C Corp Audits

C Corp Audits

In this video, Anthony and Claudine discuss the chances of audits for corporations. We also talk about some situations that would tend to invite scrutiny for an audit from the IRS, like: ◦ Excessive meals and entertainment ◦ Auto expenses too high ◦ Loans to officers instead of payroll ◦ Claiming 100% business use of a vehicle if there is not another vehicle for personal use ◦ Unreasonably high salaries paid to shareholders who are also employees – less profits ◦ No interest paid on officer loans ◦ No interest received an officer loans ◦ Retained earnings from prior period not properly rolled to current year ◦ Forms 1096/1099 were not issued timely ◦ Corporate balance sheet doesn’t balance ◦ Profit margins are inconsistent with prior years ◦ Corporation with retail business involving inventory...but you have zero ending inventory ◦ Expensing too much officer life insurance - If you need any assistance setting up a C Corp, or are currently being audited, contact us. We're here to help. www.irsmedic.com The Law Offices of Parent & Parent, LLP Real Tax Attorneys for Tough Tax Problems With clients from around the world 888.727.8796 http://youtu.be/zaiHUfYIC4s IRS Medic