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...
IRS Audits
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...
HOW THE IRS USES AUTOMATION TO REVIEW TAX RETURNS
While the IRS does not have the manpower that it had 20 years ago, there are certain taxpayer actions that can trigger an audit by the Internal Revenue Service. As technology continues to evolve at a significant rate, the IRS has increased its use of automated...
IRS UNDERSTATES COMPLIANCE EFFORTS USING “REAL” AND “UNREAL” AUDITS
The National Taxpayer Advocate (NTA) has published several opinions about the issue of “real” vs. “unreal” audits. Under Internal Revenue Code (IRC) § 7602(a)(1), the IRS has the authority to examine any books, papers, records, or other data that may be...
TAX AUDIT ISSUES FOR CASH BUSINESSES
The IRS is aware that cash-intensive businesses have more opportunities to commit tax fraud. IRS tax audits frequently target these types of businesses and have special techniques used to spot errors or underreported income. Tax Issues for Cash Businesses Cash...
THE TOP 5 REASONS THE IRS WILL AUDIT YOUR BUSINESS
You can’t completely eliminate your risk of being audited by the IRS. However, some taxpayers are more likely to being audited than others. If you have a higher audit risk, make sure you double-check your numbers and have your supporting documentation ready in...