NASE Blogs

Helpful News from the IRS

Mar 30, 2009

Posted by Molly Nelson - The Internal Revenue Service (IRS) has forums every other month for its small business stakeholders, like the NASE.  I attended the second forum of 2009 earlier this week, and learned a couple of things that I hope will be helpful!

The recent stimulus legislation, the American Reinvestment and Recovery Act, included a much-discussed net operating loss carryback provision.  There is still time to take advantage of this provision even if you’ve already filed your 2008 return and waived the carryback, if you filed your 2008 return and didn’t waive the carryback, or if you haven’t filed your 2008 return yet.  However, there is not a lot of time left to take advantage of the carryback provisions - many of these forms are due by April 17, 2009!  Check out IRS.gov for more detailed information and filing instructions.

If you’ve been lucky enough to get first-hand tax advice from Keith Hall at one of our TaxTalk Seminars, you’ll remember that he makes a point to say not to run your business like you’re going to get audited.  I almost laughed at this IRS forum when one of the topics presented was about the audit process.  We were reminded that returns are randomly selected for audits, and if you file electronically you are no more likely to be selected for an audit than if you do a paper return.  Also, audits aren’t necessarily bad!  It’s more likely than not that if you are audited, your return will have no change or you might even get a refund.  Like Keith says, don’t run your business (or live you life) expecting to get audited, but remember that everyone needs to keep adequate books and records, and the more organized you are the easier it is if you are audited!