The IRS is hiring more auditors. So who are they going to target? The small business owners. Here are some tips. Tip Category: The Audit Each year the IRS publishes their activities in a publication called the Data Book. And each year for the past number of years the number one target of audits are …
Category: Audit
Stop the Clock
Your most important defense against an audit The best defense against a tax audit? Stop the clock. Here is what you need to know. Tip Category: Audit In a tax court decision, a judge ruled that a joint tax return not signed by both spouses is not a validly filed tax return.* This seems like a …
Understanding Tax Terms: Contemporaneous Records
Everyone needs to know what this means! The IRS requires contemporaneous records to prove deductions and credits. That means you can't go back later to get a copy of a receipt you forgot. Here are some tips. If you have problems getting to sleep at night and you turn to the IRS tax code for …
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IRS Audit Rates – Don’t get complacent…resurgence is underway
The IRS audit rates are still at historic lows, but all that is now starting to change. Here is what you need to know. Observations Fewer audit examinations obscure the reality that you may still have to deal with issues caught by the IRS’s automated computer systems. While not as daunting as a full audit, you'll …
Continue reading IRS Audit Rates – Don’t get complacent…resurgence is underway
Five Reasons Why the IRS Will Audit You
Underreported income and math errors are key mistakes that can trigger an audit from the IRS. Having your taxes prepared by a professional can significantly reduce this risk. Each year, the IRS audits over 1 million tax returns. With agency resources shrinking, the IRS is more selective when choosing which tax returns to audit. Knowing …
I’m Being Audited by the IRS!
Less than 1% of more than 145 million individual tax returns filed during 2021 will be selected for audit. The percentage increases for higher income taxpayers, along with tax returns in areas of specific interest to the IRS. Here's what you should remember if you receive a notice from the IRS of an impending audit:IRS …
Toss This. Not That. –
Your guide to post tax-filing record retention The ensure you're ready for an audit, tax returns should be kept indefinitely and supporting documents should be kept a minimum of three years. Before you close this year's tax file there is still some work to do. If the IRS or state revenue department selects your return …
The $24,000 Tax Time Bomb
A key lesson within EVERY tax surprise Within each tax surprise is a common lesson. Here is an actual story that cost $24,000 and a lesson for everyone. What follows is a true story. A story with a sad ending. But one that has a lesson for everyone. Stick with the story, with a high …
You Owe Us, Not Them!
State tax authorities clamp down If you work remotely in another state or are thinking about changing your residence from one state to another, you may be caught in the middle of a major state tax audit. If you keep a home in your original state or you later decide to return, you could have …
The Household Employee Problem
Don't get caught by the nanny tax This often overlooked bookkeeping and payroll tax requirement can cause a tangle of tax problems if not handled correctly. Could you be impacted? This is what you need to know. Nanny tax explained In an effort to capture income from household employees, the tax code requires you to …
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