event that I get audited. Then there is no reconciliation or confusion. It not only confirms proof, but makes sure you double check your numbers for correctness.

To answer your question of what you sell, the CPA could not give two ****s less unless it is obviously stolen goods or drugs.

In conclusion of all of this, just pay your taxes. The IRS boys can do whatever they want. They are next level on the laws and regulations they abide by. It is far easier to pay taxes and focus on legal money, than to make a few bucks off dodging taxes and having to pay triple in council when they hammer you.
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