On Wednesday, July 20, 2022 at 2:32:01 AM UTC-4, maxed_out41 wrote:
I have a business checking account and was wondering is there any tax advantage in having my direct deposit from my employer going into that account instead of my regular personal checking account?
--
<< ------------------------------------------------------- >>
No advantage, but a significant disadvantage. If the IRS audits your tax return and looks at your business income, it will assume that all deposits into the business account are business receipts that should be reported on Schedule C (or the appropriate
entity return). You will then have to "prove" that these deposits are not business receipts.
Ira Smilovitz, EA
Leonia, NJ
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)