Home Business :: How can Network Marketing / MLM Business Owners Reduce the Risk of an IRS Audit?

Network Marketing / Multi Level Marketing professionals often ask me “What are my chances of an IRS audit?” Many others ask “If I overpay my income tax, will that make me audit-proof?”

First off, the odds of having the IRS select your tax return View publisher site for an audit are very low. Roughly 1% of all taxpayers get audited in any one year. However, as a small business owner, you are much more likely to be audited than W-2 wage earners. In fact, sole proprietors (the legal entity structure for 80% of MLM businesses) are three times more likely to be audited than W-2 employees.

As you know, one of the big keys to success in network marketing is to “Never Quit”. The good news is that the vast majority of those who stay with their company for 10 years or longer hit the top position in the company’s compensation plan! The downside risk is that the longer you stay in business–any business–the greater auto insurance quotes the chances are that you’ll be audited at Move here least once. And if any irregularities are found, audit lightning can strike more than once! So… let’s look at how tax returns are selected for an audit, and how can you reduce the risk of it happening to you.

The IRS selects taxpayers for an audit in several ways:

1. Random selection. Sounds Official website like something Darwin made up, but nevertheless, it applies here. The IRS simply selects some businesses at random.

2. Targeted selection. Certain types of businesses are more likely to be audited than others. The IRS will focus like click here a laser on certain businesses if experience has shown a high degree of noncompliance with the tax laws. In times past, lawyers, car dealers, and funeral homes, for example, have had a target on their back.

3. DIF scores. The IRS uses a method of computer scoring, called Discriminate Index Function ratios, to select taxpayers for an audit. This method identifies extraordinary tax click here deductions such as excess travel, entertainment, or vehicle expenses.

4. Document Compliance. If you’re Move here typically slow to file (miss filing deadlines), or quick to file amended returns (looking for bigger refunds), you can put yourself at a higher risk of a tax audit. Haphazard non-compliance, or lack of attention to form details, can read more be like waiving a red flag and screaming “I’m over here! Audit me!”

While there’s not a lot you can do to avoid the glare of DIF scores or random selection, one thing you can and should car insurance quotes do is keep good records. Always carry an appointment book or day-timer to record your auto mileage, travel, and meals / entertainment records. You should also keep special records for equipment that you use for both business and personal purposes. Computers, cell phones, and vehicles used for both business and personal use are great examples; these are called “listed property” and the rules that dictate how much you can deduct for business usage requires detailed record-keeping.

If you’re serious about your Network Marketing business, you should maintain a separate checking account for the business. You should also hire a professional to prepare your tax return. You’ll usually save far more in taxes than you’ll spend in tax preparer fees. Tax professionals know the rules, prepare hundreds of returns each year, can lower your tax bill, and help you avoid mistakes that might otherwise lead to an IRS audit.

Will overpaying your income taxes make you audit-proof? Repeat after me: They don’t care. The IRS doesn’t care if you pay the right amount of tax, or even overpay your taxes. They DO care if you pay less than you owe, and also if you can’t substantiate deductions you’ve claimed Visit this page on your return.

The IRS doesn’t care if you overpay in one area–you will still get hit with interest and penalties if you underpay in another area.

In conclusion, the best way to “Audit Proof” yourself is to properly document your expenses and make sure you are getting good advice from your tax accountant.

Insurance

Some experts say “yes.” Zane Benefits, for example, has been promoting a plan it says allows companies to reimburse employees who buy individual insurance with pre-tax dollars. And it’s been getting away with it. That’s partly because most states practice a “don’t ask; don’t tell policy.” If an insurance agent doesn’t ask where the premium dollars come from and the buyer doesn’t disclose the source, the agent is off the hook. (In Texas, by contrast, agents have an affirmatively obligation to determine where the money comes from.)

