You may have received a letter from the IRS stating that it found a discrepancy in your 1099 or 1040 return. Rather than fearing the worst, open the letter and read what it says carefully. People make mistakes, and there is no need to panic. While it could involve...
IRS Audits
Two ways to reduce the odds of a tax audit in 2022
Filing taxes is never fun, but last year was arguably one of the more difficult in recent history. Between federal programs to help provide aid during the pandemic and business owners likely needing to take losses in creative ways, many have voiced concern that the...
Tax year 2021 will be complex. Get ready for an IRS audit.
You may already know there will be a problem. There were a number of issues this year that will naturally lead to many individual tax returns being much more complex than usual. Unfortunately, that complexity can bring on an IRS audit. Here are several potential...
The various types of tax audits
Receiving correspondence from the Internal Revenue Service (IRS) can be a very daunting experience. Letters from the IRS often contain unwelcome news. For example, the notice may be about an adjustment to taxes that means you now owe a considerable sum of money....
Why do people get audited by the IRS?
Nothing strikes fear into the hearts of people in Georgia and around the country like the news that their tax return is going to be audited by the IRS. Right off the bat, you will probably ask yourself a lot of anxiety-inducing questions: What did I do wrong? How...
How to prepare for an audit
The thought of an audit from the IRS commonly leaves people with a massive sense of dread. Audits have a notorious reputation as one of the most challenging legal hoops that someone needs to jump through, and a bad result in an audit can have considerable...
3 Audit red flags for the self-employed
Being your own boss comes with a great deal of independence and freedom. You can work at your own pace, choose your own workspace and set your own rates. However, the privilege of being self-employed also comes with some significant responsibilities. As a business...
WHAT IS THE IRS VOLUNTARY DISCLOSURE PRACTICE?
The legal duty of taxpayers to fully comply with federal tax laws is the foundation of “Voluntary compliance” in the American tax system. Most taxpayers, in fact, voluntarily comply with this duty, however, there are always some that fail. The IRS has an impressive...
BUSINESS RELATED IRS AUDIT TRIGGERS
The mere act of placing the envelope that contains a tax return into a mailbox may be a cause of stress for most taxpayers. None of us want to do anything that will alert the IRS to take a closer look at our tax returns. IRS examinations, or “audits” as they...
SOME FACTS ABOUT IRS AUDITS
The IRS audited approximately 1.0 million tax returns in Calendar Year 2017. This was less than 1% of all returns, approximately 0.5 percent. The IRS conducted 74.8 percent of Fiscal Year 2018 through correspondence audits. Of these 1.0 million audits of tax...