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 …
Category: Audit
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 …
A Letter from the IRS!
What steps you should take Yikes! You just got a letter from the IRS. Here is what you should do. If you receive a notice from the IRS, do not automatically assume it is correct and submit payment to make it go away. Because of all the recent tax law changes and so little time …
Defending Fair Market Value
Fair market value is often one of the IRS's go-to items when auditing you. Here is what you need to know. Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with …
Oops! I Wish I Knew That.
There are a few areas within the tax code that can cause an unpleasant surprise when encountered. Thankfully they do not happen too often. Here are six you should know about. Here are six tax topics that seem innocent but can cause problems if not handled correctly. 1. Gambling winnings. If you receive a tax form …
Get Your Business In Shape With an Internal Audit
When you hear the word audit, what comes to mind? Sharp-eyed accounting nerds digging through business records and interrogating staff? Disruption of your routine at the busiest time of year? Although audits by external accounting firms can be time-consuming and sometimes difficult, firms often reap substantial benefits by identifying and correcting problems before outside auditors …
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To Amend or Not Amend?
Is it always a good idea to amend your tax return if you find an error? 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 always file an amended return? Here are some things …
Avoid Name Mismatch Audits
If you were married, divorced, or changed your name for any reason during the past year, do not forget to file to change your name prior to preparing next year's tax return. The IRS automatically conducts a name match on the first few letters of your last name. The problem If the name on your …
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