TaxEsq The Tax Law Network a service of Ronald J. Cappuccio, J.D., LL.M.(Tax) Counsellor at Law	1800 Chapel Avenue West Suite 128 Cherry Hill, New Jersey 08002 USA (856) 665-2121 Fax (856) 665-9005 E-mail: Ron@TaxEsq.com

Online Articles Tax Issues Index Confronting the IRS IRS Offers in Compromise Handling a Notice of Levy Bar and Restaurant Audits Tax Audits Asset Protection IRS Forms 1031 Like Kind Exchange of Real Estate E-Commerce and Internet Law Index LLC - Limited Liability Company E-Commerce and Internet Law Small Business and Family Business Issues Index QuickBooks, Timeslips, and Financial Accounting Software Updates No Cost Optional Employee Benefits Death Benefit Plans for Business Employee vs. Independent Contractor Status Audits Stock Rollover Saves Capital Gains Taxes Estate Planning Index Probate and Estate Administration Insurance Funded Death Benefit Plans Scams and Tricks to Get Your Money Choose the Best Legal Entity for your Business

Liquor License Holders Targeted The New Jersey Division of Taxation is on the attack again.  Fifty (50) new employees have been hired to audit bars and restaurants with liquor licenses to extract more taxes from the business of their owners.  The Division of Taxation attempts to take advantage of the poor record-keeping of many small businesses by grossly exaggerating income during the audit.  This causes an increase in Sales Tax, Corporate Income Tax, and Gross Income Tax of the owners of the business! Not a Simple Audit The Audit process starts with a Notice from the Division of Taxation scheduling an audit.  Unlike a normal audit, this audit is designed to "prove" that the business is understating income.  Using elevated profit percentages, the auditor greatly inflates gross income resulting in a large tax increase.  When penalties and interest are added, the result could cost a small fortune. How Should You Respond? Although some business owners mistakenly believe that "cooperation" by not being represented will make the business look better, that is Not True! Do not call or contact the Division of Taxation Investigator. Do not let the audit start without Legal Representation. Engage a tax attorney, in addition to your accountant to represent you during the audit process. Defer all of the Auditor's questions to your tax attorney and accountant. Gather your accounting records and all tax returns for the years being audited.

E-Mail: TaxEsq

© Copyright 2000 All Rights Reserved Ronald J. Cappuccio, J.D., LL.M.(Tax) Counsellor at Law 1800 Chapel Avenue West, Cherry Hill, New Jersey  08002    (856) 665-2121http://www.taxesq.com