Chapters (Time Stamps): 1:18 Audit Tip #1 When to file 2:36 Audit Tip #2 Paying your taxes 3:32 Audit Tip #3 IRS Notice? 4:25 Audit Tip #4 Did you file these? 6:36 Audit Tip #5 Do not use these numbers 8:05 Audit Tip #6 How should you have your records? 10:36 Audit Tip #7 Should you always deduct losses? 11:00 Audit Tip #8 Explain yourself fool! 13:00 Audit Tip #9 Reshaping your business 14:51 Audit Tip #10 Mixing Business With Pleasure 15:42 Audit Tip #11 Cleaning up the books! 17:00 Audit Tip #12 Are you gaming the system? 18:25 Audit Tip #13 I dare you to audit me! 20:30 Audit Tip #14 Is cash trash? 21:46 Audit Tip #15 Payroll issues are worse then audits
My #1 rule is stay away from Triple Zero. Does it happen yes but not often. Salary and rent comes to mind. But Audits come from using ,000. IRS will follow the money between Business accounts and personal accounts. They can find any bank account you have. Seems IRS audits come from not reporting all ones 1099’s on your tax return. That will always trigger a letter from the service. I just wish they would hire people to process tax returns, answer their phone and answering the mail. Another great video. This is a timely video. Sometimes I’m ready to retire 🤔🤔🤔
They don't like to make our job easy do they? Always changing laws and far less people going to school to become accountants and CPAs for this line of work.
Of course. They can either go after 1 big fish who has a lot of resources to fight and dragout the audit, or they can go after 20 small business owners who have less resources and knowledge. But since it's politics we will probably only hear of the 1 big fish they audited and not the hundreds of small business owners.
The sad part is, at least around here, it isn't the middle class in the gig economy, it is people that are barely scraping by and using those options to make a bit of extra money or cover a bill like their car payment or whatever.
Thank you Mrs Mortgage :) I can't wait to produce it for my viewers and my clients. It is a well needed skill 99% of people never receive an education on.
banks/ credit unions, management, down to tellers, can use their personal discretion to report the 10 k transaction or not. I've been with my place for 30 years, know the staff, and do ask if they feel the need to file a report is merited, in my case they never do. This is what they tell me, to date I've never heard from anyone about deposits e.t.c.
The new 401k changes in the tax law got me to thinking that my goal isn't to let that money sit in there until I die, which is what the changes are encouraging me to do. Anyway I am wondering when I pull money out, how do I file it on my taxes. I have 401k regular, and Roth and a Roth IRA. I found a form 8606, but I am so confused by the basis. The IRS doesn't seem to want to use the word 401k, it says traditional or simple. A video on this would be awesome. You could call it, so now you are 59.5 how to pull your money out.
Hi Firemispy the 8606 form is generally for those who have non deductible IRAs. With a 401K that wouldn't be something you would need to worry about it. Once you are 59 1/2 you can start taking distributions anytime without penalties.
To late they got me 😭😭😭 they got for not paying tax on Disability check, I didn't think it made that much of a difference. Boy was i wrong about $1400.00 wrong 😳😳😢😢😭
If you hire someone to do work for you, i.e. call up a handyman service to fix your furnace, or a lawn service to mow your yard, do you really have to do a 1099? I thought that was like buying milk at the store or going to a carwash... and on them to keep records for their business/sole proprietorship or however they are set up?
Great question, if it is for personal matters no 1099 is required. If it is business related though it can generate a need for 1099s. People who do not have a business generally never need to file 1099s.
@@MoneyandLifeTV so how do you know when you are just paying a business to do a service and when you are paying a business that will need a 1099 for whatever service it is they are providing for your business? As an example, Say I broke the screen on the phone or maybe a camera is more realistic to get the cost up to the threshold you mentioned. I use it to record for my youtube channel, and so the business is paying for the repair at the local camera repair guy.... my brain would say that is a business expense, save the receipt to record on my taxes, but never would it cross my mind 6 months later to send them a 1099?
