Avoid These Common Errors and Audit Triggers Cary NC

No business wants to have its tax returns examined any more closely than necessary. Below are some of the most common errors businesses make when filing their taxes. Be sure you steer clear of these potential red flags.

Local Companies

Vanguard Vista
919-859-4001
1100 Crescent Green
Cary, NC
Clyde Cook & Associates
919-662-8858
1464 Garner Station Blvd
Raleigh, NC
Blackman Detective Services
919-821-0016
323 W Morgan St
Raleigh, NC
Excalibur Agency LLC
919-832-9017
33 W Davie St
Raleigh, NC
Eye C U LLC
919-834-0722
504 Freeman St
Raleigh, NC
Brannan Investigations
919-876-1404
2304 Ravenhill DR
Raleigh, NC
Cats Eye Private Investigations
919-878-9988
1009 Bullard Ct
Raleigh, NC
Denney Investigations
919-847-3344
184 Wind Chime Ct
Raleigh, NC
3rd Degree Investigations
2650 Discovery DR
2650 Discovery DR
Raleigh, NC
My International Assistant
919.827.4152
4413 Major Loring Way
Raleigh, NC



No business wants to have its tax returns examined any more closely than necessary. Below are some of the most common errors businesses make when filing their taxes. Be sure you steer clear of these potential red flags.

Preliminary Information, Filing Status, and Exemptions

  • Include the correct Social Security number for you and your dependents.


  • If you plan to be out of the country on vacation on April 15, don't assume you're entitled to an automatic filing extension. You must request an extension on Form 4868.
Gross Income

  • If you're reporting any income differently than it was reported to you on Form 1099, be sure to note the amount of income from the 1099 on your return then adjust it attaching your own statement explaining the adjustment.


  • If you rolled over a regular IRA to a Roth IRA in 1998, include one-quarter of the resulting income on your return (unless you opted to include it all in 1998).
Adjusted Gross Income

  • You can't make an IRA contribution for 2001 after April 15, 2002, even if you receive a filing extension.


  • You can't take a deduction for an IRA rollover.


  • You can't base IRA contributions on unearned income (such as dividends, interest, rents from rental property).


  • Don't deduct IRA contributions you made between January 1, 2001 and April 16, 2001, which you treated as 2000 contributions (deductible on your 2000 return).


  • You can't convert your regular IRA to a Roth IRA if your income is over a threshold amount.


  • Don't deduct any Roth IRA contributions.
Deductions and Tax Computation

  • Don't deduct 2001 state and local taxes you paid in 2002 (for example, don't deduct your fourth-quarter state estimated tax payment for 2001 made in 2002).


  • Don't take a deduction for your commuting expenses.


  • Make sure to look under the correct column for your filing status when you look up your tax liability in the tax tables.
Other Taxes

  • If you had self-employment income of $400 or more, be sure to figure self-employment tax. You must include in self-employment income directors fees and income from a partnership or limited liability company.


  • If you exercised an incentive stock option in 2001 or owned private activity bonds, check to see whether you owe any alternative minimum tax.
Payments

  • Make sure you attach your Form W-2s (and any 1099s showing tax withholding) to your return.


  • Recheck your math.


  • Be sure to sign your return. If you file jointly, both spouses must sign the return.


  • If your return is more than five pages, add extra postage to ensure proper delivery to the IRS.


  • If you apply for an extension, don't forget to include a check for any estimated balance due.


  • Send your estimated taxes separately from your income tax return.

Featured Local Company

Vanguard Vista

919-859-4001
1100 Crescent Green
Cary, NC
www.vista-survey.com

Related Local Events
Small Business Administration Day (SBC)
Dates: 11/18/2009 - 11/18/2009
Location: Durham Chamber
Durham, NC
View Details

Small Business Administration Day (SBC)
Dates: 11/18/2009 - 11/18/2009
Location: Durham Chamber
Durham, NC
View Details

Small Business Managment Institute (SBC)
Dates: 11/19/2009 - 11/19/2009
Location: Museum of Life+Science
Durham, NC
View Details

Small Business Managment Institute (SBC)
Dates: 11/19/2009 - 11/19/2009
Location: Museum of Life+Science
Durham, NC
View Details

Small Business Accounting
Dates: 12/5/2009 - 12/5/2009
Location: Northern Wake Tech Campus
Raleigh, NC
View Details
Rate Article
     
Articles Insider

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History