IRS INCREASES ENFORCEMENT BUDGET BY $5.5 BILLION TO LOCATE EXTRA TAX REVENUE FROM HOME BASED BUSINESSES

IRS believes home based, direct selling businesses could be a major source of tax revenue. Just to prove it, they’ve convinced Congress to increase their annual “enforcement budget” to $5.5 Billion dollars. This means the IRS will intensify its audits of small businesses and one focus will be home based businesses with losses.

Friends, that money will pay for a lot of audits! You see, IRS believes small businesses like yours are a major part of the tax gap, and they aim to get those tax dollars paid.

Now more than ever, businesses with a profit intention need to be mindful of the documentation you have to support your profit intention.

Do you:
•Have a home based business?
•Work hard to make a profit but still have losses?
•Worry about how the hobby loss rules may impact your business?
•Wonder if your business is a potential target of IRS, but don’t know what to do about it?
•Think it might be easier to quit your business rather than deal with taxes?
•Believe you should pay your fair share of taxes, but no more than that?

When CPAs are worried, we should all be listening at full attention. Rather than cause you all to just worry, our tax-law guru, Vicky Collins, CPA has put together a teleconference that will inform you all how to document your profit intention and prevent your business from being re-classified as a hobby with the new IRS Initiatives.

As you know, we at Ascend are always teaching three business rules:

(1) PROVE INTENT RULE: You must prove that you have an intent for profit in your business. You do that by keeping diligent books and records in Ascend (remember having appropriate “books” for your business is not negotiable–they’re legally required, and your Inventory program is NOT books). Sadly, you can’t pull the personality, busy, or “I don’t like numbers” card w/ IRS.

(2) COMPANY MONEY RULE: Every single dollar, every single cent of revenue generated by your business needs to be put in your business bank account (yes, even ProPay dollars… NEVER apply those directly to an Order). No using your business bank account for personal things, and no co-mingling business and personal income or credit cards.

(3) YOU’RE NOT A DUMB BLONDE, SO DON’T ACT LIKE ONE: You’re in business, legitimately. You have all the rights and responsibilities that business owners have under the law. “Profit level inventory” is a phrase, but there is no profit in unsold products. Remember, you can’t even deduct the cost of the product until you SELL it. So sell your heart out. Revenue (sold inventory) is the cornerstone to a successful, profitable business.

With the IRS new initiatives and hefty budget to purposefully hunt for additional tax revenue from your business–implementing these 3 rules has never been so important to your MK business! If you’ve had good intentions and a few hiccups in execution, it’s not too late to start using Ascend– it’s a brand new MK year! If you don’t know where to start, feel free to call our sales office 509-456-6524.

The upcoming teleconference will dive in deep to the new IRS Initiatives, and practical steps on WHAT TO DO, especially if you showed losses in your business last year.

Class Date: Sunday August 16th @ 8p CST (6p PST, 7p MST, 9p EST)  Even if you cannot attend the call live, sign up now as an MP3 download will be available after the call. Register for the class below…

•6 main types of small businesses audited by IRS
•9 Key Characteristics IRS uses for business vs. hobby
•3 Main IRS Examination Techniques used
•4 Types of information likely to be requested
•3 Key Rulings and Laws that support taxpayers
•What happens to your deductions when business is reclassified as a hobby

Cost:  $29 (1 hr of consultation w/ Vicky is $225, this is very generous of her)

Register for the Class: CLICK HERE