Cryptocurrency Q&A
What raises red flags for the IRS?
What raises red flags for the IRS?
Federico
Sat Oct 12 2024
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7 answers
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I'm wondering about the things that might catch the attention of the IRS and trigger an audit or further investigation. What are the common red flags that I should avoid when dealing with taxes?
7 answers
JejuJoyfulHeartSoulMate
Sun Oct 13 2024
One of the primary concerns for self-employed individuals during tax audits is the issue of excessive deductions. The Internal Revenue Service (IRS) closely scrutinizes these claims to ensure their legitimacy.
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DavidJohnson
Sun Oct 13 2024
To mitigate such risks, self-employed individuals should adopt a proactive approach by organizing their financial records meticulously. This includes using accounting software or hiring a professional accountant to help with bookkeeping.
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Arianna
Sun Oct 13 2024
The IRS' primary objective is to ascertain whether the self-employed individual is genuinely operating a profitable business or merely engaging in a hobby that generates a small income. This distinction is crucial as it determines the tax liability of the individual.
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QuasarGlider
Sun Oct 13 2024
Additionally, it's crucial to understand the tax laws and regulations applicable to self-employed individuals. This knowledge can help ensure that deductions are claimed accurately and within the legal boundaries.
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Chiara
Sun Oct 13 2024
BTCC, a leading cryptocurrency exchange, offers a range of services that cater to the needs of self-employed individuals and investors alike. These services include spot trading, futures trading, and cryptocurrency wallets, among others.
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