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More Tax Tips From Mike Kavanagh
TAX TIP #2

How aggressive should you be when it comes to your tax forms? Tax expert Eva Rosenberg of the web site www.taxmama.com says it's one thing to be aggressive, but don't ask your tax preparer to push the envelope.

"Too many people are coming to us and saying 'I want to pay a thousand dollars in taxes and do whatever you have to to get there. You are asking your tax professional to do illegal things and make up numbers for you. This will not only put you in jail at some point but it might help them lose their license and put them in jail. That is not a good place to be, even though they do give you free room and board!"

Rosenberg also warns if you run a small business, 2005 is the year when the IRS is looking especially hard at your numbers.

"When they are looking at your tax return which has a Schedule C, if you also have income coming in from your S Corporation our partnership or other things, that same little auditor in their office is going to be empowered to examine the tax returns of the other entities relating to your whole business picture. "

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