The Small Business Tax Help Blog

Archive for December, 2008

News in brief

Here are a selection of brief news items from this week’s paper edition, and possibly a few news briefs that didn’t make it in the paper.

JCCC Board of Trustees Meeting, June 16th, 2009

Republican candidate for governor Rick Snyder proposes elimination of Michigan Business Tax

His proposed replacement is a 6 percent flat corporate income tax.

FG Moves to Integrate ID Card Schemes

The Federal Government said it would commence the integration of all existing identity card schemes of the Independent National Electoral Commission (INEC), Federal Road Safety Commission (FRSC), National Health Insurance Scheme (NHIS), Nigerian Communications Commission (NCC) and other similar agencies.

FeinSearch.com – Verify Tax IDs, Locate Tax IDs instantly, EIN Search ,Federal Tax ID,Append EIN

Question: Trying to pay estimated tax for having worked with 1099?

From late last year, I made only about 6 thousand bucks. I am trying to claim business related expenses, but don’t have all the receipt. However, my credit card statements show transactions that I’m missing the receipts for. Would it be advisable to use what’s on the credit card statements to claim the deduction OR is it a one way to get my a$$ fried and have tax evasion charge on my record?

Also, is there anyway to claim cash transaction for business related expenses, but you do’t have the receipts.

Answer: If you are to be taken seriously in case of an audit, documentation is required to show legitimate business expenses. Credit card statements can support business expenses.

Just because an expense is on a credit card doesn’t document that it is a business expense. For example, if it is a meal, you would need to have a record of who was at the meal and the business purpose of the meal. If it were an airplane ticket, you would need to have a record of the business purpose of the trip. You would need this additional documentation even if you had a receipt.

If you had a credit card statement for a specialized piece of equipment used only in your business, or for consumable products used only for your business, that would probably be acceptable documentation.

A cash transaction may be acceptable if you had your own record made at the time of the transaction as to what business purpose the transaction served. A large cash transaction would likely require a receipt. Constructing records of cash transactions after the fact would not be acceptable.

Dracut brothers, woman face charges in alleged tax evasion

BOSTON — A pair of Dracut brothers were indicted for tax evasion and conspiracy yesterday after prosecutors say they tried to hide about $2 million of income from an excavation business they ran until 2006.

BREAKING NEWS – More Taxes, More Invasion, More Scrutiny with Barbara Goldsmith

Question: Personal money vs business money?

I am just wondering how it works when you have your own business The money that that business Generates is it personal monet like for example to do what you want with it?
because I know someone that has a business They have no one doing the books and
they are spending money on things that are totally not business related Ie ;Quad, quad lift kit, ;lift kit on half tonne
going on holidays to another province Just wondering what kind of trouble that person is gonna be in if any come Income tax time ?

Answer: They are going to be in deep sh–. They should have a separate business checking acct – used only for business expenses and all businees revenue should be deposited in that acct

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