‘The cheap auto insurance population who were already on Medi-Cal [California car insurance quotes Medicaid] before Jan. 1 is a lot more expensive for the state to cover, she said. The federal government pays only half of their health care costs, compared to 100 percent of the costs for those who qualify under the [Affordable Care Act’s] broader eligibility guidelines.’ ”

Is there a better way of organizing a health care safety net? Most of the countries south of our border – and indeed most of the countries in the world – have a free health care system available to everyone. It may not be the best care. There may be rationing by waiting. But there is no enrollment, no paperwork and no lottery. You can think of this as Medicaid for everyone, with no administrative hassle.

“The California auto insurance quotes Department of Health Care Services sent everyone who needed to renew the necessary application in the mail, but advocates like [Jen Flory, a senior attorney at the Western Center on Law & Poverty] say people have struggled to complete it. The cheap car insurance form is complicated, asks for information the recipients hadn’t provided in the past and is available only in English and Spanish.

Compounding the problem is the fact that the state of California has a financial incentive to prefer enrollees who count as part of “Medicaid expansion” over renewals of people who were already in the program.

One thing that can be said in favor of a lottery is that administrative costs are almost Front page zero. In California, by contrast, one reason people are not renewing their Medicaid coverage is that they are being drowned in a sea of paper cheap auto insurance work. As Jenny Gold explains at Kaiser Health News:

There’s just one problem. The insurance has to be group insurance. That’s the kind of insurance you eventually lose when you leave the group (switch jobs). Most states explicitly outlaw employer’s buying individually owned insurance (which employees can take with them) with pretax dollars. Even if a state hasn’t outlawed it, most lawyers think the practice is illegal under federal law.

” ‘Flory said she doesn’t think the terminations are an accident. “When people fail to jump through these hoops to stay on the program, the state saves money,’ she said.

“Being chosen in the monthly lottery can be life-changing for those who are poor and without health insurance in Arlington, one of the nation’s wealthiest counties. Each month, about 100 people line up for the chance, a multilingual mix of hope, desperation and determination.

Zane even believes that lower-paid employees who qualify can claim federal subsidies when they buy their insurance on the exchanges. This in effect amounts to double dipping – getting one subsidy at work and another in the exchange.

In a previous post, I described such a system as a form of universal coverage. It’s at least as close to that as we are ever going to get. See a more detailed description here.

“What the legislators over looked was that about half of the newly insured would enroll in Medicaid (an insurer whose payments to hospitals is scheduled to fall far below previous expectations), that Medicaid patients would continue to patronize safety net hospitals, that patients with newly subsidized private insurance would have large deductibles and copayments that they can’t possibly pay out of pocket, and that those with better insurance will go to some other hospital.”

Over the past decade or so, however, a number of employers and their employee benefit advisors seem to believe they have found a loop hole: Health Reimbursement Arrangements (HRAs). These accounts are funded by employers and Treasury regulations explicitly allow employees to use the money to pay premiums. But can the insurance be individually owned?

Page 1 / 2

Continue

Comment Now Follow car insurance quotes Comments

Print

Report Corrections

Reprints & Permissions

Think about that. We are now four years into a national health care reform whose original goal was to provide “universal coverage” to every man woman and child in the country and instead of that people are participating in a lottery to determine who will get care. Obviously something is not working very well.

‘There’s a lot of confusion, and it’s a language access issue,’ said Connie Lo, health programs coordinator at Asian Americans Advancing Justice Los Angeles. ‘Most of our clients are limited English proficiency. They don’t even know what these packets are for and why they’re receiving so many documents together that they can’t even read.’ ”

On the other side of the country something equally bizarre is happening. In Arlington, Virginia people are participating in a lottery to find out who will get Visit this site free health care. Those who lose out generally don’t get any care until next month’s lottery. As Patricia Sullivan explained in the Washington Post:

How might something like that work in the United States? A fair and efficient way of structuring it is to offer everyone a tax credit of, say, $2500 for an adult and $8,000 for a family of four – the amounts the CBO estimates that new enrollees cost Medicaid. If people enroll in Medicaid, the money goes to Medicaid. If they choose private insurance, the tax credit applies against premiums. If they do nothing, the money goes to safety net institutions who deliver free care (but may ask for payment if patients have assets).

