Audits

Taxpayers may be aware of some of the common triggers that lead to an audit by the Internal Revenue Service (IRS). These can include a large amount of wealth, having foreign assets, and small business ownership. In addition to these common triggers, the agency has also put technology to use with its new CP200 program. […]

Think the IRS is about to conduct an audit of your tax returns? The following basic questions and answers can help you get through the process with minimal stress. What is the purpose of an audit? The Internal Revenue Service (IRS) conducts an audit when there is a tax discrepancy. The agency’s decision to review […]

A tax audit is essentially an accounting procedure that examines your financial records to ensure you filed your tax return accurately. If the IRS finds errors or purposeful mis-reportings, you’ll have to pay the recalculated return amount and any interest. The IRS can choose to audit your tax return for a number of reasons, including: […]

Even if you do everything right, there’s no guarantee your tax return won’t be audited. After all, the IRS does choose some returns at random for auditing. There are, however, certain red flags that can increase your risk of an audit. What are the most common red flags? One is taking overly large tax deductions. […]

A tax audit is hardly a deal breaker for moving forward with life. After all, an audit doesn’t necessarily mean you owe more tax or did anything wrong. And of course a celebrity businessman who has famously been under near-constant audit for the last two decades has just been elected president of the United States. […]

A few years ago, Congress got the idea that businesses could be more accurate in reporting all of their income. The concern was that there was a significant gap between taxable income and income reported on tax returns. To respond to this concern, Congress added a provision to the tax code to require credit-card companies […]

Running a business can have stressful aspects under any circumstances. Certain things though can add to the stress a business owner experiences. One is finding out from the Internal Revenue Service that their business is going to be audited. Business audits by the Internal Revenue Service can be looking at all different kinds of things […]

It’s no secret that the IRS doesn’t have quite a much capacity as it once did to conduct tax audits. We wrote about one aspect of that in our March 22 post on businesses taxes. But what are the odds of a tax audit? Here are three things to know, in the form of a […]

It’s common knowledge now that the overall number of tax audits is down due to IRS budget cuts. We noted that fact last month, in our March 22 post on business tax audits. Audits of individuals are down as well, as the IRS deals with the budget cuts it has experienced in recent years. Tax […]

If you find yourself faced with a sensitive situation that is colloquially known as an “eggshell audit” then read on — in this post, we will explain what that kind of tax audit it is and who should handle it. Eggshell audit is not a formal term. But it is commonly used to describe a […]