Don't Get Audited with these 10 Tips - IRS Is Coming
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- เผยแพร่เมื่อ 19 มิ.ย. 2024
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Uncover essential real estate tax strategies with Mark and Mat in this exciting podcast episode. Elevate your financial journey with valuable insights for current and aspiring real estate owners. Don't miss out!
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0:00 Introduction
1:31 Filling an Extension, Good or Bad?
2:33 Round Numbers?
3:52 Home Office Deduction?
5:44 Paying Workers Under the Table?
6:45 Taking Dining and Travel Write-Offs?
7:30 IRS Letters
8:43 1500% Lower Audit Risk w/ an S-Corp!
11:53 IRS Payment Plans
13:55 Should You File Your Own Return?
15:30 Home Office Deduction with an S-Corp
17:36 Standard Deduction Question
20:35 Payroll in Your S-Corp
21:38 Write-Offs You SHOULD Take
24:10 Should you Add Comments to your Return?
24:22 Be Aware of Industry Averages
27:06 Small Tax Return Makes it Hard to Get a Loan
28:26 $80B to IRS is Going to Affect Business Owners
30:25 Do You Need an LLC for Rental Properties?
33:44 New Vehicle Tax Advantages - บันเทิง
Mark thank you for sharing your knowledge with us!
06:06 "the IRS is sick of under the table crap" , well....Mark, WE are sick of the IRS period. The IRS could go away tomorrow, and we'll all be better off.
Cant we just plea the 5th if we receive and audit?
Reality check there sir. Your former employers are hiring 87,000 new IRS auditors. Brace for impact.
@@georgemckenna462 well...well... then they should probably be armed, with plenty of ammo, right?
Lol sure, love this comment!!
Armed with lots and lots of envelopes with notices stating, you are being audited...
As you must know the US. Government needs to make up for for all those trillions they printed to the Fed. The new IRS auditors will naturally go after the low hanging fruit; those least able to defend themselves. Those just getting by, the Uber driver, the waitress and yes the ex marine trying to make a go of it in the private sector. I fear that even by the standards of a seasoned solider, the destruction will be breath taking, so please take it seriously.
I truly do, wish you the best sir.
Thanks for your help with all the information your great!
Love your tips, you are the best I found over the internet in this topic
So glad that I found your channel!! :) Thanks for all the information.
Long live Mark Kohler and all who serve him!!! You have saved/made me thousands!!!!
I just stumbled on this site. I will definitely listen to these videos in my spare time. Thank you for the information.
I LOVE the Trifecta! Every time I see this I get excited because NO ONE is talking about this!
We really need is 87,000 more border patrol agents and to enforce our immigration laws, not allow these people to illegally flood in here and spread out across the country, most never to be seen again.
Far is the IRS, it should be eliminated, not expanded. Eliminate it and replace it with the ”Fair Tax.” There was a book written on the subject and it makes total sense!
Can I have a book? 😃
What immigration have to do with this, he talking about IRS
@@pierlouis7325 agreed 💯
Fair and Tax are 2 words that should never be used in the same sentence.
@@pierlouis7325 The government needs to collect more tax money to feed and support more illegal immigrants. Easy to understand!
You need 87,000 IRS agents to streamline the tax code.
Loving your information,Debra
I am grateful for the information you share. I like the idea of paying less in taxes. The charitable trust; I will be looking into that one for starters. When I heard you say that the money is still able to be invested, I imagine any increase would affect the amount I was able to draw out yearly? Did I understand you correctly?
This is great! Thank you.
Thank you very much!
Thanks for sharing!
Thanks for dropping these jewels.
Love you Mark!
I love your show , thank you so much .
So glad to hear that you are building a network of tax preparers!!
Great Video as always Mark! I so want to read that book;)
Fantastic information. Thanks for the advice!
Thanks! So glad you enjoyed it!
Thanks Mark for sharing your wisdom and helping fellow Americans out!
Mark, yes...yes they do call you at home. Once I was watching TV a call came in and it was an it's technician. I had made an $11.mistake. he didn't asked for my soc sec or anything, told me to wait for a letter and then pay the eleven dollars. The letter came in from IRS and I paid. See how they follow the poor and middle class. Meanwhile, the rich going stealing for 15 or more years.
Documentation is both a blessing and a curse. THE very docs you think will help can slap you back.
Thank u for sharing your Content is amazing on my way to a home based business
Love you guy! Thank You
Thank you for the information! I'm ready!
