How to Prepare for an IRS Audit

February 11, 2012 by  | Leave a Comment Filed under: Taxes 

Filing taxes is a complicated matter, and it’s easy for taxpayers to make mistakes from time to time. Given the ease with which mistakes are made, the IRS has an audit system that will help to determine whether a taxpayer has been filing correctly. If you’ve been chosen for a tax (read on...)



Nine Rules When Dealing With The IRS

January 7, 2012 by  | Leave a Comment Filed under: Taxes 

1. Never miss a deadline with the IRS. Missing a deadline will only give the IRS further reason to cause problems. 2. Never lie or attempt to intentionally deceive the IRS. The consequences of tax fraud are tremendous including prison time. 3. Always report all income that the IRS knows about or (read on...)

Plan Your Taxes Well to Avoid an IRS Audit

December 18, 2011 by  | Leave a Comment Filed under: Taxes 

With the year coming to an end, many taxpayers are excited at the prospect of receiving their tax refunds from the Internal Revenue Service. Below are some things that one should not have on their return list. A gambling loss deduction always draws the attention of the IRS and brings audit (read on...)

IRS Use of Small Business Electronic Accounting Files in Audits

December 18, 2011 by  | Leave a Comment Filed under: Taxes 

Since 2010, the IRS has been requesting small business electronic accounting files in audits. IRS agents have even been trained in using QuickBooks and Peachtree accounting files in examinations of small business taxpayers. The main issue most practitioners have with providing these files is that (read on...)

What You Need to Understand When Being Audited

November 11, 2011 by  | Leave a Comment Filed under: Taxes 

Few words can conjure up that queasy feeling in your stomach more easily than the word “audit”. The fact is the IRS conducts millions of audits or examinations each year for various reasons. If you recently received a letter from the IRS and are unsure what the next step should be, (read on...)

How to Manage the IRS in Case of an Investigation

September 12, 2011 by  | Leave a Comment Filed under: Taxes 

Over 1 million taxpayers are audited every year. Most of those audited are audited through a letter. The IRS sends a letter to the taxpayer, requesting further information concerning item(s) in the tax return. If the taxpayer being audited responds to such a letter with the required information, (read on...)

Handling an IRS Audit

September 12, 2011 by  | Leave a Comment Filed under: Taxes 

Every year, the IRS audits many taxpayers. In 2010, about 1.6 million were audited for the 2009 tax year. This represented 1.1% of all taxpayers. Many of those audited were high income earners. The IRS audits taxpayers for various reasons: some taxpayers are audited out of a random draw, some are (read on...)

What to Do When You Are Contacted by the IRS Criminal Investigation Division

August 26, 2011 by  | Leave a Comment Filed under: Taxes 

The IRS implements a meticulous system that seeks to identify all tax offenders. The IRS categorizes tax offenses in two categories. Negligence is when a taxpayer makes an error either by having erroneous figures or mathematical calculations in their tax returns or erroneously misses various (read on...)

IRS Interim Letters Cause More Confusion As Opposed to Resolving Inquiries

August 26, 2011 by  | Leave a Comment Filed under: Taxes 

The IRS internal rules require every inquiry letter sent to them by a taxpayer to be responded to within 30 days of its receipt. The rules also provide that should the department handling an inquiry be unable to provide a response within the set timelines, they should send an interim letter to (read on...)

Four Ways of Avoiding an IRS Audit

August 26, 2011 by  | Leave a Comment Filed under: Taxes 

There are various reasons as to why the IRS singles out a tax return for auditing. Business incomes and high income earners are usually more likely to be audited by the IRS as compared to individual taxpayers. An IRS audit can be a huge burden, as it may entail unearthing documentation and (read on...)

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