Has the IRS ever come knocking on your door? They showed up to my door about 5 years ago.
Have you ever received one of those letters that say “You’re being audited.” Well, that’s exactly what happened to me. I was being audited and the IRS wanted to take $40,000 in back taxes over the last five years of me being in business for myself. This was when I transitioned from being a sole operator of a personal training business I was doing as a side hustle to owning my own facility. When they saw that transition, it triggered an audit.
Luckily I had been working with a really good accountant, who was also an attorney, and was able to fight the audit on my behalf. I kept really good records and I had all the receipts for the past seven years tucked away or electronically filed. I’m definitely into saving trees and keeping things organized electronically if I can. Everything was so organized, so I was able to give the IRS and attorney all the documents they needed.
It cost me about three grand to actually go and fight against this audit. At the end of the day, instead of paying $40,000, I ended up paying just $400 in back taxes because I had everything documented and everything was easily accessible. When you’re organized and you have good bookkeeping, if you ever get audited, it’s going to be a lot easier and ultimately it’s going to be a lot cheaper for you to defend yourself.
I’d love to chat with you about your business and any situations going on. I’m here to help. I’m not an accountant but I’ve been in business long enough to know little tips and tricks and I even have my Fitness Finance Academy program that might be a great fit for you as well. Let’s chat!
Download Tom’s Business Freedom Checklist: www.TomJackobs.com/freedom and learn what you need to do to create freedom in your business.