If you don’t want to become a victim of the IRS, make sure you vote for the party that is not responsible for the massive increase in the IRS. We have the power to defund the increase by voting for people who do not want to prey on you.
Hi Francisco, Cyrpto trading would be part of schedule D on your tax return when you are filing your return. If you do not report the activity you may subject yourself to audit and penalties unfortunately.
That is a good perspective Dave. Typically the first scan is from people's computer software. That is why it is always important to review the return carefully before filing. ....then IRS computer software scans the return against their database. After that an agent may review it. If something looks slightly off the client will get a notice. If something Looks drastically off they may decide to pull them for an audit.
@@MoneyandLifeTV I enter all the brokerage stuff by hand and I always make mistakes, mostly due from poor eyesight. I keep going over it every week until I have at least one agreement. Then I sit on the whole thing for a while to make sure the Brokerage doesn't' sent me a corrected form. Then before sending it all in via the computer, I give it the last look over. It is nice to see a video on what the enemy is doing. :)
Chapters (Time Stamps):
1:18 Audit Tip #1 When to file
2:36 Audit Tip #2 Paying your taxes
3:32 Audit Tip #3 IRS Notice?
4:25 Audit Tip #4 Did you file these?
6:36 Audit Tip #5 Do not use these numbers
8:05 Audit Tip #6 How should you have your records?
10:36 Audit Tip #7 Should you always deduct losses?
11:00 Audit Tip #8 Explain yourself fool!
13:00 Audit Tip #9 Reshaping your business
14:51 Audit Tip #10 Mixing Business With Pleasure
15:42 Audit Tip #11 Cleaning up the books!
17:00 Audit Tip #12 Are you gaming the system?
18:25 Audit Tip #13 I dare you to audit me!
20:30 Audit Tip #14 Is cash trash?
21:46 Audit Tip #15 Payroll issues are worse then audits
My #1 rule is stay away from Triple Zero. Does it happen yes but not often. Salary and rent comes to mind. But Audits come from using ,000.
IRS will follow the money between Business accounts and personal accounts. They can find any bank account you have.
Seems IRS audits come from not reporting all ones 1099’s on your tax return. That will always trigger a letter from the service.
I just wish they would hire people to process tax returns, answer their phone and answering the mail.
Another great video. This is a timely video. Sometimes I’m ready to retire 🤔🤔🤔
They don't like to make our job easy do they? Always changing laws and far less people going to school to become accountants and CPAs for this line of work.
Do you think IRS will target the middle class with all the new auditors coming in?
No fool
Of course. They can either go after 1 big fish who has a lot of resources to fight and dragout the audit, or they can go after 20 small business owners who have less resources and knowledge. But since it's politics we will probably only hear of the 1 big fish they audited and not the hundreds of small business owners.
The sad part is, at least around here, it isn't the middle class in the gig economy, it is people that are barely scraping by and using those options to make a bit of extra money or cover a bill like their car payment or whatever.
Can’t wait for your record keeping video. Thank you!
Thank you Mrs Mortgage :) I can't wait to produce it for my viewers and my clients. It is a well needed skill 99% of people never receive an education on.
Sharing this on my Facebook because I only see others only sharing things to get you scared. Thank you Mike!
I so appreciate that Maria!! Means a lot.
Love your shirt! Green is my favorite!
Thanks man, dig your tude.
Rock on! Thanks Cisko!! I really appreciate it.
Retaining documentation is key
Yes sir!! I like what I am hearing :)
Thanks Mike! Great video.
Thank you Nghi! I really want to protect people from the onslaught of new auditors coming.
Excellent content and presentation! Thank you, Mike!
Thanks so much Tina! I put a lot of heart and soul into this one. Anything to keep IRS auditors off our backs.
@@MoneyandLifeTV Your attention to detail and preparation in this video are evident. Keep up the great work!
