Yes, a benefits plan audit could happen to you

| Business Briefs

By Bennie the Bean Counter     Many business owners worry about an income tax audit. But, if you sponsor an employee benefits plan, the IRS could audit it as well. Here are some common questions that plan administrators and sponsors might ask about plan audits. Where’s the bull’s-eye? The IRS targets plans in one of four ways: As part of a special IRS initiative focusing on a specific issue On a tip-off After discovering questionable or unusual items on a plan’s return By Read more [...]

What 2015 tax records can you toss once you’ve filed your return?

| Tax Briefs

By Bennie the Bean Counter     The short answer is:  none. You need to hold on to all of your 2015 tax records for now. But this is a great time to take a look at your records for previous tax years and determine what you can purge. The 3-year rule At minimum, keep tax records for as long as the IRS has the ability to audit your return or assess additional taxes, which generally is three years after you file your return. This means you likely can shred and toss most records related to Read more [...]

What can a criminal do with your stolen business’ EIN number?

| Business Briefs, Business Miscellaneous

(Part 2 of 3 in the Business identity theft series) A great deal!  How would you respond to receiving an $800,000 notice of deficiency requiring immediate payment for unpaid payroll taxes for 100 employees who never even worked for your company? This scenario is exactly what happened to a Captain D’s Seafood franchisee in Georgia. Thieves stole his Employer Identification Number (EIN) and used it in a tax refund scheme reporting more than $4 million in fictional salaries to the IRS and state Read more [...]