Standing up and doing whats right is the responsible of everyone. John McCain addressed this during his convention speech. In order for any enity to function properly guidelines, rules and laws must be followed.
Congress says more than (1) one million businesses cheat on payroll taxes to the tune of 58 billion dollars. The Congressional sub committee examined the magnitude of unpaid payroll taxes by businesses and the IRS’s collection enforcement methods for unpaid payroll taxes.
Almost 9 billion of the 58 billion dollars in unpaid payroll taxes is in queue for collection action with 80% not having a lien filed. The governments interest in the tax debtor is not protected when a lein is not filed reflecting a weakness in the IRS system.  The IRS looks at identifying action so that taxes can be assessed and liens filed. Liens may soon be filed automatically if certain conditions apply.
This is important to business owners as the IRS will target businesses to insure payroll taxes are paid or liens will be issued. I see the importance for business owners to stand up and do what is right and pay taxes that are due. No one likes to pay taxes but taxes are really a privilege for being able to own a business and support self and family by conducting  business. The IRS allows deductions and credits for business owners and it is simply easier to take advantage of what is allowed than to spend time on ways to cheat.
At the end of the day, I consider conducting business legally just feels good and standing up for whats right is the best policy . 
Reform of government requires everyone to stand up and take action on all levels however small. One million business owners owing payroll taxes totaling 58 Billion. That’s a lot of money.

Larrie Perkins
TaxMart Inc.

Larrie Perkins
TaxMart Inc
Florence, Alabama

Claiming Bad Debts? You May Not Be Allowed To:

Business owners often experience non payment for products or services when the buyer does not pay. Unfortunately, this is not always something that you can deduct off your taxes. Tax laws allow some bad debt expenses to be written off but is specific to the type of product provided by your business. If you sell a tangible product such as goods the bad debt may be an allowed deduction, but if your business sell services, you may not be able to claim bad debts as a deduction. The debt is no less regardless of product or services but understanding why is important. If services were allowed as a deduction it would be easy for business owners to inflate the costs of bad debts incurred. If a service related business experiences losses, the loss is not claimed as income but expenses such as utilities and daily operational expenses are still positive regardless of debt. For instance, if you pay an employee for services provided to a non paying client, the employees expenses are still deductible. It is best to talk with a tax professional about methods to deduct bad debts as situations concerning debt may influence deduction. Nearly all businesses will experience bad debts. It’s part of doing business but most business owners will become savvy to indications from customers that often lead to non payment.
Larrie Perkins
TaxMart

Paris Hilton for President?

Paris Hilton paints White House pink if elected President. It’s hard to vision the White House “pink” but according to Paris it would be “Hot”. My question for Ms Hilton; “What is your position concerning taxes for small businesses, especially home based business?” It seems Barack Obama wants to impose additional taxes on small business while John McCain plan is to give additional tax breaks. Home business tax benefits already in place needs to be left alone and not taxed greater than they are today. Home based businesses are actually good for the economy. For instances, anyone working from home uses less fuel simply for the reason of not having to commute to work. Going “Green” in my opinion deserves additional tax breaks allowed to business owners, however small. Working from home sets the tone for the future. Pink White House, Hot? maybe not, but Paris Hilton and Home based business;…Hot!
Paris for President,
Larrie Perkins
TaxMart

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Would you like to know how Tax benefits help your business grow.

Business Expense Deduction

Online Seminars come and go, but those relating to your business and or product
of your business are allowable deductibles. It really does not matter the physical address of your seminar attendance.
The costs I incurred by attending Ycademy Seminar this weekend are deductible as
a business expense. This is true if your business is formally structured as a business
and the topic or materials presented are related to your business. Online business
covers a broad area as promotion, consultation, technical services, software, Internet connection, personal computer and meals during seminar and in my case meal after seminar are deductible as well. Sandra, my wife and business partner shared a meal with friends and the topic of Seminar presentation were discussed after we enjoyed a great meal at a local steak house. Our meal expenses are deductible because we discussed business related information. It’s always great to share new technologies learned from seminar, especially to potential customers.
Speaking of new technologies, Ycademy Seminars are the best I have ever attended.
The knowledge gained is worth more than I paid to attend besides being able to interact with like minded business owners World wide. The hands on format and real concern for my business development by Yorgo, Bianca and Zo, (Ycademy’s Admin), always make my attendance a regular monthly event. Anyone considering or working an online business should be in attendance.
Business owners are allowed many benefits already in place by Uncle Sam, its just knowing how and why deductions are allowed that made my expenses 100% deductible. 

An Informed Business Owner Saves money.

Larrie Perkins
TaxMart

Income Under Reporting: Word of Advice

A word of advice to all who mess with the IRS. Business owners find themselves in financial troubles eventually if they cheat the IRS by making deductions that are truely personal on their business account. If you under report income you actually receive, it will caught up with you. The IRS is focusing on the gap that is totaling millions from non- reported income and will come down hard on you if you do not report what you earn.
Business owners do not need to cheat or under report income considering the variety of different deductions and tax breaks already in place. It’s smart business to take advantage of whats available and stay in line, plain and simple. Why spend time dedicated to cheating the IRS,  Take advantage of available deductions and tax breaks legally in place for business owners. 
Practice good business habits. Work the system legally and it will work for you.

Larrie Perkins
TaxMart

It’s Your Audit: Be Organized, Keep Accurate Records

Most people who face an audit are generally not because of dishonesty,  but because they do not keep accurate records.
If you claim a deduction on your tax return,  it is required that you have a record of the transaction. Organization in the form of good record keeping that is efficient to your business is the path to follow.
If you seperate your documents into catagories, such as travel, advertiseing, auto expenses (mileage), utilities, mortgage payments and professional fees etc and match receipts and canceled checks,  you will not have a problem documenting your deductions if the IRS asks you to prove your claim. The burden of proof is on the tax payer, not the IRS.
Small businesses are audited 3 times more than individuals. Targeted are travel expenses, entertainment expenses and under reporting income. An audit should be no problem if you have organized your expenses and documented them. Besides accurate records, you will see being organized is really staright forward and simple. 

Larrie Perkins        
Tax Mart