Business Owners at Risk From IRS
New IRS Data Shows Sole Proprietors Ten Times More Likely to be Audited than Other Business Entities.
Las Vegas Nevada (PRWEB) March 29, 2006 -- Internal Revenue Service (IRS) data shows a huge discrepancy in tax filings projections from sole proprietors, independent contractors, and self-employed workers, from the expected return, based on filings from five years ago. The expected loss in revenue this year alone is expected to be in excess of $68 billion dollars. IRS Commissioner Mark Everson said, to Bloomberg.com, “Most of the noncompliance occurs in businesses where there isn’t automatic reporting of information to the IRS, such as sole proprietors who report income and deductions on Schedule C.”
According to published reports, last year alone the IRS audited almost twice as many individuals and sole proprietors as in the five years previous, and furthermore, this year the IRS has again increased its budget by $3.7 billion and increased its project number of random audits. However, there is a silver lining to this story, last year IRS audits of the nation’s corporations fell. This is good news for business owners who operate a corporation or an LLC. Simply by incorporating your business you can lower your chances of IRS audit
In addition to lowering your risk of IRS audit by incorporating, it is important to note the significant advantages of incorporating in the state of Nevada. Unlike most states and state agencies who freely exchange detailed corporate ownership information, Nevada keeps minimal information about ownership on record and has steadfastly refused IRS requests for reciprocity. This benefit has made the Silver State very popular for business owners nationwide to own a Nevada entity. You can live anywhere and still own and operate a Nevada corporation.
In addition, Nevada has no corporate income taxes, no state income taxes, no taxes on the shares of stock valuation, and unlike Delaware, there is no franchise tax.
About NCH, Inc.
Nevada Corporate Headquarters, Inc. is the largest incorporator of Nevada based entities having formed more than 25,000 corporations and LLCs over the past 15 years. To receive a free copy of the 3rd Edition of NCH's Nevada strategy and secrets book called "The Nevada Edge" call 1-800-508-1729.
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