Best of luck!
learning a lot thanks
Thank you 😊
Thanks for the video
So glad you just showed up in my feed.
Edie, WELCOME! So glad you found this helpful!
wow... this is great information
Would love the book!
Thank you Mark for sharing this very informative information. This was very helpful!
I am so happy that you enjoyed it!!
I just bought one of your books! Cannot wait to get it! You're the best!
I am so excited for you, you're gonna love it!!
Thank you. I have learned a lot today.
Anytime! I love helping people! If you're interested in learning more about real estate and taxes, I have a summit coming up soon, and would love if you could attend. Follow this link to buy your ticket: realestatetaxsummit.com/?TH-cam&Comments&Real+Estate+Tax+Summit+YT
The way I’m thinking on this is they want to keep track of every dollar a lot more closely now, what’s being earned against what is being spent, and keeping track on ownership of certain things is key, housing, cars, and other things. Not sure if they can keep track of every dollar that’s spent, not even sure if it’s feasible, but I’m sure they’ll try.
Good information thanks
I CAN'T WAIT TO JOIN THE PROGRAM
Great information. One thing you didn't mention is, you must show a profit over expenses. If you made less than your writing off ,that is a big red flag to the IRS . I own a carpet cleaning company and my status is sole proprietor. When you talk about round numbers I kinda get in that loop a little only because I charge my client's a set amount per service. We are an in home service and our services are non taxable. So my billing doesn't have cents only round number's. But everything else, expenses, fuel, materials etc. Are never round number's. I've had my company for going on 19 year's and have never owed taxes nor ever been audited . The only thing I wish is that I made a little more money over the last 3 year's due to the pandemic. I'm hoping I don't get red flagged due to not making a lot of money , lord knows I want to make more money but it's a rough road in my business when people aren't having my services done because they don't want people in their home's during a pandemic. Last note, remember even if you didn't make a whole lot during the year , show a profit.
Great info!
This is awesome, thank you.
Glad you liked it!
Great content To stay out of trouble.
Lauren, so glad you found it helpful!
excellent advice, I hit the like and sub button
Thank you. You rock.. im calling your company when im ready
So glad you enjoyed the content! When you're ready, here is the number for the firm! 888-801-0010
Hey Mark, where do we go to find the average expenses per NAICS industry code?
Thank you
You always have good stuff on your videos!!!
I am SO glad that it's helpful! Thanks for watching!!
Mark you are so awesome... and I love the way you present the information... I will be calling your office...
This is good
Thanks Joe!
How to prepare for a tax audit -
(1) The day you receive the audit notice - STOP changing clothes - DO NOT shower or bath.
(2) Collect all receipts and documents - wad them into neat tight balls of paper - file them neatly in a kitty litter box with the litter in the box.
(3) The night before the audit - eat - baked beans, lima beans, broccoli, Brussel sprouts, asparagus, Limberger cheese, sardines, 90% Dark Chocolate, and drink beer.
(4) Once you arrive at the IRS office - take a laxative (don't excuse yourself during the audit, just soil yourself during the audit).
(5) If you have one - bring your emotional handicap assistant dog and give the dog a laxative.
(6) Once inside the office build be as accidentally clumsy as possible and accidentally knock over plants and shelves, etc.
(7) Once seated in the auditor's office - relax and stretch your legs and if possible accidentally kick the plug to their computer from the wall receptacle.
(8) Be sure and politely use your free speech and ask friendly questions like for example, "Before your mother died from licking food stamps, did she know you had become a tax whore?"
That should do it - most likely - you'll never be audited ever again.
🤣🤣🤣🤣
Great info, thanks so much.
No problem!! Glad that I can help!
Thank you for the valuable information.
Of course! Thank you for watching!!
Fantastic advise, great video!
Glad you enjoyed it!
Man, this was needed information thank you!
I am SO glad that I could help!
@@MarkJKohler After watching your video the other day I made an appointment with my CPA to ask a few questions. The first was when to move to an S-Coup as I’m already at 45,000.00 in net income. The other was can I take the new truck that I purchased this year and deprecate it inside of my bussed or do the actual expense method I should say. He said that I couldn’t because the vehicle was purchased under my personal name and not my business. I fell I use it 85% for business use. Does this make sense to you? The new truck cost 80,000.00
It will be years before the IRS is in a position to audit more returns. A strong regional CPA firm I share a few clients with had to get rid of some of its clients because it could not find enough qualified people to work there. Plus the IRS computer systems are ancient so they're going to crash if 87,000 more people try to log in. Will take years just to upgrade those. Don't worry about the returns you've already submitted.
