Be Good To Your Money Bulletin http://ezezine.com
ON THE AIR
Listen LIVE tomorrow morning (3/18) at 8:30 AM (CST) on WYLD in New
Orleans. Go to www.wyldfm.com and click on "Listen Live" to hear my
next radio broadcast. TOPIC: Estate planning for parents with young
kids
With the Anna Nicole Smith saga in the news, daily, I feel this is a
topic we need to revisit. My next newsletter will contain a checklist
that goes with the show. Make sure that you and everyone you know,
with small kids, tune in.
REDUCE THE PAIN OF AN AUDIT
One of the best ways to avoid an unwanted call from the IRS is to file
your return on time. Other ways to keep auditors at bay, or at least
get rid of them quickly if they do show up, is to keep good records.
The IRS tends to look more closely at things that require
substantiation. If you're self-employed or use your car or cell phone
for business, the IRS will want proof.
And know the rules. In the case of mobile phones, for example, for the
device to qualify as a business deduction, you must use it more than 50
percent of the time for business purposes. If not, it's a personal,
nondeductible expense.
And while high-income filers are a target because the IRS expects to
get a bigger return on investigations in the top tax range, less
wealthy taxpayers also face scrutiny.
In fact, a tax break designed especially for lower-income filers, the
Earned Income Tax Credit, gets closely examined each year. The EITC is
complicated and requires a lot of authentication. If you file for this
credit, be sure to have all the required Social Security numbers and
proof that you're eligible in case the IRS questions your claim.
Your records are key to reducing the pain of an IRS audit.
www.LisaFrye.com
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