Watch out for the IRS

I just read a wise, and hopefully obvious quote from Fortune Magazine.

"There are two proven paths to building wealth: You can increase the amount of money you make, or you can increase the amount of money you keep."

Many small business owners ignore the many deductions put in place to help them become big businesses because they fear the spectre of the IRS.

And not without reason.

"Consider 2006, when the IRS audited nearly 18,000 small companies (which it defined as those with assets less than $10 million), up from 7,000 in 2004. At the same time, many small-business owners overlook key deductions and wind up needlessly giving away hard-earned cash."

So what can you do?

Learn how the tax code works for you and then put in the effort.

Now, I’m talking to myself about this as much as anyone else. I absolutely hate tax stuff. I would rather have my eyes gouged out by a badger than do bookkeeping.

At least I admit it, right?

So what can you do to increase your tax deductions and save on your income tax?

Well…if you’re getting started now, it might be tough to do anything about the previous year. Sorry.

But now is the time to start the year off right. If you do it correctly, keeping tax records shouldn’t be that hard.

I recommend the CD program from Sandy Botkin. It’s 13 audio CDs. It’s actually fun to listen to and you’ll learn a bunch of stuff along with how to apply it. The amount of money you can save on your taxes can be in the thousands so it really doesn’t make any sense not to learn how to take control of your tax situation.

So…do it now.

You can check out the program here.

[tags]taxes,income,IRS,deductions,audit,savings[/tags]