3. Self-Employment
You must know that the IRS tends to examine self-employed individuals carefully. Especially if you don’t report your profit at all. This can lead to more complications simply because the IRS doesn’t allow businesses with no profit. They say you can keep it as a hobby instead of a company. You may be suspected of dodging the annual tax.
4. Using only round numbers
If you are like me, then you probably used to struggle a lot with math in high school. And that’s OK. But when it comes to the IRS and taxes, you should know that you can’t fool Uncle Sam. When you are making your calculation, make sure the numbers are correct and you don’t make any estimations.
If you have a small business and you don’t know for sure what the exact price was for everything you bought, ask your accountant. If something is around $465.20, make sure you round it up to $466.
Perfect round numbers will draw the IRS’s attention in the blink of an eye.
Curious