Accountle
Enrolled Agent - IRS Representation
Client Case Study - 02
$15,328 in Tax Savings for a Sole Proprietor
A sole proprietor managed his own bookkeeping. Unclosed invoices, miscategorized transactions, and no reconciliation left his books showing $55,985 in income that did not exist. We cleaned everything up. His taxable income dropped and he saved $15,328 in taxes.
$
0
IRS BALANCE ASSESSED
$
0
FINAL BALANCE DUE
$
0
REMOVED THROUGH REPRESENTATION
The Problem
A self-employed client managed his own books throughout the year. Invoices were not closed correctly, owner contributions were miscategorized, and accounts were never reconciled. When it came time to file, his records showed over $55,985 in income that did not actually exist.
The Solution
We reconciled the bank accounts, recategorized the transactions, and reviewed the accounts receivable in full. Once the records reflected reality, the gross income was corrected.
The Result
The inflated income was removed from the books. The client saved approximately $15,328 in taxes he should never have owed in the first place.
Errors are expensive. Fixing them costs more than doing it right from the start.
If your books are behind, your filings are uncertain, or you have received a notice you do not understand, let’s talk.