Not reporting all your income

The most common and easiest audit trigger I have seen in my years of working in the accounting industry is not reporting all your income. This is a lot easier to overlook than you might think. Even if you don’t report your income to the IRS, the business that pays you will. For example, if you work as a contractor, the company paying you will report your income on a 1099, typically a 1099-NEC. It is very common for the self-employed to receive several, perhaps dozens, of 1099-NEC forms every tax year. The important thing to know is that every 1099 goes out twice: one for you and one for the IRS. Companies are required to send out two copies to keep contractors accountable. If you receive a 1099, W-2, or other income document and fail to report it, the IRS will note the discrepancy and follow up. From there, it’s only a matter of time before you get a nasty letter in the mail letting you know about an income discrepancy, or worse, an audit notification. Help ensure your numbers are accurate and all your income is properly reported.

Here at Beachwood we always make sure that all the income that is reported on your business is properly reflected in your bookkeeping and financial reports. For more support around this, book your free consultation today!