Do You
Owe IRS???




FREE 2008 Tax Return Review Details
CPA Moms - Services Offered
Tax Preparation
Electronic Filing
Do Your Own Taxes - Fee from Refund
Enrolled Agents
Tax Moms
Cash from Western Union
CPA Moms
Representation before IRS
Non Profit Tax Services
CPA Loan Letter
Claiming Social Security Disability
Divorce & Taxes
Offer in Compromise
Installment Payment for Taxes
Credit Reports
Social Security
Deliquent Tax Returns
Installment Tax Payment Home Page
Latest IRS Payment Method
Articles on Paying IRS
Additional Resources
Want to Join the Moms?
Questions for CPA Moms?

Death & Taxes

We have Information to Help You with Either

Got Question for a CPA Mom?

IRS wants you to retire Financially Free!     We will answer your questions and give you options about how to become Financially Free when you retire

Tax answers/options when you sell your Home.      We will answer your questions about the tax free home sales and give you options on tax free exchanges

So, You got a letter from IRS?  We can help.    Letters from IRS are scary. We will answer your questions at no charge.

S-Corp, LLC, C-Corp, Partnership - Your Choice?    Selecting the correct Business Entity is confusing.  We will give you the tax options of each Business Entity.

How not to pay taxes when you sell income property.    We will explain how to do a tax free exchange & not pay taxes when you sell your income property.

To pay for Services - Please click on Paypal Logo below





How To Reduce The Chance Of An Audit By Over 50%
Wayne M. Davies

Perhaps you've been thinking about making a change
in your Choice of Entity. Maybe you've been asking,
"What type of Business Entity should my business be?"

By "Business Entity", I mean the legal structure
of your business, and there are basically
five from which to choose:

Sole Proprietorship
Limited Liability Company (LLC)
"C" Corporation
"S" Corporation

This is not a question that is easily or quickly
answered. There are many factors to consider,
and here's one that is often overlooked:

If you are a Sole Proprietorship, your odds of getting
audited are two, three or even four times greater
than the other entity types.

Take a look at the following chart of IRS audit
rates for Year 2002:

INDIVIDUALS -- with Schedule C
< 25,000 ................ 2.63%
25,000-99,999 ........... 1.13
> 100,000 ............... 1.36

< 250,000 ............... 0.22%
250,000 - 1M ............ 0.73

S CORPORATIONS .......... 0.42%

PARTNERSHIPS/LLCs ....... 0.27%

Now let's analyze the numbers by comparing
the Schedule C audit rates with those of the
other entity types. Do you see the difference?

Depending on your sales, the audit rates for
Sole Proprietors range from 1.13% to 2.63%,
compared to the rates of 0.22% for
small "C" Corporations, 0.27% for Partnerships
and LLC's, and 0.42% for "S" Corporations.

Of course, all these audit rates are still
relatively low, especially compared to previous
years. And even at 1 to 2%, I hope you like the
odds of not getting audited.

But if you are looking at the pros and cons
of incorporating your Sole Proprietorship,
you should be aware that making a switch
will improve the odds in your favor even more.

Should you form a corporation simply to lower
the chances of being audited? Of course not.
But if there if have other compelling reasons
to incorporate, these lower audit rates are
the icing on the cake.

NOTE: The above statistics are taken
from an Excel spreadsheet freely available
at the IRS website. This spreadsheet shows
audit rates for all types of returns for
years 1996 through 2002.

Wayne M. Davies is author of 3 tax-slashing eBooks for small
business owners and the self-employed. For a free copy of
Wayne's 25-page report, "How To Instantly Double Your
Deductions" visit

Privacy Policy .... About Us  ....  Disclaimer .....   Copywrited 2005  - 2006 & Developed by  Tax Net Inc