Free Webinar -'A New Irs Threat to Direct Sellers–Learn How to Protect Your Deduction

[esavvymom]

Wanted to pass this along....I will definitely be on this call! my business is so slow, I'd probably fall victim since my income is low (but my expenses have been also). Anyway, I've heard Ron speak before, and he's very good.

Worth your time to stay ahead of the IRS and prepared!

Join Steve & Special Guest Ron Mueller, MBA, Ph.D., Author of "Home Business Tax Savings Made Easy"

For a FREE Webinar - Offered at Two Times
"The IRS Threat to Direct Sellers - Learn How to Protect Your Deductions"

DID YOU KNOW?
IRS Auditors are being told to do whatever they can to DISALLOW some or all of your home-business tax deductions.

WHY?
Because that would add billions to the treasury (after all, that IS their main job, right?!).

HOW?
By trying to show that you do not have a "real business," or that you do not have a "profit-intent."

IS THIS "FOR REAL?"
Absolutely! The IRS has issued all auditors a 64-page Audit Guide that even lists the specific questions they are to ask you and the specific documents
they can require you produce.

NOTE: They will now routinely require one specific document that was only rarely asked for in the past. You MUST know what it is, and you MUST have it, or all of your legitimate hard-earned deductions could be lost.

We've Got You Covered...
RON MUELLER WILL SHOW YOU EXACTLY HOW TO PROTECT YOUR DEDUCTIONS

Our good friend and home-business tax expert Dr. Ron Mueller has agreed to present two LIVE web-based briefings exclusively for Lifeline Coaching & Education.

Both webcasts will contain the same information, so just choose the one most convenient for your schedule.

Registration is free, but required, because that's how you'll receive your logon information and call-in number.

NEXT WEDNESDAY, Dec 5, 2012
5:45 PM Pacific / 6:45 PM Central
7:45 PM Mountain / 8:45 PM Eastern
REGISTER NOW

NEXT THURSDAY, Dec 6, 2012
9:15 AM Pacific / 10:15 AM Central
11:15 AM Mountain / 12:15 PM Eastern
REGISTER NOW

NO COMPUTER ACCESS?
No problem! Upon registration you will receive a call-in number you can use to join either webcast from any telephone, anywhere.

DOES THIS APPLY TO YOU?
Nearly every direct seller in in a legitimate "home-based business." Home business owners qualify for more tax deductions than any other category of taxpayer, according to our speaker, Dr. Ron Mueller. The information Ron will share next week WILL apply to you if you are selected for a random audit, and there's no way to know in advance if or when you will be audited.

So, YES, this DOES apply to you because there is ONE easy action you MUST take to protect yourself, and you will learn exactly what to do on this web-briefing,

Both live briefings will cover the same material.
Select the one most convenient for you.

YOU DO NOT WANT TO MISS THIS BRIEFING!

Love and success,

Steve Q. Wiltshire, CEO
Lifeline Coaching & Education, Inc.
Steve Wiltshire - Lifeline Coaching & Education, Inc.

 

[monicag]

Re: FREE Webinar -'A New IRS Threat to Direct Sellers–Learn How to Protect Your Deduc

Isn't that just like the IRS (government) to try and screw us! Maybe we should all just depend on the government to support us.....after all that seems to be what their leaning towards.

Sorry, that's my personal opinion/rant!

 

[Chefjpeak]

Re: FREE Webinar -'A New IRS Threat to Direct Sellers–Learn How to Protect Your Deduc

Just got registered. Thanks so much for sharing this link!

 

[ShellBeach]

Re: FREE Webinar -'A New IRS Threat to Direct Sellers–Learn How to Protect Your Deduc

Not sure if this is something new. When I started PC six years ago, I wasn't sure how to file, so I used an accountant that first year. She told me a sure-fire way to get audited was to claim home office expense. I'd love to write off a portion of my mortgage & all my utilities for PC, but that won't fly.:thumbdown:

Not that I write off any home office space, but I'd love to hear about that one document they haven't asked for in the past, but are going to ask for now!

