IRS On Your Tail? Here are 10 Genius Ways to Escape an Audit as a Small Business Owner!

As a small business owner, receiving a notice of an IRS audit can be a stressful and overwhelming experience. The audit process can be complex and time-consuming, but it's essential to handle it in a professional and timely manner to avoid any penalties or further consequences. In this article, we will discuss ten ways that small business owners can handle an IRS audit, including hiring a CPA to manage all communication with the IRS, reviewing the audit letter, understanding IRS guidelines, and being prepared for questions. These steps will help you navigate the audit process successfully and come out on the other side with minimal damage to your business's finances and reputation.

Review the Audit Letter Carefully

So, you've received an audit letter from the IRS, and the dread has set in. But wait, don't panic just yet! The first step in handling an IRS audit is to review the audit letter carefully. Yes, it may not be the most exciting thing to do, but it's important to know what you're dealing with.

The audit letter will provide you with important information about the scope and nature of the audit. It will indicate the years under review, and the specific items the IRS will be examining. The IRS is required to explain why they chose to audit you, and this explanation will be included in the audit letter. It's important to understand this reasoning and review the letter for accuracy.

When reviewing the audit letter, pay attention to the deadline. The audit letter will provide you with a deadline to respond to the IRS, which is typically 30 days from the date of the letter. This deadline is critical, and you don't want to miss it. If you do, the IRS may take further action, such as issuing a summons or even seizing your assets. So, make sure to take note of the deadline and respond in a timely manner.

Another key piece of information to look for in the audit letter is the name and contact information of the auditor. You'll want to make sure you have the correct contact information, and it's important to note that the auditor may change during the course of the audit. So, make sure to keep all contact information in a safe place, and be sure to confirm any changes in writing.

Reviewing the audit letter carefully is a critical step in handling an IRS audit. Make sure to read it thoroughly, pay attention to the deadline, and note the contact information of the auditor. And if all else fails, just take a deep breath and remember, you've got this!

Gather the Requested Documentation

One of the first things you should do is gather all the requested documentation. Now, what does that mean exactly? Well, it depends on what the IRS is looking for. The letter you received from them should tell you exactly what they need to see.

First, read the letter carefully. You don't want to miss anything important. After you've read it a few times, make a list of all the documents you need to provide. It can be helpful to organize the list by category, such as income, expenses, and deductions.

Next, it's time to start gathering those documents. This can be a bit of a scavenger hunt, so get ready to dig through your files. It's a good idea to set up a specific folder or binder just for the audit. As you find each document, put it in the folder so you don't have to search for it later.

Here are a few documents you might need to gather:

• Bank statements: The IRS may want to see your bank statements to verify income and expenses. Make sure you have statements for all relevant accounts for the audit period.
• Invoices and receipts: If you claimed any deductions, you'll need to provide documentation to back them up. This could include receipts for supplies, invoices for services, and so on.
• Tax returns: The IRS may want to see your previous tax returns to look for any patterns or inconsistencies. Make sure you have copies of all relevant returns.
• Contracts and agreements: If you have any contracts or agreements related to your business, such as rental agreements or vendor contracts, you may need to provide them.

It's important to make sure you have all the documents the IRS is asking for. If you're missing something, it could delay the audit or even lead to penalties. So take your time and double-check your list before you submit anything.

In summary, gathering the requested documentation can be a bit of a chore, but it's a crucial step in handling an IRS audit. Make sure you read the letter carefully, organize your list, and create a folder or binder to keep everything in one place. And don't forget to check and double-check your list before you submit anything!

Requesting an Extension

The moment you see the IRS Audit Letter in your mailbox, you know you're in for a long ride. Suddenly, you're thrust into a world of jargon, documentation, and deadlines, and it feels like everything you thought you knew about taxes has been thrown out the window. To make matters worse, the deadline is fast approaching, and you're starting to feel the pressure.

But fear not! There is a way out of this rabbit hole, and it's called requesting an extension. Yes, you read that right. You can ask the IRS for more time, and they might actually grant it to you. Of course, you have to do it in writing, and you have to provide a good reason for why you need the extension. But don't worry, we've got you covered.

Here's a sample letter you can use to request an extension:

Dear Sir/Madam,

I hope this letter finds you well. Unfortunately, it seems to have found me in a bit of a bind. As you can imagine, I was quite surprised and not a little dismayed to receive the notice of an audit from the IRS. I immediately consulted my trusted accounting firm, and they assured me that everything was in order, but that it would take a bit of time to gather all the necessary documentation and prepare our response.

