Tax Auditing Reasons You Would Not Expect

There are common reasons that could get someone to be a target of auditing from the IRS including earning so much the previous year, claiming high amount for deductions and categorizing the living room as your home office. You should keep your eye on these common reasons to make sure you do not get an audit but expert in the tax industry said that the IRS is now targeting new things for 2018 that taxpayers might not anticipate. Jackson Hewitt’s chief tax officer, Mark Steber, said that IRS was quite busy last year. Taxpayers are recommended to have audit protection insurance in order to avoid a situation where they are unguarded from unexpected costs.

One of the reasons for an audit could be a cash stash you kept overseas. An accounting firm’s managing director, Bill Smith, said that offshore bank accounts could raise a red flag with the IRS. This came after the United States made a partnership with foreign regulators which gave them inside info regarding overseas stash.

If you are benefiting financially from sharing economy, you could be audited. TurboTax surveys revealed that 3.2 million people are part of the trend known as gig economy. The same survey expects the figure to increase to 7.6 million when 2020 comes. People who are working as an Uber driver are classified as self-employed by the IRS thus their earnings are also subjected to taxes. This is why the form 1099 should be included in their filings or else the IRS could take interest in your return.

Lying about purchasing health insurance could be a red flag to the IRS. This is one of the newest issues in 2018 that could be a reason for a taxpayer to be audited. This is not something to be taken lightly because lying could get you in trouble as the agency can easily check, and they are checking, if one has health insurance as indicated in their tax form.

Declaring yourself as a professional real estate agent is not a good idea because, though you might benefit from it especially if you have money-losing properties, you could be caught and be audited. At the end of the day, it is best to have audit protection insurance to make sure you are covered in case of an audit.

Know The Tips On Selling Insurance When You Transition To Its Sales Force

Choosing a career in selling insurance can be a real gamble even for those with existing sales experience. You need tips on selling insurance to make a big bang on this business. While many successful agents of the country make around $1-million yearly, there are a few who venture into this business and end up with less or nothing per year.

Life insurance may be a career with good reputation; however, it is not an easy job. Greg Jensen, managing partner of a New York-based life insurance company based in South Florida had reviewed applications of more a thousand people in 2007, but only hired 45 to work on its sales force.

Who Are Those Likely to Succeed?

Who are these individuals who will do well with insurance sales? Auto sales specialists, copier sales reps, mortgage loan officers, and real estate agents may be the ones who have the capacity to position themselves and network, Jensen replies. “They are good ones who have established good rapport with their clients and have the best chances for success,” he says.

A perfectly fit to that description is Sonia Montana, who works as a New York Life agent in Miami. She left her job as a realtor in 2005 and says she has a large database of clients that have already trusted and liked her. She feels confident she can offer her clients a different product. She may know some tips on selling insurance with all her database.

Working as a life insurance agent is a lot easier than those in car sales, mortgage lending and real estate where they get to work on evenings and weekends. “This job is a lot flexible as they have more time with their families,” Jensen says.

Other Backgrounds and Common Traits

Dan Strubberg, director for State Farm Insurance based in Bloomington says “successful agency sales reps come from outside the sales world as well. They are those who struggle for recognition, who like to risk the business venture, and who remain competitive up till this day.They thrive to connect success and hard work and prefer to help people solve the risks of everyday life,” he says.

There are also other professionals such as bank managers, educators and nurses, who wish to work as insurance agents. Whatever field you may have come, you need to know tips on selling insurance to make you really successful.