Editor’s Note: TCJA tax reform increased the standard deductions which enhances this strategy. Click here for how.
Suppose that the IRS sends you a note saying that it wants to audit your business’s hiring of your children.
How would your records hold up?
Let’s visit Jeffrey Allen Dumond. At the time of his audit, he was operating State of the Art Vending, a business he acquired that included vending machines and a client list.
Mr. Dumond claimed deductions for $8,400 in wages that he purportedly paid his children, ages 5 and ... Log in to view full article.