I understand that the deadline for the response is fast approaching, but I'm afraid that we won't be able to meet it. That's why I'm humbly requesting an extension of 30 days to provide the requested information. I hope this will give us enough time to compile all the documents and provide a thorough and accurate response to your inquiry.

Thank you for your understanding, and please let me know if there's anything else I can do to facilitate this process.

Sincerely,

[Your Name]

Understanding the IRS Guidelines

The Internal Revenue Service, or IRS, can be a bit intimidating for small business owners. But, with a little knowledge of the IRS guidelines, you can navigate the audit process with a bit more ease.

First, let's understand what an audit is. An audit is an examination of your business's financial records, conducted by the IRS to ensure that your tax returns are accurate. This can be a daunting process, but by knowing the guidelines set forth by the IRS, you can make sure you're well-prepared.

One of the most important IRS guidelines to remember is to keep thorough and accurate records. This means keeping all receipts, invoices, and other documents related to your business's financial transactions. In addition, it's important to keep these records for at least three years, as that is the statute of limitations for the IRS to audit your returns.

Another guideline to keep in mind is to make sure your tax returns are consistent. This means that your returns should match your financial records, with no discrepancies. In addition, if you have made an error in a previous return, it's important to file an amended return as soon as possible.

It's also important to understand what the IRS considers to be valid deductions. For example, if you're running a home-based business, you may be able to deduct a portion of your home's expenses, such as rent or mortgage payments, utilities, and maintenance costs. However, to be able to take these deductions, you must be able to prove that the space you're using for your business is exclusively used for that purpose.

In addition, it's important to understand the differences between a business expense and a personal expense. For example, if you take a client out for dinner, you can deduct that expense as a business expense. However, if you take your family out to dinner, that is considered a personal expense and cannot be deducted.

One of the most important guidelines to remember is to be honest and transparent with the IRS. If you make an error on your return, it's best to come forward and make a correction as soon as possible. In addition, if the IRS finds an error during an audit, it's best to be upfront about it and provide any necessary documentation to support your case.

It's also important to know your rights as a taxpayer. You have the right to appeal any decision made by the IRS, and you have the right to representation during an audit. This means that you can hire a tax professional, such as a CPA, to help you through the audit process.

One of the most important IRS guidelines to remember is to be prepared for questions. During an audit, the IRS may ask you a lot of questions about your business and its finances. It's important to be prepared to answer these questions honestly and accurately, and to provide any necessary documentation to support your answers.

Finally, if you're feeling overwhelmed or intimidated by the audit process, it's important to reach out for help. A tax professional, such as a CPA, can help you navigate the audit process and provide guidance on how to handle any issues that may arise.

Understanding the IRS guidelines can help you navigate the audit process with ease. By keeping thorough and accurate records, being consistent with your returns, understanding valid deductions, being honest and transparent, knowing your rights, and being prepared for questions, you can make sure that your audit goes smoothly. And, if you're feeling overwhelmed or intimidated, don't be afraid to reach out for help. With the right guidance and support, you can handle any audit with confidence.

Be Prepared for Questions

When you receive an audit letter from the IRS, it's important to prepare for questions that they may ask you. They will want to know why you took certain deductions, how you calculated your income, and more. Being prepared for questions can help you navigate the audit process with ease and confidence.

One of the key things to remember is to have all of your documentation organized and readily available. You don't want to be scrambling to find receipts or other evidence of expenses when the auditor is in your office. Instead, keep all of your paperwork in one place and create a system that makes sense to you. This way, you can easily find what you need when the auditor starts asking questions.

Another important aspect of being prepared for questions is to practice your answers. You don't want to sound like you're lying or unsure of yourself when the auditor asks you something. Instead, practice your responses ahead of time so that you can answer confidently and accurately.

It's also important to be honest with the auditor. Don't try to hide anything or downplay certain expenses. The auditor is there to ensure that you paid the correct amount of taxes, and if they find discrepancies, it could lead to additional penalties or even legal trouble. So, be truthful and forthcoming with all of your answers.

In addition, you can also consult with your CPA to help you prepare for the audit. They can review your documentation and help you create a strategy for answering the auditor's questions. And, if you feel uncomfortable answering questions on your own, you can even hire your CPA to accompany you during the audit.

