Lottery
Kansans: Beware of telephone scams
Atty. Gen. Carla Stovall's office is warning Kansans about an illegal lottery scam.
A Kansan received a call from a person claiming to represent a lottery in a foreign country. The representative stated that the Kansan had won $250,000 and they just needed to pay $10,000 to cover the taxes. Luckily, the Kansan hung up and didn't give them a credit card or bank account number that the representative asked for.
Stovall reminds consumers that the only legal lottery in Kansas is the state-sponsored Kansas Lottery.
If persons have received solicitations to play foreign lotteries, call the Consumer Protection Division at (800) 432-2310.
Small businesses
How to anticipate an IRS audit
Knowing in advance what can trigger a small business audit and what auditors are likely to look for can help you conduct your business in a manner that minimizes audit risk, according to the Kansas Society of Certified Public Accountants.
Here are several scenarios that may capture the Internal Revenue Service's attention:
- Unreasonable compensation. IRS auditors look for "unreasonable compensation" for officers of family-held corporations. If the IRS decides that an officer's salary is unreasonably large, it may disallow the company's expense deduction for the excess and treat it as a nondeductible dividend contribution.
- Personal entertainment, meals or vacations disguised as business expenses. Be sure that you are well-versed in the rules for combining business and pleasure and that you have all the records required to support your expenses.
- Employees misclassified as "independent contractors." If you rely on independent contractors in your business, be sure you read IRS Publication 1976 which outlines the rules.
Audit Technique Guides can be accessed online at www.irs.ustreas.gov or purchased by mail by calling the U.S. Government Printing Office at (202) 512-1800.
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