Will do Tina thanks for watching :)
If you cannot pay your taxes watch this: czcams.com/video/HmxHUpMaUT8/video.html
banks/ credit unions, management, down to tellers, can use their personal discretion to report the 10 k transaction or not.
I've been with my place for 30 years, know the staff, and do ask if they feel the need to file a report is merited, in my case they never do. This is what they tell me, to date I've never heard from anyone about deposits e.t.c.
Good to know! Thank you for sharing your industry insight.
The new 401k changes in the tax law got me to thinking that my goal isn't to let that money sit in there until I die, which is what the changes are encouraging me to do. Anyway I am wondering when I pull money out, how do I file it on my taxes. I have 401k regular, and Roth and a Roth IRA. I found a form 8606, but I am so confused by the basis. The IRS doesn't seem to want to use the word 401k, it says traditional or simple. A video on this would be awesome. You could call it, so now you are 59.5 how to pull your money out.
Hi Firemispy the 8606 form is generally for those who have non deductible IRAs. With a 401K that wouldn't be something you would need to worry about it. Once you are 59 1/2 you can start taking distributions anytime without penalties.
To late they got me 😭😭😭 they got for not paying tax on Disability check, I didn't think it made that much of a difference. Boy was i wrong about $1400.00 wrong 😳😳😢😢😭
Oh no, that hurts!!
Looks like I will be borrowing the money back out to off set the taxes
If you hire someone to do work for you, i.e. call up a handyman service to fix your furnace, or a lawn service to mow your yard, do you really have to do a 1099? I thought that was like buying milk at the store or going to a carwash... and on them to keep records for their business/sole proprietorship or however they are set up?
Great question, if it is for personal matters no 1099 is required. If it is business related though it can generate a need for 1099s. People who do not have a business generally never need to file 1099s.
@@MoneyandLifeTV so how do you know when you are just paying a business to do a service and when you are paying a business that will need a 1099 for whatever service it is they are providing for your business? As an example, Say I broke the screen on the phone or maybe a camera is more realistic to get the cost up to the threshold you mentioned. I use it to record for my youtube channel, and so the business is paying for the repair at the local camera repair guy.... my brain would say that is a business expense, save the receipt to record on my taxes, but never would it cross my mind 6 months later to send them a 1099?
Great tips - audits are literally the worst!
Yes sir! Love the profile pic
I wonder if getting a job with the IRS would be recommended now that they are hiring a lot more.
Some of the rolls pay pretty well actually. I have considered it haha, but I think i love running my own business too much now.
If you don’t want to become a victim of the IRS, make sure you vote for the party that is not responsible for the massive increase in the IRS. We have the power to defund the increase by voting for people who do not want to prey on you.
What if you traded with crypto do you need the form for it and if you don’t file that form can you get audited
Hi Francisco, Cyrpto trading would be part of schedule D on your tax return when you are filing your return. If you do not report the activity you may subject yourself to audit and penalties unfortunately.
What if you have the receipt but paid cash?
Good question Chris, yes that works just fine as long as you have a receipt.
I wish them luck to find those 87k employees....
Perhaps carrying a fire arm will entice them to apply
Only Special Agents carry firearms, not the auditors.
I think that everyone is audited, but you only hear from them is something looks goofy.
That is a good perspective Dave. Typically the first scan is from people's computer software. That is why it is always important to review the return carefully before filing. ....then IRS computer software scans the return against their database. After that an agent may review it. If something looks slightly off the client will get a notice. If something Looks drastically off they may decide to pull them for an audit.
@@MoneyandLifeTV I enter all the brokerage stuff by hand and I always make mistakes, mostly due from poor eyesight. I keep going over it every week until I have at least one agreement.
Then I sit on the whole thing for a while to make sure the Brokerage doesn't' sent me a corrected form.
Then before sending it all in via the computer, I give it the last look over. It is nice to see a video on what the enemy is doing. :)
LOL know your enemy my friend :)
Step number 16 hire Mike to do my Taxes… errr spoiler alert sorry everyone.
LOL 😀