By being prepared for questions, you can make the audit process go much more smoothly. You'll feel confident in your answers, and the auditor will appreciate your organization and honesty. So, take the time to prepare, and you'll be able to navigate the audit process with ease.

Be Honest and Transparent

As a small business owner, the last thing you want is to receive an audit letter from the IRS. The mere thought of an audit can be a source of stress and anxiety for many. It’s important to understand that the IRS conducts audits to ensure compliance with tax laws and regulations. As a result, being honest and transparent is crucial during an audit.

Transparency is the key to ensuring that the audit process is as smooth as possible. The IRS will ask for various documents and information to support your tax return. Providing the requested information in a timely and accurate manner will help to avoid any potential red flags. In addition, if you identify any errors in your tax return, it’s essential to be honest and transparent with the IRS about them.

When it comes to an IRS audit, honesty is always the best policy. Being upfront and transparent about any discrepancies can go a long way in establishing trust with the auditor. Attempting to hide or cover up mistakes could lead to serious legal consequences, including fines and even criminal charges.

Of course, being honest and transparent during an audit is easier said than done. Many small business owners may be nervous or intimidated during the audit process. It’s essential to stay calm and composed and to remember that honesty is the best way to move forward.

Hiring a qualified CPA can also be incredibly helpful during an audit. A CPA can act as a liaison between you and the IRS, communicating any concerns or questions on your behalf. In addition, a CPA can review your records to ensure that they are complete and accurate, which can help to avoid any potential issues during the audit.

Know Your Rights as a Taxpayer

It's important to know that you have rights as a taxpayer. Yes, the IRS may seem like a powerful entity, but don't forget that you have some power too. So, let's dive in and talk about what you need to know.

First and foremost, you have the right to be informed. That means you're entitled to clear explanations of the tax laws, IRS procedures, and your rights as a taxpayer. If you're unsure of something, don't be afraid to ask questions. The IRS has a duty to provide you with accurate and timely information.

Next, you have the right to quality service. The IRS is obligated to provide prompt, courteous, and professional service to all taxpayers. So, if you're feeling frustrated by long wait times or rude customer service, speak up. You deserve better.

Another important right you have is the right to pay no more than the correct amount of tax. That means you shouldn't have to pay any additional taxes, penalties, or interest that aren't legally owed. If you feel that you're being charged unfairly, it's within your right to dispute it.

You also have the right to appeal any IRS decision. That means if you don't agree with the IRS's findings, you have the right to request an appeal. This gives you a chance to present your case to an independent body and have your case reevaluated.

Lastly, you have the right to confidentiality. The IRS is obligated to keep your personal and financial information private. If you're concerned about the privacy of your information, don't hesitate to ask the IRS about their privacy policies.

In summary, don't forget that you have rights as a taxpayer. You have the right to be informed, to receive quality service, to pay no more than the correct amount of tax, to appeal IRS decisions, and to confidentiality. Don't be afraid to exercise your rights if you feel like the IRS is treating you unfairly.

Consider Making a Payment Plan

It’s important to consider the best course of action for your business. One option that may be available to you is to make a payment plan with the IRS.

Let’s face it, nobody wants to be in debt to the IRS. But in some cases, making a payment plan can be a sensible approach to resolving any outstanding tax liabilities your business may owe. With a payment plan, you can set up an agreement with the IRS to make monthly payments towards your outstanding balance.

Now, before you start panicking about the idea of entering into a payment plan, let’s take a closer look at some of the benefits. First and foremost, it can help you to avoid further action from the IRS, such as wage garnishment or asset seizure. By taking the initiative to work out a payment plan, you’re showing good faith and taking responsibility for your tax obligations.

Secondly, a payment plan can be a useful tool for managing cash flow in your business. By breaking down your tax debt into monthly payments, you can ease the financial burden and ensure that you’re meeting your obligations to the IRS while still being able to meet your other financial commitments.

Of course, it’s important to keep in mind that interest and penalties will continue to accrue on your outstanding tax debt, even while you’re making payments. But as long as you’re staying current on your payments, the IRS is less likely to take further enforcement action against your business.

So, if you find yourself in a situation where your business owes tax debt to the IRS, don’t despair. Making a payment plan can be a smart approach to resolving the issue and getting back on track. Just remember, the most important thing is to be proactive and take action to resolve the issue, rather than ignoring it and hoping it will go away on its own.

