AccountingToday posted the article below on problems the IRS is having processing taxpayer payments. At the beginning of COVID-19, the IRS furloughed tens of thousands of employees. I had read articles about how the IRS couldn’t handle the volume of mail they received. As a result, they had leased warehouses to store unopened mail.
Company vs. Personal Expenses
Business Expenses vs Personal Expenses
I could name this article, “How not to draw attention to yourself” or “How to fly under the IRS radar”. I plan to outline various items that will help business owners to operate on the up and up and keep from drawing attention to the business and avoid a possible audit and penalties.
Having an S Corporation or LLC has many tax benefits. If a business owner uses the business to purchase personal items, this is referred to as “piercing the corporate veil”. The IRS views this as the business owner circumventing paying the appropriate taxes. If the IRS determines that the corporate veil has been compromised, they may implement fines and dissolve the corporation.
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