People always are asking if I think their individual tax return is going to get audited by the IRS. There are always certain red flags that may make a return have a greater chance of an audit, but here is a “general” percentage of federal tax returns audited – grouped by Income Level (Adjusted Gross Income):
- No AGI – 2.67%
- Under $25,000 – 1.05%
- $25,000 – $50,000 – 0.70%
- $50,000 – $100,000 – 1.28%
- $100,000 – $200,000 – 0.85%
- $200,000 – $500,000 – 1.96%
- $500,000 – $1,000,000 – 3.57%
- $1,000,000 – $10,000,000 – 17.94%
- Over $10,000,000 – 27.37%
If your firm has a 401(k) Plan or a SIMPLE IRA, remember to contribute on a regular basis. This way, the ups and downs in the stock market will have less overall impact on your investment portfolio results.
I read an interesting article the other day titled “5 Key Tasks Every Small-Business Owner Should Outsource” written by Barbara Hernandez at Evolution Capital Partners. “Compelled by a ‘do it all yourself’ mentality, small-business owners are often hesitant to delegate tasks and try to maintain control over every aspect of the business – but this rarely, if ever, works out for the best. Not only does it stall a company’s growth over the long run, it also leaves little time to focus their energy and talent on the core job functions that matter most.” Of the five key tasks that can easily be outsourced, which was #1 on their list? Accounting and Finance.
I might argue with characterizing accounting and bookkeeping as “mundane” – helping our clients behind the scenes so that they can focus on strategy and the bottom line is something we get excited about at DMS!
Going back to my cage….bark at you soon.