Stay Calm and Composed

When it comes to handling an IRS audit, it's natural to feel a little anxious or stressed out. After all, it's not everyday that we get called to justify every expense and deduction that we made in our tax returns. But as a small business owner, it's important to stay calm and composed throughout the entire process, and not let the fear of being audited get the better of us.

One of the key ways to stay calm and composed during an IRS audit is to prepare well in advance. This means reviewing all your financial statements, gathering all the necessary documentation, and anticipating the questions that the auditor might ask. By being well-prepared, you'll be able to address the auditor's queries with confidence, and avoid getting flustered by unexpected surprises.

Another way to stay calm and composed during an audit is to maintain a positive attitude. Instead of thinking of an audit as a stressful and unpleasant experience, try to think of it as an opportunity to learn more about your business, and to improve your financial reporting processes. By maintaining a positive mindset, you'll be better equipped to handle the auditor's questions, and to present yourself as a cooperative and responsible taxpayer.

At the same time, it's important to recognize that an audit is not a personal attack. The IRS is simply doing its job of ensuring that all taxpayers are in compliance with the tax laws. So don't take it personally, and don't get defensive or argumentative. Instead, be polite and respectful, and try to provide the auditor with all the information and documentation that he or she needs.

Hire a CPA

Dealing with an audit can be a nerve-wracking and stressful experience for any small business owner. The idea of facing the IRS auditors can be intimidating, and it's easy to feel overwhelmed and anxious. Fortunately, there's a solution to make this process less of a headache: hiring a Certified Public Accountant (CPA) to represent you during an audit.

One of the main benefits of hiring a CPA to handle your audit is that they can take care of all the communication with the auditors. This can be a significant relief for business owners who are already busy with other aspects of running their company. Having a CPA communicate with the auditors on your behalf can help you avoid any miscommunications or misunderstandings that could arise from a lack of experience with tax law.

Additionally, hiring a CPA to represent you during an audit can also bring a sense of reassurance. A skilled CPA has the necessary training and knowledge to effectively handle any questions or concerns the auditors might have. They can also help you understand the audit process and guide you through it, providing support and advice along the way.

Another benefit of hiring a CPA for an audit is that they can help you prepare for it in advance. They can review your business's financial statements and documentation, making sure everything is in order and that you're properly prepared for the audit. This can save you time and stress, and also help ensure that your business is in compliance with all tax regulations.

If you're facing an IRS audit, don't panic! You don't have to handle it alone. Contact the skilled and experienced CPAs at Taxstra today to learn more about how we can help you handle your audit with ease. We can be reached at 217-788-0750, contact@taxstra.com, or by visiting our website at www.taxstra.com. With our help, you can face your audit with confidence and peace of mind.

Traditional IRA vs. Roth IRA - What's the Difference?

 Are you confused about the difference between a Roth IRA and a traditional IRA? You're not alone! Many people are unsure of the key differences between these two types of individual retirement accounts (IRAs) and which one is best for them.

In this blog post, we at Taxstra, your friendly neighborhood accounting firm, will break down the differences between a Roth IRA and a traditional IRA and help you determine which one is the best fit for your retirement goals.

First, let's define what each type of IRA is. A traditional IRA is a type of retirement account that allows you to make pre-tax contributions. This means that the money you contribute to your traditional IRA is tax-deductible, and your account will grow tax-free until you withdraw the funds in retirement.

On the other hand, a Roth IRA is a type of retirement account that allows you to make after-tax contributions. This means that the money you contribute to your Roth IRA has already been taxed, and your account will grow tax-free until you withdraw the funds in retirement.

So, what's the difference between these two types of accounts? The main difference is the timing of the tax benefits. With a traditional IRA, you get the tax benefit up front when you make your contributions. With a Roth IRA, you get the tax benefit in the future when you withdraw your money in retirement.

Now, let's dive into the pros and cons of each type of IRA.

The Pros of a Traditional IRA

1. Tax-Deductible Contributions: As we mentioned earlier, contributions made to a traditional IRA are tax-deductible. This can be a great way to lower your taxable income and potentially save you money on your taxes.

2. Required Minimum Distributions (RMDs): Traditional IRA account holders are required to start taking RMDs at age 72. This can be beneficial for those who may not have a clear plan for how they want to spend their retirement funds and want to ensure they are using the money in a timely manner.

3. The Pros of a Roth IRA

   1. Tax-Free Withdrawals: With a Roth IRA, your contributions have already been taxed, so all withdrawals, including any investment gains, are tax-free in retirement. This can be a huge benefit for those who expect to be in a higher tax bracket in retirement.

