Alexandra Talty, contributor for Forbes who covers personal finance and travel, recently spoke with McManus & Associates Founding Principal John O. McManus for tax tips that she could pass along to her readers. McManus’ thoughts appeared back-to-back in Talty’s two-day series that highlights “some shocking employee deductions as well as hitting some basics for first-time tax filers.”
Talty’s first article, “Surprising Tax Reimbursements for Employees,” addresses the importance of crossing your T’s and dotting your I’s come tax season. As emphasized by McManus in the story:
“Document, document, document with details, details, details. The IRS is looking at it as a smell test,” says John O. McManus, founding principal of McManus & Associates. “The longer you take to respond back to them [if you are audited], the more they think you are contriving or making it up. You have to be very reactive when they are calling on things. This demonstrates that you are always buttoned up.”
McManus advises, “Every year, presume you will be audited, so keep everything.”
Today’s article, Talty’s second day of tax coverage, focused on those “lucky enough to be self-employed or property owners.” Her piece, “Freelancing Tax Write-Offs You Might Be Missing,” offers interesting tips to bear in mind for tax day, such as how to write off cruises and conferences.
An educational vacation is a great way to kill two birds with one stone – but how can you be sure you’re covered if the IRS comes knocking? From McManus:
“I do believe it is essential to keep a copy of the agenda,” advises John O. McManus, founding principal of McManus & Associates. “Then the IRS can connect that it makes sense for you to be on the cruise for that purpose or that you needed to attended the seminar.”
Tax write-offs that help you see the world? Just say, “bon voyage,” pack your bags and go!
To read more helpful hints for self-employed Americans, check out Talty’s story in full here. And for tax planning help that transcends April 15th, give McManus & Associates a call at 908-898-0100.