Guidant Financial Group Blog

Seven Common Taxpayer Mistakes

Wednesday
Please read this before you mail your tax return to the IRS! Yes – Guidant Financial Group is a leader in small business financing and self-directed IRAs but it is “tax time”…and we’re all thinking about taxes!

We searched the web looking for consensus on the top mistakes taxpayers make and, although there are more sources, we liked America Online’s simple report. We have included a summary of the mistakes but feel free to check out the original article! We took out seven…but there are 5 more for your enjoyment.

  • Mistake #1 – Bad Math: Math mistakes are one of the leading reasons the IRS adjusts returns. Double-check all figures on your return and use a calculator!
  • Mistake #2 – Bad Addresses: If you choose to file a paper return, be sure to use the address label off the tax return the IRS sent you.
  • Mistake #3 – Incorrect Tax Table: If you use the IRS tax tables, be careful to use the correct column for your filing status.
  • Mistake #4 – The Wrong SS#: Double-check this…
  • Mistake #5 – Bad Routing Number: Many use direct deposit as a way to get their refunds…make sure you give the IRS the right information.
  • Mistake #6 – Failure to Report All Income: Don’t try and hide it – under reporting income can lead to criminal charges.
  • Mistake #7 – Send the Check: If you owe money, don’t forget to send the check!

Guidant is not a Tax Firm and this post was not written by a tax professional. Please check with your tax advisor before making any tax-related decisions. (Our attorney’s made us write that…but it’s true!)



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posted by Guidant Financial Group @ 12:01 AM 0 comments

10 Ways to Cut Business Costs

Businessweek.com recently published a very relevant story called, 10 Ways to Cut Business Costs. There is no doubt that many small businesses are looking for ways to cut costs and improve profits during these turbulent economic times. This article identified great ways to save money by:
  1. Reducing energy use
  2. Allowing staff to telecommute
  3. Ask for discounts from suppliers for paying invoices early
  4. Curb your travel expenses
  5. Renegotiate your office lease OR move
  6. Don't buy new
  7. Barter services
  8. Only hold pertinent inventory
  9. Clear your books of assets you no longer have to reduce your insurance bills and taxes
  10. Take advantage of tax deductions

Our version would have included a #11. If you believe your business had significant growth potential, you might consider investing in it's future by investing your retirement funds into the business without taking a taxable distribution....and eliminate the debt. Again, it's only prudent if you think the upside is significant. It is possible through the Guidant's 401(k). It's an interesting option to consider instead of small business financing!



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posted by Guidant Financial Group @ 4:38 AM 0 comments

Guarantee You'll Never Get Audited By The IRS...

Thursday

...just kidding. You can never really guarantee these things, but a recent Wall Street Journal article, Tips for Dodging an Audit, suggests that there are things that trigger audits...and the chance to win a FREE examination by the agency!

According to the article, the IRS audited fewer Americans last year than in previous years. However, there was a significant increase in auditees making more than $200,000 annually. The attention given to higher earners was a result of congressional pressure to crack down on tax-dodgers. The IRS audited over 130,000 returns from the $200K and up demographic, which is a 49 percent increase from 2006. There was particular interest in self-employed individuals who file a Schedule C (for sole proprietors) and deal in large amounts of cash.

What is triggering the audit? The article suggests that unusually high deductions in relation to income, discrepancies in data reported by you and your employer/financial institutions and tips by an ex-partner or spouse are common ways to get a personal meeting with the agency. Suspicion is also aroused by deductions taken on any activity that could potentially be from a hobby rather than business.

Here are a couple of suggestions:
• Don’t ignore the IRS if you get a letter from them.
• Hire a professional to help you through an audit.
• Most importantly—only take legitimate deductions.


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posted by Guidant Financial Group @ 6:10 AM 0 comments
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