   2. No RMDs: Unlike traditional IRA account holders, Roth IRA account holders are not required to take RMDs. This allows you to keep your money in the account as long as you want and use it as you see fit in retirement.

   3. More Flexibility: With a Roth IRA, you can withdraw your contributions at any time without penalty. This allows for more flexibility in case of an emergency or unexpected expenses.

   So, which one is best for you? The answer is, it depends. Both traditional and Roth IRAs have their own unique benefits and drawbacks.

   If you're in a high tax bracket now and expect to be in a lower tax bracket in retirement, a traditional IRA may be the better choice for you. The tax-deductible contributions can help lower your taxable income now, and you'll pay taxes on the withdrawals in retirement when you're in a lower tax bracket.

   On the other hand, if you're in a lower tax bracket now and expect to be in a higher tax bracket in retirement, a Roth IRA may be the better choice for you. The after-tax contributions may not provide as much immediate tax savings, but the tax-free withdrawals in retirement can save you a significant amount of money in the long run.

   In summary, both traditional and Roth IRAs can be great options for your retirement savings. It's important to consider your current and future tax bracket, as well as your retirement goals and plans, when deciding which one is best for you.

   At Taxstra, we're happy to help you weigh your options and make an informed decision. Give us a call or schedule an appointment to discuss your retirement savings plan and how we can help you achieve your financial goals.

   And remember, no matter which type of IRA you choose, the most important thing is to start saving for your retirement as early as possible. The earlier you start, the more time your money has to grow and compound, and the more comfortable your retirement will be.

   Now, go forth and start saving for your golden years!

Understanding the Tax Implications of a Car Trade-In for a Small Business

If a small business owner decides to trade in a car that has been depreciated for a new vehicle, the tax treatment of the transaction will depend on whether the business uses the car for business purposes or for personal use.

If the car is used for business purposes, the business may be able to claim a deduction for the business use of the car on its tax return. The deduction would be based on the percentage of the car's use that was for business purposes. For example, if the car was used 50% for business and 50% for personal use, the business could claim a deduction for 50% of the car's cost.

If the car is traded in for a new car, the business may be able to claim a deduction for the trade-in value of the old car as a business expense. The trade-in value is the amount the business receives from the dealer for the old car. The business can only claim a deduction for the trade-in value if it is equal to or less than the basis (cost) of the old car. If the trade-in value is greater than the basis of the old car, the business must report the excess as a gain on the sale of the old car.

If the car is used for personal purposes, the business owner may not be able to claim a deduction for the business use of the car. However, if the car is traded in for a new car, the business owner may be able to claim a personal deduction for the trade-in value of the old car as a miscellaneous itemized deduction on their personal tax return. This deduction is subject to the 2% of adjusted gross income (AGI) limit, which means that the total of all miscellaneous itemized deductions must be greater than 2% of the taxpayer's AGI before any of the deductions can be claimed.

It's important for small business owners to keep good records of their car purchases and use, as well as any trade-ins, to ensure that they are claiming the correct deductions on their tax returns. If you have any questions about how a car trade-in will be taxed for your small business, it's a good idea to consult with a tax professional or refer to the Internal Revenue Service (IRS) guidelines.

Happy Holidays from the Team at Taxstra

Clients of Taxstra,

We wanted to take a moment to thank you for entrusting us with your accounting and tax needs. It has been our pleasure to work with each and every one of you as a part of David J. Hensley CPA, Inc., and we are grateful for the opportunity to help you grow and succeed in your businesses at our new company.

We know that running a business or filing your individual taxes can be challenging, and we are honored to be a part of your team. Your support and confidence in us mean the world to us, and we are committed to providing you with the best possible service and support.

As we celebrate the holiday season, we want to wish you and your loved ones a very happy and healthy holiday season. We hope that this time is filled with joy, laughter, and love, and that the New Year brings even more success and happiness.

From all of us at Taxstra, thank you again for your business and your friendship. We look forward to continuing to work with you in the coming year.

Merry Christmas and Happy Holidays!

Sincerely, The Taxstra Team

An accountant's Christmas Wish List

 As an accountant, Christmas is a time to celebrate the end of the tax season and spend time with loved ones. But it's also a time to make a wish list of the things that would make the job even better. Here are a few items that might be on an accountant's wish list for Christmas:

1. A high-speed, accurate, and reliable tax preparation software. Tax season can be hectic and stressful, and having the right tools can make all the difference.