Good to know !
I’ve thought the same. Every business in every sector is struggling to find employees at any level and the IRS is just going to wave a magic wand and 87k qualified people will appear. I’m just not believing it. Maybe they get 5 to 10k. Maybe 20. I’ll be shocked if they find 20k. Where are these people going to come from!? People who want to work are already working somewhere. People who don’t want to work will continue to not want to work.
truth...they are literally 2 years behind, and getting worse every day.
IRS agents make a TON of money, guaranteed, and they have incredible benefits and retirements. Millions of people want that ironclad career. They will fill those positions immediately. And how will they pay 87,000 more agents? With constant, automatic audits of everyone. They are investing in new computer systems which send out letters automatically to take more money from everyone. Even if you do nothing wrong, you have to take time out of your busy life to waste on explaining to the IRS that you are innocent. It’s a total nightmare situation.
@@JohnSmith-ns6dp Well, not a ton. The median IRS agent salary is about $51,000.
Thank you Mark, do you think it is a good idea to segregate the ownership of the assets from the operations such as rentals. The Ops LLC will sublet and will run operations of the rentals from Asset LLC. Liabilities and risks normally come from operations. Thank you
So what is the best month to extend up to? September?
Informaton gold! I subscribed and will ask for a tax professional.
I’ve always thought that the home office deduction was a red flag for the IRS. Really doesn’t put me in the sorted category to closer look by the IRS?
Yay Mark Kohler Tax Preparers!!!
is there any tax deduction for gaining of stock trading beside capital gain or loss?
Best IRS tips ever thank you
Glad it was helpful!
What if you are using a foreign independent contractor? I can't issue a 1099. My accountant told me to put it under misc labor and expenses.
Mark I put in for an extension to the IRS rate at tax season. I have not heard anything or received a letter or anything like that what should I do
Cracked myself a Monster. Watchin this until it kicks in. Gotta do some things around the house, then work a few hours. But I love learning this so I can plan accordingly.
I'm glad you're enjoying my videos!
Thanks Mark, I am a fan!
You're welcome Abbi! I appreciate your support!
Just subbed. Thanks.
Per FL I can not LLC while renting and living at the property while keep my homestead status. Have you a work around for this?
So informative and funny at the same time, love this guy!!!
He wanders away from the point he's trying to make too frequently which makes it very time consuming to try watching his videos.
His books are great and he is very very smart, but he doesn't respect his audience's time at all.
ty!!!!!!!!!!!
Great tips Mark! Keep up the good work, Cheers!
Thanks!! I'm glad you're enjoying my content!!
@@MarkJKohler r u a Lib?
Thanks
No problem!!
You are Awesome!!
You rock!
Why are not the tax professionals reaching to your customers? Especially complex businesses etc.
I like the way you talk
Oh wow I need an EA hope you come to FL
Do you recommend er use a tax preparer or tax accountant
FYI: The IRS bought $696,000 in Ammo to arm their criminal division between March / June of 2022.
They've been doing that annually since 2011 .
🤔
Amazing 😎 gentleman!!! I I wishing my son some days he have a thought just like this gentleman ❤️👍😎
I need a book! 🤩
Kids payroll question - my 14 year old is helping cleaning a cars is she too young for payroll ? Would she have to file taxes at the age of 14 if it is above the $599 ( $600) . Please point me to right direction to read up more about it.
Thank you for the good information
Glad it was helpful!
@@MarkJKohler I listen to you often I have rental properties.
Hey Steve! I LOVE to hear that! Have you heard about my Real Estate Tax Summit?? You should seriously think about attending (virtually or in-person) I would love to meet you! You can buy tickets here:
realestatetaxsummit.com/?TH-cam&Comments&Real+Estate+Tax+Summit+YT
Why has the IRS required us to be accountants and save every receipt and other documents. This is becoming insane.
yes, this is silly. with digital documentation through expense, we really don't require "receipts" any more, it's silly that this is even still addressed. You could use an Amex card, and all your expenses are detailed out by tax category, this should be sufficient in any audit. Federal tax is voluntary anyways, "audits" shouldn't even be a thing. The IRS is lucky to get what they get out of most of us, They should have been thankful and remained quiet, before a president with some balls decides to champion the dissolution of the Agency.
that is the whole idea, the system is designed to make you insane and unfortunately it's working
@@splash4891 I'm not insane, I'm just really pissed off!
