IF….she could stage a design intervention on our Twitter profile @bigbizradio.  (dang, cracking the web marketing whip!)

So, we gave this web marketing “she geek” our Twitter account access and she didn’t waste any time “pimping our profile!”  Web Marketing Therapy’s “Wild Web MAN”, Wil Thomas performed the Twitter facelift.  CHECK IT:

Our @BigBizRadio Twitter look BEFORE the Intervention

Our @BigBizRadio Twitter look AFTER the Intervention - grr baby, grrr!

Follow Lorrie Thomas Ross on Twitter @webtherapist and on our show every Friday.

When deciding who will undergo an IRS audit, they use a computer generated DIF score; which stands for the “discriminate function” system. The DIF score is a statistical profile that compares the tax numbers (income, expenses, and deductions) on income tax returns with numbers generated using national statistics for tax payers in a similar income tax bracket.

The formula the IRS uses to compute a DIF score is a secret but the following “red flags” may make a person’s tax return more likely to be audited:

1. Failure to report income. The IRS receives copies of all W-2s, 1099s, and other income reports that people receive. Failure to disclose any, or all, income will make your return stand out.

2. Claiming false business expenses. Excessive home office deductions, claiming 100% of a vehicle for business, and trips that have only the most tangential business reason can all be flags for an IRS audit especially if you are claiming big expenses in proportion to earnings.

3. Sloppy or incomplete tax returns or no return filed. If the IRS has to spend time sorting out a return or a return is filed late with no tax paid, the IRS will most likely take a very close look.

4. Excessive charitable donations without documentation. Make sure you have receipts or acknowledgement letters that state the donation amount from any charitable donations.

5. Unreported foreign accounts. Non-reporting of foreign accounts or incomplete reporting of assets overseas will also send a red flag to the IRS.

Even if you have not done any of the above, you may still be subjected to an IRS audit. If you do get audited, I recommend hiring a qualified tax professional to help you through the auditing process.

About Michael Rozbruch, CEO and Founder of Tax Resolution Services, Co.

Michael Rozbruch is one the nation’s leading experts on solving individual and business IRS tax problems. As a Certified Tax Resolution Specialist (CTRS), CPA (licensed in the state of Maryland), and member of the American Society of IRS Problem Solvers, he and his company have represented thousands of taxpayers who owe the IRS, but simply cannot afford to pay. Michael has been a guest speaker on over 200 radio stations across the country and has been interviewed on numerous TV news programs as a nationally recognized expert guest speaker.

One of the biggest challenges business owners face is staying current with payroll taxes. Once you fall behind, the problems tend to have a snowball effect and multiply rapidly. It’s common for companies to fall behind on payroll taxes, especially when big accounts can’t pay their bills on time, or at all.

The best advice that I can give is to get current on your payroll taxes, even if you can’t pay back taxes. This will stop you from getting in deeper trouble with the IRS and it should help to save your business. How do you do this? Follow these steps:

1.  Prepare all old payroll tax returns and file them with the IRS even if you can’t pay a penny of the taxes owed.
2. Pay your current payroll taxes.
3. Stay current with all future payroll taxes deposits and filings. If you do these things you substantially reduce likelihood of the IRS closing your practice.

If you cannot follow these steps, then your business and your personal assets are in serious jeopardy. Dealing with the IRS on payroll tax issues is a very delicate situation. I strongly suggest seeking immediate professional advice from a Certified Tax Resolution Specialist and avoid any direct personal discussion with the IRS.

Usually, what one tells the IRS revenue officer in the first few minutes of the conversation dictates one’s fate and future. One wrong answer – even though it is the truth – could spell the end of a business. The IRS will get you to incriminate yourself.

Some tips to keep in mind:

• Avoid talking with the IRS or meeting with them by yourself.
• Do not let them speak to anyone on your staff.
• Know your rights! You have the right to be represented by an attorney, CPA or Enrolled Agent (who are also Certified Tax Resolution Specialists) when you are dealing with the IRS.
• Remember that there are options, programs and deals that may help you. Some examples:

1. Requesting abatement of all penalties (and in some cases, interest) due to reasonable cause.
2. Negotiate a properly structured payment plan that enables the company to operate while paying off the delinquent tax bill,
3. Prepare and submit an Offer in Compromise, due to doubt as to collectability.

Be sure to consult with an expert before you say anything to the IRS that you may later regret. Remember, no matter how nice the IRS revenue officer may seem, they are paid to look out for the government’s interest, not yours!

About Michael Rozbruch, CEO and Founder of Tax Resolution Services, Co.

Michael Rozbruch is one the nation’s leading experts on solving individual and business IRS tax problems. As a Certified Tax Resolution Specialist (CTRS), CPA (licensed in the state of Maryland), and member of the American Society of IRS Problem Solvers, he and his company have represented thousands of taxpayers who owe the IRS, but simply cannot afford to pay. Michael has been a guest speaker on over 200 radio stations across the country and has been interviewed on numerous TV news programs as a nationally recognized expert guest speaker.

(1) Get Organized. Allow enough time to get your “stuff” in order. For example, properly categorizing your expenditures now will save you a lot of time later. Come tax time, you will be glad you grouped your expenditures by category (match it with verbiage on Schedule C if self-employed) and not by month or name of vendor payee.

(2) Exercise Flexibility. Timing your cash flow can save you money. In other words, always accelerate deductions in the year you are doing taxes for and always defer income, if you can, into the next year, thereby lowering your current year’s tax bite. If you fall into the Alternative Minimum Tax, you may want a professional to advise you.

(3) Don’t be Penny Wise and Pound Foolish. Hiring an expert CPA or EA to prepare your return is a small annual investment that can pay off big! Don’t do your taxes yourself unless you are a straight W-2 wage earner that takes the Standard Deductions (in other words, someone who doesn’t itemize or have any unreimbursed employee business expenses).

(4) Be Careful and Thorough. Avoid common problems like illegible hand writing, mathematical errors, transposition of numbers, and missing signature. These little oversights can end up costing you time and money if you are slapped with penalties.

(5) Know When To Ask for Tax Help. Tax preparation tools like TurboTax and TaxCut are great, but people with anything more than a straight W-2 (including anyone with even the smallest business “Schedule C”) should be aware of the limitations of these software programs.

Michael Rozbruch, aka “The Taxman”, is the Founder and Chief Executive Officer of Tax Resolution Services, Co.®, the nation’s leading experts in tax negotiation and mediation®. TRS is dedicated to providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS. TRS is a member of the Tax Problem Resolution Services Coalition (TPRSC), based out of Washington, D.C. For more information or to receive a FREE tax relief consultation, visit www.TaxResolution.com or call 888-851-5894