2. A comfortable and ergonomic office chair. Spending long hours in front of a computer can be hard on the body, and a good chair can help reduce strain and discomfort.

3. A subscription to a professional development program. Keeping up with the latest tax laws and regulations is critical for accountants, and a professional development program can provide valuable training and resources.

4. A noise-canceling headset. Working in a busy office can be distracting, and a noise-canceling headset can help accountants focus on their work.

5. A well-stocked office snack drawer. Snacking can help boost productivity and keep energy levels up during long days at the office.

6. A quality calculator. Accurate calculations are essential for accountants, and having a reliable calculator can save time and reduce errors.

7. A set of organization tools. Staying organized is key for accountants, and a set of tools such as folders, labels, and binders can help keep everything in order.

8. A personalized coffee mug. A personalized coffee mug can be a fun and practical gift for an accountant. It's a great way to show some personality and make the office a little more enjoyable.

   9. A heartfelt thank you. Above all, an accountant may appreciate a heartfelt thank you from their clients and colleagues. A simple gesture of gratitude can go a long way in making their job even more rewarding.

   10. A relaxing spa day. After a long and busy tax season, an accountant may appreciate a day at the spa to unwind and recharge.

The top deductions for small business owners

As a small business owner, it's important to take advantage of every tax deduction available to you. Tax deductions can help reduce your tax liability and save you money on your taxes.

At Taxstra, our team of certified public accountants (CPAs) has years of experience helping small business owners identify and claim tax deductions. In this article, we'll explain the top tax deductions for small business owners.

1. Home office deduction

If you use a portion of your home for business purposes, such as an office or workshop, you may be eligible for the home office deduction. To claim the home office deduction, you must use the space exclusively and regularly for business purposes, and the space must be your principal place of business or a place where you meet or conduct business with clients.

The home office deduction allows you to deduct a portion of your mortgage interest, property taxes, insurance, utilities, and other expenses related to the business use of your home. The amount of the deduction is based on the percentage of your home used for business purposes.

2. Business vehicle expenses

If you use a vehicle for business purposes, such as driving to clients or meetings, you may be eligible to claim a tax deduction for your vehicle expenses. You can either claim the actual expenses of operating your vehicle, such as gas, oil, and maintenance, or you can use the standard mileage rate, which is currently 57.5 cents per mile for business travel.

To claim a deduction for your vehicle expenses, you must keep detailed records of your business miles, including the date, destination, and purpose of the trip. You must also have a written record, such as a logbook, to support your claim.

3. Business equipment and supplies

If you purchase equipment or supplies for your business, such as computers, office furniture, or inventory, you may be able to claim a tax deduction for the cost of these items. The amount of the deduction will depend on the type of equipment or supplies you purchase, and the method you use to claim the deduction.

For most equipment and supplies, you can claim a deduction in the year you purchase them. However, if you purchase more expensive items, such as machinery or buildings, you may need to claim the deduction over a period of time using the depreciation method. An accountant can help you determine the best method for claiming a deduction for your business equipment and supplies.

4. Employee wages and benefits

As a small business owner, you may be able to claim a tax deduction for the wages and benefits you pay to your employees. This includes salaries, bonuses, and health insurance premiums, as well as contributions to retirement plans and other employee benefits.

To claim a deduction for employee wages and benefits, you must have detailed records of the wages and benefits you pay, including pay stubs and tax forms such as W-2s and 1099s. You must also have a written record of your employee benefits, such as a summary plan description for a retirement plan.

5. Business travel and entertainment

If you travel for business purposes, or if you entertain clients or customers, you may be able to claim a tax deduction for your travel and entertainment expenses. You can claim a deduction for the cost of transportation, lodging, meals, and other expenses related to your business travel. You can also claim a deduction for the cost of entertaining clients or customers, such as tickets to a sporting event or a meal at a restaurant.

To claim a deduction for business travel and entertainment, you must keep detailed records of your expenses, including receipts and other supporting documents. You must also have a written record of the business purpose of the travel or entertainment, and the name and business relationship of the person you entertained.

At Taxstra, we are dedicated to helping small business owners claim tax deductions and save money on their taxes. If you need help identifying and claiming tax deductions for your small business, contact us today at 217.788.0750 or visit our website www.taxstra.com. As a top accounting firm in Springfield, IL, we are committed to helping businesses succeed.