Tip Category: The Audit When it comes to the perception of IRS audits, conjecture reigns supreme. The combination of the complex tax code and a government agency with the full authority to enforce it leads to some pretty wild ideas. Here are five audit myths that, if believed, can cost you during an audit: Myth 1: Audits …
Category: Audit
Seeing Inside the Mind of the IRS
Using the IRS Audit Technique Guidelines (ATGs) Tip Category: The Audit While most of us are never audited, when it happens we can often feel overwhelmed. Remember that the IRS auditor performs these audits every day. They know what to look for, and may ask leading questions that are easy to answer incorrectly. Here are some …
Audit Proof Your Tax Return
Tip Category: The Audit. No one likes the stress involved when your tax return is under the audit spotlight. Here are some ideas to avoid some of the more common audit triggers. Report everything that has an informational tax return. If you are like most Americans, you will receive numerous 1099s and W-2s in the mail. The …
No Check! Where’s Your Proof?
What you need to do NOW! Tip Category: The Audit Preparing to file your tax return is a great time to ensure you have proper documentation to substantiate your tax deductions. This is important as many banks start deleting online documentation that is over one year old. Background Two things have happened over the past ten …
Save Those Receipts!
These tips are money in your pocket Be prepared. The moto of the boy scouts AND your motto when in comes to an IRS audit. Here's what to do. Tip Category: The Audit When it comes to taking qualified deductions on your tax return, having proper documentation to prove your expenditure is a must. Here …
Amending a Tax Return
Not always needed or wise To amend or not amend. That is the question...and the answer is not always obvious. Read on. Tip Category: Audit There’s usually an element of relief after your annual tax return has been filed. But what do you do if you find an error on your tax return? Should you …
Five Steps to Take if You’re Audited
Here are five things to do, if the newly staffed IRS audits you. Tip Category: Audit Getting audited is no one’s idea of a good time, yet you can minimize the stress if you take the right approach. Step 1: Understand why and when. While it's possible you were selected randomly, it’s more likely you were …
Audit Target: The Sole Proprietor
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 …
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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