Everyone is taxed in some way. There’s income tax, property tax, sales tax ‘“ the taxes are endless. Tax deductions, however, help balance the taxes that a person would normally pay. A tax deduction allows taxpayers to claim certain expenses as a tax write-off. This reduces the amount of taxes a person is paying and can even result in a larger tax refund. There are many different kinds of deductions that a person can claim.
Many tax deductions can be claimed as business expenses. Costs that are necessary for a business can be claimed, giving business owners a much-deserved break. The IRS has seen some odd tax deductions claimed during tax season, such as the cost of a sex change, bags of cat food, and free beer. The IRS does reserve the right to assess the deduction, especially in the cases of these odd deductions. A tax court will then decide if the deduction is a legitimate claim or not.
Although business expenses are commonly claimed on taxes, there are other tax deductions that are overlooked during tax season. Taxpayers might not realize they qualify for some of these deductions or they might not realize that the deduction even exists. Deductions such as the child care credit or even student loan interest paid can get the taxpayer some of his or her money back. A tax lawyer is aware of the different deductions and requirements and is a great source of advice come tax season.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.