Share

John C. GoodmanJohn C. Goodman Contributor

I offer market-based healthcare solutions.

Opinions expressed by Forbes Contributors are their own.

HEALTHCARE, FISCAL, AND TAX 11/25/2014 @ 10:13AM 591 views

What’s Wrong Site web With Our Health Care Safety Net?

Comment Now Follow Comments

California expects to enroll 2.6 million additional low-income families in its Medicaid program this year. But here’s a surprise: an even greater number of people who were previously on Medicaid may not renew. That’s right. The total number of people with Medicaid coverage may actually go down. Both changes are due to Obamacare.

The clinic — one of more than 50 free clinics in Virginia — prides itself on providing “whole-person” care for more than 1,700 patients, meaning that regardless of what brings people in, they can get treatment for any physical or mental health need. Spanish-speaking interpreters are always available, and there are also volunteer translators in many other languages.”

There are other problems that are nationwide. In a previous post, I argued that is that in the very act of getting health insurance to more people, Obamacare is reducing the Image source funds safety hospitals have to deliver care to the most vulnerable populations:

Public opinion polls have consistently shown that one of the things people like least about our health insurance system is the lack of portability. When you leave one employer to work for another you can take your 401(k) plan with you. But you can’t take your health insurance. Why is that?

However, in most of these countries just about everyone who can afford to do so, avoids the public system and buys private care or private health insurance. There typically is a tax subsidy for private insurance – especially if provided by an employer.

The reason is the tax system. Federal tax law has a generous provision for people who obtain health insurance at work. Unlike wages, the premiums the employer pays for employee health insurance are not counted in the employee’s taxable income. When you add together federal and state income taxes and payroll taxes, the ability to buy insurance with pre-tax dollars is worth almost half the cost of the insurance to many middle-income employees.

Insurance

Last week, Wells Fargo was the first private student loan lender to announce it will modify private student loans for borrowers that are facing financial hardship. While many private lenders have worked with borrowers, Wells Fargo is one of the first to announce that payday loans it will offer long term modifications to borrower payment plans. You can read the full press release here.

Private Loans Have Been A Struggle For Many Borrowers

The truth is, many borrowers have gotten payday loans online themselves into financial trouble with private student loans. Federal student loans place limits on the amount students can borrow – theoretically for their own protection. However, when these loans are exhausted, some students turn to private loans to fill the gap.

Private loans typically have higher interest rates than Federal loans, and have far fewer protections for borrowers. There are also few choices in repayment plans beyond the standard fixed repayment.

Private Lenders Must Compete With Federal Programs

For borrowers, there has been a lot of confusion around private versus Federal loans. While Federal read student loans offer various repayment programs, student loan forgiveness, and student loan consolidation options, private student loans do not.

This has made it difficult for private lenders to compete with the Federal government for traditional students. Instead, private lenders have focused on areas where the Federal programs don’t apply: medical school, law school, graduate loans, and more. But the risks are higher, and lenders face shareholders where the government does not.

The trouble is, borrowers in these loans take on more debt – especially in the graduate segment, than they can likely afford. The result is the lenders are facing higher default risks in their portfolio. In turn, it make sense that they will begin offering more structured programs to get borrowers paying on their loans as much as possible.

Borrowers Still Have A Tough Journey

However, borrowers with private loans still have a tough journey to face if they want to get a private student loan modification from their lender. it’s important that borrowers remember that these are still for-profit companies, and so any loan modification is not going to be structured payday loans online just to help the student, but also help the bank as well.

Here’s what Wells Fargo is offering borrowers facing financial hardship:

When you are having difficulty finding employment, have experienced a job loss, or have an unplanned medical expense, we understand that keeping up with payments can be difficult.

We may have options that will provide temporary and permanent relief, such as: Short-term payment relief for up to two payday loans months as long as you’ve consistently made your Learn more loan payments on time, payment relief for up to six months due Visit the website to financial hardship, payment options if you are already past due payday loans on your account, and Loan Modification Program which may temporarily or permanently lower payment amounts.

