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...
When You Have Serious Tax Issues, You Need Someone Who Knows Tax Law
IRS Audits
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...
TYPES OF IRS TAX AUDITS
There are generally three types of IRS tax audits. Regardless of which type of audit you are undergoing, a tax attorney can handle communications with the IRS employees on your behalf and give your guidance during this process. Correspondence Audits Correspondence...
WHAT DO IRS REVENUE AGENTS DO?
IRS Revenue Agents conducts tax audits of individual and business taxpayers. They are not responsible for collecting delinquent taxes and instead work to assess the correct amount of tax. Revenue Agent Qualifications Revenue Agents generally have a bachelor’s degree...
IRS ESTATE TAX AUDITS
Estate tax returns can be audited just like any other tax return. However, there are some unique issues to consider when you’re involved in an estate tax audit. Reasons for Audit Larger estates are more likely to be audited. Estates valued below $11.4 million in 2019...
IRS AUDITS FOR UNREPORTED INCOME
Unreported or underreported income is a common reason taxpayers get audited by the IRS. These cases can range from minor mistakes or serious problems. In some cases, the IRS could even pursue tax fraud penalties. How the IRS Detects Unreported Income The IRS receives...
IRS AUDITS FOR UNUSUAL DEDUCTIONS
Taxpayers are entitled to their proper share of tax deductions. But when your deductions are disproportionately large when compared to your income, it could increase your risk of an IRS tax audit. The following are some deductions that may cause an IRS audit red flag...
AUDIT RED FLAGS FOR SELF-EMPLOYED TAXPAYERS
Self-employed taxpayers who use Schedule C have a higher audit risk than other taxpayers. You have the right to claim all of your ordinary and necessary business expenses as a deduction, but the IRS is also more likely to select your return for a tax audit. Your best...