DANIEL HENN, CPA, PA

What money habit do you need to break?

Will you end up in the “likely to get audited” category in 2025? The IRS’s prime targets (based on 2024 numbers) are high-income earners, business owners, and those dealing with complex finances. But the IRS is also trying to uncover broader financial wrongdoing – and they’ve got their eye on areas like cryptocurrency transactions, offshore accounts, and fraudulent business practices. If you find yourself one of the IRS’s most-wanted, don’t panic. We’ve got your back. We can help spot the audit triggers in your current situation, and help you make a plan to lower your risk. Do your finances have any audit-worthy red flags?

You need to audit YOURSELF. Why? Because the IRS can audit your business for I-9 compliance because of random selection, complaints, or the nature of your industry. Whatever the reason, you need to be prepared. Do a self-audit to make sure you’re totally I-9 compliant. Check that all your employees have I-9 forms and that all the information on them is accurate. You want to beat the IRS to the punch here – BEFORE they start dealing out consequences. If you’ve ever done a self-audit, did it reveal something unexpected?

If we could wave a magic wand and fix one thing about your finances, what would it be?

Filing your taxes can feel like walking a tightrope ... one (unintentionally) wrong move, and you’re in trouble. But you can breathe easy: You’ve got a safety net underneath you. We’re here to catch you if you find yourself in trouble with the IRS. In case the worst happens, you’ve got support you can trust. What about your tax situation is currently keeping you up at night?

Excuses that DON’T count for failing to file and pay your taxes: 1. My dog ate my documentation. 2. I wasn’t feeling well…every day of tax season. 3. I thought the deadlines didn’t matter because of the IRS layoffs and budget cuts. 4. I heard the IRS is going kaput, so I thought I was off the hook. Yes, there’s lots of IRS buzz happening in Washington right now. But so far, tax deadlines are still on schedule. Which means you need to STICK TO that schedule. And no matter what talk there’s been about nixing the IRS (which is JUST a proposal right now) – you need to file your taxes this year. Because failing to file/pay comes with significant costs. Don’t let your financial wellbeing get hijacked by what-if scenarios. Practice good tax strategy, and let the IRS chips fall where they may. What’s currently standing in the way of you getting your taxes done on time?

Things likely to trigger an IRS audit for you this tax season… ??Failing to report all your income. ??Earning a large income (500K or more). ??Mismatching tax forms and reported income. ??Excessive or false deductions. We don’t tell you this to scare you, but to prepare you. If you hear from the IRS, don’t panic – we’re here to guide you through the process and protect your financial well-being. So if you fall into one of these categories, let's talk.

Solopreneurs and small businesses: Because of the difference between payroll tax and what tax an independent contractor is expected to pay, you need to clearly lay out how you hire for short-term work. (This is to avoid your being penalized later if the IRS thinks they acted more like an employee than a contractor.) A good starting point? Draw up an actual "Independent Contractor Agreement" to make everything clear. Be sure they file Form 1099 with the government, and be ABSOLUTELY sure you tell the IRS what you paid them. We know dealing with independent contractor taxes can be a pain. But getting that extra help for your business is well worth it. How has hiring independent contractors impacted YOUR business?

True or false? "The one thing that unites all human beings, regardless of age, gender, religion or ethnic background, is that we all believe we are above-average drivers." - Dave Barry

It’s here – your tax bill from the IRS. You open the envelope, skim the letter, and ... your heart drops. The number staring back at you is WAY bigger than you expected. How are you supposed to come up with that kind of money? You might feel stuck, unsure of what to do next, but the truth is: You don’t have to face this alone. There are ways to make your bill more manageable, and we can help you find them.