 

[Kandi2candy]

Re: FREE Webinar -'A New IRS Threat to Direct Sellers–Learn How to Protect Your Deduc

Thanks for sharing!

 

[byrd1956]

Re: FREE Webinar -'A New IRS Threat to Direct Sellers–Learn How to Protect Your Deduc

Did anyone join this call and what did you think?

 

[esavvymom]

Re: FREE Webinar -'A New IRS Threat to Direct Sellers–Learn How to Protect Your Deduc

Did anyone join this call and what did you think?

Mine is for tomorrow.....

 

[esavvymom]

Re: FREE Webinar -'A New IRS Threat to Direct Sellers–Learn How to Protect Your Deduc

So I'm finishing up listening to this.
Basically, he was saying that a BUSINESS PLAN is a big key. Auditors will look at a home based business (HBB) and determine if it is a "hobby" (no-profit, and not working towards a profit), or if it is a profitable business or at least working towards becoming profitable.


9 point checklist – hobby vs business

1. Amount of time and effort into the business. Little time is not very positive for convincing
2. Do you depend on the income?
3. Do you have losses? Are they beyond your control, or are you in start up phase (could be a few years)?
4. If you haven’t been profitable in the last several years, have your changed your method to improve your profitability
5. Does the taxpayer or advisor …..
6. Have you made a profit in the past?
7. Does the activity make a profit in some years?

If you can prove you are in a profit making direction, you can keep the deductions, but if not (hobby), then you only get a break-even deductions (up to your income made).



Taxpayer should have a formal written business plan!

This could make the difference in the eyes of the auditor. It should have a planned forecast of activities and when you are going to become profitable.

Auditors are told to not request the business plan in the initial audit notice. They don’t want people to have a “canned” plan….so they will ask for it during the initial in-person interview and the follow-up. They want to surprise you. Most people think you’ll only have one meeting, but you actually have more than one. It’s basically a way to put you on the defensive, shake your confidence, and catch you off guard.



Suggested interview questions given to an auditor:

1. Do you have a business plan?
a. Yes – bring it
b. Was the plan followed if you have one?
c. If losing money, was the plan modified to adjust profitability?
d. What is your niche?
e. Where are you located/ Geographical area? Demographics/target audience?

He gave a few examples of business who may have had a great business plan, but terrible records, or the plan was just for the purpose of keeping the deductions (not actually being used for the business). Or one fellow who had impeccable records, but wasn't working his business in the eyes of the court to actually make a profit. So sometimes it is in the eyes of the judge/auditors.

But basically, having a business plan (not a CANNED version) that answers those questions I listed above under the business plan question. And keep meticulous records.

year to year, adjust your business plan to fit your business. If you intended to make a profit in a certain year, but didn't, adjust it!


SOooooo....if I were audited anytime soon, I'd be screwed. ;-)

He did also say that if your business is deemed a hobby, you would be limited to deductions up to the amount of your income. So if you only made $700 in commissions, you could only deduct up to that amount. If you take more, then you are liable for the taxes (and open up to previous years also!). If your business is deemed a true profitable business, or a business ACTIVELY trying to make a profit, then you can claim all of your deductions, even if it is more than you made.

Hope that helps!
Do your homework though. I am not advising any one way or the other.
He did have an offer that has a Business Plan software where they help you write a business plan. You answer some questions and they help write your plan, then they review it with you. It costs $287 for the whole deal. They were offering it as a special for $187 to the call attendees. Here is a weblink with more info: http://ProtectYourTaxDeductions.com


Personal note:
The government certainly is not for small-business. They look for anyway they can to get all the blood they can get from you.

 

[esavvymom]

Re: FREE Webinar -'A New IRS Threat to Direct Sellers–Learn How to Protect Your Deduc

Oh, and for anyone who has no clue about tax deductions, he's offering another webinar next week. I'll post the info for that once he sends it out.