Finance

Have finance questions? Ask a financial expert online.

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Accounting question... I run a service business and I don't…

Accounting question... I run a...
Accounting question... I run a service business and I don't have a very organized paper trail of my income and expenses for the past seven years. If I were to be audited, I would likely be fined. I was wondering if it would be more safe to open a new LLC and close the old one so that I can start fresh and not be responsible for having the required paper trail or last seven years of record keeping. Thank you.
Show More
Show Less
Ask Your Own Finance Question
Answered in 7 minutes by:
12/16/2017
Carter McBride
Carter McBride, Financial Advisor
Category: Finance
Satisfied Customers: 1,273
Experience: Adjunct Professor
Verified

Hey! I'm Carter, I'm a CPA and would be glad to help you out with this.

Your best bet is to just start keeping better records now, whether that is with Excel or Quickbooks, or some other accounting software. There is no need to close the prior business.

Typically, the IRS only has three years from the date you file a tax return to audit your returns. So, if you start doing it properly now, after three years, then all of your tax returns with the poor record keeping would then be outside the IRS ability to audit the return. Closing the company does not change the time the IRS has to audit the company.

Let me know if you need anything else. If not, please leave a rating. Thanks!

Carter McBride
Carter McBride, Financial Advisor
Category: Finance
Satisfied Customers: 1,273
Experience: Adjunct Professor
Verified
Carter McBride and 87 other Finance Specialists are ready to help you
Ask your own question now
Customer reply replied 7 months ago
Are you saying the IRS will still audit a closed company?
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a financial professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Carter McBride Your Own Question
Carter McBride
Carter McBride
Carter McBride, Financial Advisor
Category: Finance
Satisfied Customers: 1,273
1,273 Satisfied Customers
Experience: Adjunct Professor

Carter McBride is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,609 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,222 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,933 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
I just asked a question and lost the link they sent me to,
I just asked a question and lost the link they sent me to, to ask a cpa. can you get me back to that page? … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I have several business entity's that I would like to setup.
I have several business entity's that I would like to setup. I would like to start with a holding company that will hold ownership over my consulting and tax firm. I haven't dealth with the implicatio… read more
Matthew Breecher
Matthew Breecher
President
MBA (Graduate Legal Studies)
286 satisfied customers
Second opinion] I was not aware I was 1099. I thought i was
Second opinion] I was not aware I was 1099. I thought i was w-2. My company sent me over sea's for the past 6 months and I did not record my specific transactions. However, this country does not take … read more
Rakhi Vasavada
Rakhi Vasavada
Financial and Legal Consultant
Bachelor's Degree
2,609 satisfied customers
If someone hasn't filed there tax returns for like seven
If someone hasn't filed there tax returns for like seven years, what would happen if they filed this year, would they be notified of not filing for seven years? They haven't received anything from IRS… read more
Shan-Nel Simmons
Shan-Nel Simmons
Tax Professional/Owner
Master\u0027s Degree
43 satisfied customers
I have passed unpaid ,unfiled history with IRS. I'm looking
Hi, I have passed unpaid ,unfiled history with IRS. I'm looking to clear things up and star fresh. I would need to open up my bank account that was closed by IRS . In order to start ableing myself to … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Sure that would be great! I am looking to start an LLC. The
I am looking to start an LLC. The LLC will be a single-memeber LLC as I will be the owner and only member of the company. My question is what are ALL of the taxes I would pay for an LLC? Disctrict tax ( sales and use tax ) and Income tax? Any other taxes ? … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
I really appreciate your straight forward and detailed
Stephen, I really appreciate your straight forward and detailed answers. I am looking for business insurance for my business where I buy phones & tablets in bulk and resell them to individuals and bus… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I have two LLC's. We have a payment processing company set
I have two LLC's. We have a payment processing company set up with company B so I have to xfer from company A to company B and make the payments. Are there any issues with showing the expenses in comp… read more
Angie
Angie
Bookkeeper
55 satisfied customers
I have a few accounting questions, my first question is: i
Hello i have a few accounting questions, my first question is: i will open a company and will like to register X amount of $ as an account payable to me for my time, effort, etc, if i credit to long t… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
repossession - vehicle was repossessed, debt sold several times,
repossession - vehicle was repossessed, debt sold several times, now getting phone call that "they" are coming to my home for "legal papers" to be signed. statute runs out 3/30/16. what papers could t… read more
Shawn P. Adamo
Shawn P. Adamo
CEO
Bachelor's Degree
18 satisfied customers
I had a business that over the past couple of years we have
I had a business that over the past couple of years we have shown a loss. I'm in the process of purchasing a home my lender is requesting I show that the business is closed out. Can you tell what need… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
2,222 satisfied customers
My husband and I opened a restaurant in December of 2005, under
My husband and I opened a restaurant in December of 2005, under a sole prop. In March of 2006, we closed the sole prop, and opened an LLC. This is how we ran the restaurant until we closed in 2008. Ab… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
2,222 satisfied customers
I need to know if I can adjust monies that came into a bank
I need to know if I can adjust monies that came into a bank account for a dormant C Corp and consider them as monies for a new C corp (with a fresh start and new shareholders) for 2013? The business o… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
2,222 satisfied customers
I am in process of forming an LLC in USA. This LLC will have
I am in process of forming an LLC in USA. This LLC will have only members but no employees. This LLC will outsource it's business to another country. Business will be run by outsourced country through… read more
R. Klein, EA
R. Klein, EA
Accountant
Master's Degree
480 satisfied customers
I am doing year end adjustments for an S-corp, that last year
I am doing year end adjustments for an S-corp, that last year issued a K1 for net income of $750 and non-deductible portion of meals and entertainment of $2400 and non-deductible expenses of $800. Wha… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
Hi. I have started an LLC and have incurred substantial start
Hi. I have started an LLC and have incurred substantial start up costs, paid personally. I've recorded these as a debt on the company's balance sheet. Now that I am beginning to generate some revenue,… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
Heres my question. 3 people involved 1. Myself (owner
Here's my question. 3 people involved 1. Myself (owner of dangerbrain llc) 2. Bill (a friend and person that I perform with in a touring vocal group called Boyz Nite Out) 3. Kurt (a friend of Bill's) … read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
I run a small business with my wife. My parents started it
I run a small business with my wife. My parents started it 18 years ago and it was incorporated in their name. All stock is in their name. I have been running this as my own business for the past 12 y… read more
Eric
Eric
Financial Manager
Bachelor's Degree
559 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x