How to prevent getting audited

Sponsored content Dec 21, 2016 Hamilton Spectator

Common Cents Accounting in Hamilton provides their clients with a wide range of expert and affordable accounting services.

Being audited can be extremely stressful, and if you’re self-employed, own a business, or have a commission-based income, or if there have been errors on your returns in the past, it automatically increases your odds of being pegged for an income tax audit. There are a number of things that can send up a red flag to the Canada Revenue Agency (CRA) and trigger a tax audit.

If there have been major deviations from previous tax returns, like sudden big expenses, they may want to see your receipts. Make sure you have the documentation to explain the increased spending. Tax rules regarding business losses are complex, and while losing money for the first few years of being in business is normal, continued losses when you’ve been in business for five years or more will likely cause the CRA to take a closer look. If the CRA compares your filing against similar businesses and what you’re reporting doesn’t blend in with the standard for the industry, it could trigger a CRA reassessment or audit.

No one wants to pay taxes, but penalties for knowingly making false claims can be substantial. Report all taxable income, keep all of your personal expenses separate from your business deductions, and make sure to pay your taxes on time.

Common Cents Accounting is well versed in preparing and filing tax returns for businesses of all types and sizes. They understand the tax audit process and how to prevent being audited. Their team of professional accountants also stay current with new tax credits you may not know about that could put money in your pocket.

For more information, contact Common Cents Accounting, located at 13 Greeningdon Drive in Hamilton. Call 905-388-5460 or email them to find out about booking a free consultation.

How to prevent getting audited

Sponsored content Dec 21, 2016 Hamilton Spectator

Common Cents Accounting in Hamilton provides their clients with a wide range of expert and affordable accounting services.

Being audited can be extremely stressful, and if you’re self-employed, own a business, or have a commission-based income, or if there have been errors on your returns in the past, it automatically increases your odds of being pegged for an income tax audit. There are a number of things that can send up a red flag to the Canada Revenue Agency (CRA) and trigger a tax audit.

If there have been major deviations from previous tax returns, like sudden big expenses, they may want to see your receipts. Make sure you have the documentation to explain the increased spending. Tax rules regarding business losses are complex, and while losing money for the first few years of being in business is normal, continued losses when you’ve been in business for five years or more will likely cause the CRA to take a closer look. If the CRA compares your filing against similar businesses and what you’re reporting doesn’t blend in with the standard for the industry, it could trigger a CRA reassessment or audit.

No one wants to pay taxes, but penalties for knowingly making false claims can be substantial. Report all taxable income, keep all of your personal expenses separate from your business deductions, and make sure to pay your taxes on time.

Related Content

Common Cents Accounting is well versed in preparing and filing tax returns for businesses of all types and sizes. They understand the tax audit process and how to prevent being audited. Their team of professional accountants also stay current with new tax credits you may not know about that could put money in your pocket.

For more information, contact Common Cents Accounting, located at 13 Greeningdon Drive in Hamilton. Call 905-388-5460 or email them to find out about booking a free consultation.

How to prevent getting audited

Sponsored content Dec 21, 2016 Hamilton Spectator

Common Cents Accounting in Hamilton provides their clients with a wide range of expert and affordable accounting services.

Being audited can be extremely stressful, and if you’re self-employed, own a business, or have a commission-based income, or if there have been errors on your returns in the past, it automatically increases your odds of being pegged for an income tax audit. There are a number of things that can send up a red flag to the Canada Revenue Agency (CRA) and trigger a tax audit.

If there have been major deviations from previous tax returns, like sudden big expenses, they may want to see your receipts. Make sure you have the documentation to explain the increased spending. Tax rules regarding business losses are complex, and while losing money for the first few years of being in business is normal, continued losses when you’ve been in business for five years or more will likely cause the CRA to take a closer look. If the CRA compares your filing against similar businesses and what you’re reporting doesn’t blend in with the standard for the industry, it could trigger a CRA reassessment or audit.

No one wants to pay taxes, but penalties for knowingly making false claims can be substantial. Report all taxable income, keep all of your personal expenses separate from your business deductions, and make sure to pay your taxes on time.

Related Content

Common Cents Accounting is well versed in preparing and filing tax returns for businesses of all types and sizes. They understand the tax audit process and how to prevent being audited. Their team of professional accountants also stay current with new tax credits you may not know about that could put money in your pocket.

For more information, contact Common Cents Accounting, located at 13 Greeningdon Drive in Hamilton. Call 905-388-5460 or email them to find out about booking a free consultation.