Savvy or Surrender - Your Guide to Profit, Cash Flow, and Tax Savings

5 Audit Triggers Contractors MUST Avoid: Episode 13

Steven Young Season 1 Episode 13

Title: 5 Audit Triggers Contractors MUST Avoid 

Season 1 Episode 13

❗Don’t forget to download the episode — that way you never miss the game-changing cash flow tips that keep your business running strong. 

Episode Summary:
In this episode of the Savvy or Surrender Podcast, host Steven Young breaks down the five most common mistakes that increase your chances of getting audited by the IRS as a business owner—especially for contractors and those in the trades. Steven explains how audits are triggered, what red flags the IRS looks for, and provides actionable tips to avoid costly mistakes. From underreported income to messy records and misclassified workers, this episode is packed with practical advice to help you stay compliant, organized, and stress-free come tax season.

Timestamps:
00:00 – Introduction: Why audits happen and what to expect
01:18 – Welcome to the Savvy or Surrender Podcast
02:36 – IRS audit algorithms and how they target businesses
03:58 – What to expect from a typical audit letter
06:44 – Red Flag #1: Underreported income (1099s, payment processors, cash jobs)
09:44 – How to handle 1099-Ks from Venmo, PayPal, and more
11:40 – Bookkeeping software recommendations
13:10 – Red Flag #2: Excessive or unusual deductions (auto, equipment, travel)
15:00 – How to document large write-offs and avoid expense clumping
18:24 – Red Flag #3: Misclassifying workers (contractors vs. employees)
20:23 – The IRS test for employee vs. contractor
23:33 – Why you need W-9s and written contracts
25:33 – Red Flag #4: Messy or missing records (receipts, mileage logs, estimates)
28:21 – Best practices for digital recordkeeping
31:02 – Red Flag #5: Home office deduction mistakes
33:14 – How to correctly claim your home office and storage space
35:28 – The importance of consistency, documentation, and honesty
38:00 – Outro: How to get more support from the Savvy Tax Hub

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