To be fair, there is no requirement to save receipts. There isn't even a requirement to file a federal return. Its your Accountant that pushed for receipts. Which is totally unnecessary for 90% of Americans because they don't have a business larger than a hobby.
@@JustAnotherJarhead that’s the most ridiculous thing I’ve heard since yesterday….tax evasion is real dude and now that you’ve posted it’s not, IRS AI can eventually find u
What if they send you a letter but your mail service never delivers it? Some places the postal service absolutely sucks like where I live. I know I never get all my mail.
what do you mean by if anything goes wrong with the property, they will come after you, who will come after you?
I like the flat percentage tax with no write offs. It will avoid loopholes and oddits
I have an S corp. The S corp Net 150k My payroll is set up at 5k per month can I also take draws. and can I also use my draws along with my w2 wages to contribute to my solo 401k
I will be looking for a tax person here in California soon. I have 4 rental houses all paid off. I do everything on turbotax right now. I might want to do some 1031 exchanges in the near future and do an llc or S Corp.
Hey Robby! My firm can help you with 1031 exchanges, as well as setting up some business entities. We have an office in Irvine, CA and would love to help out. Call (888) 801-0010 to get set up in a consultation!
In regards to rentals, is it best to have an llc set up first before buying a property or buying it personally then transferring to the llc?
Hey Tymm, everyone's situation is different, so it would be hard to give you a recommendation, without background. I would suggest that you call my firm to get set up in an appointment with one of my attorneys. Call my assistant Emily at (888) 801-0010 ext. 2065 and she will take care of you!
I would love a book
5:44 Issuing 1099's for hired contractors is critical. If you hire someone and don't issue a 1099, you're not getting a write-off.
25:00 You want to be under the radar, to be Jason Borne - just blend in, no one sees you coming.
27:00 Small tax return makes it hard to get a loan. Balancing act between showing profitability in your business and minimizing taxes.
29:00 Tips to keep above board
32:30 Start as an LLC and then graduate to an S Corp when the time is right.
33:20 Pay the damn IRS and move on.
33:44 Writing off a company vehicle
36:09 KEY TAKEAWAY: It's okay to write things off and be on top of it. There are loopholes that are legit and are not going to lose in an audit - but *you've gotta be the captain of your ship, you've gotta be your own damn quarterback.*
I’m requiring about your post about have a 1099 for a hired contractor. I’ve never heard of this before and I’ve used many and have always gotten a write off when I’ve sold a home that I’ve remodeled. Can you explain a little more on that? Good tips on your post so thank you for taking the time to write it.
@@patriotgrammy8632 Hi there, from what I've heard, it's legally required to issue a 1099 to anyone you pay more than $600.
It's essentially formal record keeping, from what I understand. So the IRS wants to see "proof" that you hired this person - because the income they earn "technically" should be taxable. If you pay somebody $25k under the table, for instance, and that person doesn't claim it as income (to avoid paying taxes on it) - but then you as the employer write off that $25k, it could result in problems. Because, technically the contractor should be bearing the taxation on that transaction - is from how I understand it.
@@christopherarmstrong2710 Thanks Christopher, that makes sense. I’ve mostly used a handyman anyway but I’ll keep this is mind if I ever do a serious remodel.
@@patriotgrammy8632 You're welcome! Glad it helped.
In the trifecta, how does the RLT &1040 relate to each other? Do you filed joint marries 1040 or is RLT filing 1040. I'm not following that part of the trifecta.
Thank you so much for getting back to me
No problem Jim!
Wow I need some one like you. What I am looking for is a consultant.
Can't they replace most of the IRS with software? Even though it's over the course of ten years these 87,000 agents will replace retirees and add new jobs. But its still an unnecessary waste of money to fund all of them going forward...
Does this mean that you have multiple tax filings?
I would love ur book
Hey Kim! We love giving out freebies on the live videos, but if you don't happen to win any, and you still want the book, here is the link to buy them on my website: markjkohler.com/all-products/
Make sure to turn on your notifications from me, so that you don't miss when I am going live!
So someone on social security that is not required to file even with less than 100 dollars interest income should file anyway by oct 15 ??
Are the books free?
good info
Glad it was helpful!