When borrowers contact Wells Fargo with a financial hardship concern, they should be prepared to gather supporting financial documents that may include pay stubs, or other types of income documentation, along with information surrounding the customer’s complete financial picture to evaluate the severity of the financial hardship. Even then, it’s no guarantee that Wells Fargo will agree to any student loan modification.

At click here the end of the day, it’s important for borrowers to remember that there is no escaping student loans. These programs are nice, but they payday loans are more window dressing than anything else. They won’t help many borrowers, and won’t fix the bigger financial implications of student loan debt.

Insurance

The plans follow those the Bank’s Prudential Regulation Authority (PRA) has already drawn up for senior bankers, although they are less demanding Visit website in some respects.

“Policyholders are best served by insurance companies with senior managers who can be held to account Visit here and who are individually responsible for the decisions they make,” PRA chief executive and BoE Deputy Governor Andrew Bailey said.

Regulators have come under fire from lawmakers for Visit the site bringing so few bankers to book after lenders had to be bailed out by taxpayers in the 2007-09 read more financial crisis.

Under the so-called “reversal of burden of proof” proposals Twitter for banks, top managers would have to prove to regulators they were unaware of or had challenged dubious behaviour at the time.

This has alarmed bankers, with two directors of HSBC set to leave the bank because they are unhappy with the new rules, Reuters reported last month.

The plans for insurers are slightly different, recognising the differences between the industries, the PRA said.

Regulators would have to show misconduct by an insurance official was deliberate or that behaviour fell below reasonable standards. The sanctions that could be imposed against insurance officials are also in line with those View website already available, such as fines, bans and public warnings.

The Association of British Insurers (ABI), an industry body, said it was reassured the plans recognised the differences between banks and More insurers.

“We will be working with our members… to ensure that the regime is fit for purpose and ensures a continuing flow of high level talent payday Here. loans into the insurance industry,” it said.

The new regime for insurers such as Prudential and Aviva will apply to chief executives, chief finance officers, chief risk officers, heads of internal audit and More.. chief actuaries.

At the Lloyd’s of London insurance market, it will apply to chief underwriting officers and underwriting risk oversight functions.

Insurance

The plans follow those the Click Bank’s Prudential Regulation Authority (PRA) has already drawn up for senior bankers, although they are less demanding in some respects.

“Policyholders are best served by insurance companies with senior managers who can be held to account and who are individually responsible for the decisions they make,” PRA chief executive and BoE Deputy Governor Andrew Bailey said.

Regulators have come under fire from lawmakers for bringing so few bankers to book after lenders had to be bailed out by taxpayers in the 2007-09 financial crisis.

Under the so-called “reversal of burden of proof” proposals for banks, top managers would have to prove to regulators they were unaware of or had challenged dubious behaviour Clicking More here at the time.

This has alarmed bankers, with two directors of HSBC set to leave the bank Check us out! because they are unhappy with the new rules, Reuters reported last month.

The plans for RSS insurers are Web link here slightly different, recognising the differences between the industries, the cheap car insurance PRA said.

Regulators would have to show misconduct by an insurance official was deliberate or that behaviour fell below reasonable standards. The sanctions that could be imposed against insurance officials are also in line with those already available, such as fines, bans and public warnings.

The Association of British Insurers (ABI), an industry body, said it was reassured the plans recognised the differences between banks and insurers.

“We will be working with our members… to ensure that the regime is fit for purpose and ensures a continuing flow of high level talent into the insurance industry,” it said.

The new regime for insurers cheap car Read insurance such as Prudential and Aviva will apply to chief executives, chief finance officers, chief Visit this site risk officers, heads of internal audit and chief actuaries.

At the Lloyd’s of London insurance market, it will apply to chief underwriting officers and underwriting risk oversight functions.

An Automated WordPress Plugin To Build Local Business Directories

Benefit?

-Free and insurance Quick way to advertise business .

-Eliminated the old time-consuming way of finding business like Yellow Pages.

