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Episode 130

6/1/23

Topic: 10 Ways to Get a Tax Audit

Guests: Dan Gordon & Donnie Shelton



In this episode we discuss:

  • Why Donnie says taxes are one area of business where you do not want to tax risks

  • Common types of tax audits you could experience: income, payroll and sales and use

  • The three things that could prompt an audit

  • Where many operators cross the line when running expenses and deductions through the business

  • Tax credit and incentives some operators abuse

  • Why it's important to make sure you use a legitimate payroll company

  • The list of 10 ways to get audited

  1. Income tax: Income reporting

  2. Income tax: Deductions and expenses

  3. Income tax: Tax credits and incentives

  4. Payroll audit

  5. Payroll: Worker classification

  6. Sales and use: Nexus determination

  7. Sales and use: Taxability determination

  8. Sales and use: Exemption certificate management

  9. Sales and use: Sourcing rules

  10. Sales and use: Cash transactions

Resources mentioned:

Notable: "As a small business person, your time is better spend figuring out how to increase sales and efficiency rather than trying to find tax credits." —Dan Gordon

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