Little correction: IRS will call you on the phone but ONLY when your SS# is in the [“criminal”] collection division that’s after you ignored all their letters, never responded, moved and you don’t know that IRS is looking for you at your old address, never filed, never updated address, never paid any taxes, never made attempt to set up payment plan on due taxes, etc.,…. it will takes few years for this to happen but eventually they will be looking for you at the DMV, utilities, employers, Social Security, banks …and yes they will call you if they will get your phone number & it’s serious. So don’t ignore it because if they got your phone number they are on your tail. The normal conversation will be something like this: this is ‘Ms. Biden” (not true names, using aka) from the IRS collection division, they will tell you why they calling - you owe money to IRS for year such & such, how much, penalties, interest. They will try to verify your address, bank, employment, and ask you if you can pay it, file (whatever the case maybe), etc.,.. if you failed to file they will prepare taxes for you, take your income from W-2 reported to them minus the standard deduction and the rest will be taxable + penalty + interest. They will give you 90 days to pay it, eventually you can set up payment plan with the IRS. if you did not file you must tell IRS that you will file your own tax return with your normal deductions & whatever you have to put on your tax return minimizing amount due + penalties for failure to file + penalties for failure to pay + interest the IRS will assess it.
There is lots of to it, it takes a book to tell you all but the point is this - yes the IRS collection division will call you but you will know that’s it’s them because you failed to do many things over many years.
Just so you folks know the IRS penalties + interest (at least 10% but it’s compounded so it’s more like 25+%) are much more than the amount owed by itself. You can negotiate with the IRS to waive at least some of the penalties + interest fees if you are smart & have good excuse (examples: moved, abroad, disaster, tragedy, natural disasters, fires lost documents, misplaced, illness, etc.,). Be always as “polite” as you can humanly be and make them “feel” like you are COOPERATING (key buzz word for the IRS - cooperating or not ) & this is why sometime is good to have 3rd party to negotiate on a behalf (lawyer or POA person) who is not emotionally engaged.
Maybe not the best idea to list out a verbal template here for potential criminals to follow... These days, someone like that only needs a small amt of personally identifiable info to pretend they "have your file up." Considering all the crimes like this being reported, I would never confirm or relay any details with a stranger over the phone. Get to an official IRS office in person - or call their official number and request that persons extension.
@@MB-hz7wm criminals were, criminals are & criminals will be. There is more criminals created over the past 2.5 years than ever before especially in financial crimes sector. Billions were looted from taxpayers. The point is this folks: #1 use common sense, #2 never ever give any information to anyone if you are suspecting fraud, #3 you know better than anyone if you are filing your taxes or not and if you possibly “owe”money to the IRS and that they maybe looking for you, #4 request number at which you can verify that this is legitimate call, IRS has 1-800 numbers, #5 you have tens of notices from the IRS before any account is turned to the IRS (criminal) collection division, never ignore any letters from the IRS, it’s not that bad I got refund once when overlooked some finances (loss on stocks - year in question) when IRS sent me audit notice, #6 there are “natural”disasters such as fires (entire homes & record lost), flood, hurricanes, tornadoes, deaths, etc., they will work with you, give time, extensions, etc., but you have to deal with it. I know it’s hard & not easy if this happens but there are laws accommodating all these situations. You can always have POA (Power of Attorney) to deal with it on your behalf and this not need to be an attorney, it can be anyone who is knowledgeable and/or capable (family member). One big tip (this is really making or breaking tip) never ever sign any waiver for the IRS. waiver is to waive your rights regarding time (collection time, lien time, etc.,), there are time frames for everything and if they are not able to collect for example within that time frame the account goes to “uncollectible” (forever) if the taxpayer is unable to pay because of limited income, insufficient income, lost income, lost everything. Read my book.
If you are not a criminal and you owe tax and they cannot locate any assets or income to levy, they will call you or visit you. personally.
@@saintbees2088 they don’t visit individual taxpayers only businesses unless you are multimillionaire and owe them millions. they will never visit you for $3K or so [for example] …maybe Biden will? besides if someone don’t have income & assets to collect from & is unable to pay it the account will eventually go to “uncollectible” if person won’t sign any waivers giving the IRS more time to collect. they have timelines & if they are unable to collect within these timelines, account becomes uncollectible. this is what they don’t want you to know. same or similarly with liens.
i am writing from my personal experience of having revenue officer call me and come to my office to collecy a $3,000 debt. I simply wrote the irs a check and he went away. He did provide a letter from them rhough.
Thank You MARK.. Surely GOD is using you!! 👍👍