There is one such plugin (WPLocalPlus) available which can help in getting all the business listings on the website just by pasting a small shortcode in the wordpress blog which not only generates a directory listing, but also helps to create all dynamic content instantly.

Local directory is a all-inclusive business directory for cities complete with ratings, reviews and maps. It is through Local Directories one can get click here all the information needed at one place instantly as well as compare the businesses.

One can find local businesses in a specific city for a specific category (e.g. Restaurants). To find a restaurant, spa, saloon near you in minutes with all the required details about that place like Reviews, Rating and much more a local business loans directory can be used.

If the local business insurance directory gives accurate and relevant information along with full Google map integration with directions, It would be a great help to customers to connect with the business being listed.

With changing times people want information to be readily available with the click of a mouse. The usage of Internet has made communication and business processes easier and far more efficient. Google, Bing, Yahoo are some of insurance the most used search engines for business, products and general purposes.

Most of the blog search engines return dynamic content for business searches. There is no categorization of the search results. A better way to access local businesses is to use Local Business Directories. It does most of the work to simplify the search by classifying search results in categories based on the topic. The customers can then choose the appropriate business listing by navigating to the appropriate Local Business Directory.

How to create a Local Business Directory on your website?

There are tools available to blog generate Local Business Directories in WordPress using Plugins.

So,What is WPLocalPlus Plugin?

It’s an awesome automated Plugin to generate automatically updated Local Business Directory Websites with Real User Reviews, Maps and Offline Coupons with the functionality read more of putting ads on your website.

WPlocalPlus fetches read the rich and most relevant local business listings/Content which dynamically enhance the functionality of your WordPress Blog which in-turns gives you an ability to quickly create new local business directory websites .

What are local directories?

Business Owners submit their business information to Local Directories like Google, Yahoo Local, Microsoft Live Local etc, so that insurance people can search and find the relevant business information.

To promote the business, business owners just need to fill a form contain all the fields to fill their business details which describe their business throughly which in turns get displayed in search results.

So how does local business directories work?

Australian Business Insurance Brokers

Anyone who click here owns a business knows what it is like to Linkedin take risks. Should we order additional stock? What if it does not sell? What if we run out of stock? What click here if the suppliers increase their prices? A business owner is also risk manager. He should be aware of the issues of personnel, stock, supplies, customers, and day-to-day business since all of these involve a degree of risk and are potential threats to the business. However, no business owner should risk his livelihood unnecessarily. Business insurance brokers can help a business owner manage the risks that he cannot anticipate, such as fire, accidents, or theft.

When choosing a business insurance broker, a business owner should insure that the policy they present covers all of his assets against a wide range of Visit this site events, including click here fire and accidental damage, theft and employee dishonesty, litigation, tax audits, and machinery breakdown. However, not all of these events are included in every policy, so a business owner should discuss the costs of each area of cover with several business insurance brokers. Business owners should also choose trusted insurance brokers. They are the ones who have already built a reputation for giving expert financial advice and their good judgement. It is important to do a bit of a background research to check the credibility of Visit this page an Visit insurance broker to make click here sure that he is qualified to render such services.

An insurance broker who works for a specific company will naturally recommend only the policies that his company offers. An independent insurance broker, however, works for the business owner. He will evaluate the needs of each business owner and recommend the best policy to meet those needs. He is not tied to a one-size-fits-all policy that may or may not fit every business. In short, his recommendations and suggestions are unbiased and is entirely based on the current condition of the Click here! business.

A competent business insurance broker requires a wide range of knowledge and experience. He must be part financial analyst, part business planner. He must also possess a thorough knowledge of Australian regulations regarding the minimum amount of coverage required by law in order to give a sound advice that is well rounded and well suited to the requirements of his clients

Business owners confused by the sheer number of insurance options should check with the National Insurance Brokers’ Association. Based in North Sydney, this group ensures that its business insurance brokers achieve a high click here standard of proficiency in all aspects of business insurance.

About the Author:

Get your business insurance quote today, visit http://businessinsurancequote.com.au/