Audits

Think tax forms are confusing? You’re not alone. A recent article highlights several commonly encountered areas of frustration. Unfortunately, some common mistakes might also trigger the IRS’ attention. For example, a health savings account is set up with tax savings in mind, including tax-free withdrawals for specified or authorized medical expenses. However, it involves two […]

Based on a recent press release from the Internal Revenue Service, tax return software seems to be the wave of the future. Specifically, the IRS announced the launch of a program called Free File, which will allow taxpayers with an adjusted gross income of $62,000 or less to use the software for free. The software […]

Non-profit organizations are supposed to have fewer procedural hassles and controversies with the Internal Revenue Service by virtue of their federal tax-exempt status, right? Not necessarily, according to a recent article. Specifically, the article discussed new substantiation rules proposed by the IRS that would require charitable entities to collect and store their donors’ social security […]

Some tax preparation and e-filing providers may market their product as a potential safeguard against IRS audits. For example, TurboTax includes a page on its website devoted to the top five ways to avoid a tax audit, one of which is ensuring accurate figures with the help of a program like TurboTax. Such promotional materials […]

In a recent post, we’ve discussed some concerns with the IRS’ treatment of taxpayer questions, including the difficulty in reaching an IRS employee through their hotline. For individuals attempting a proactive approach to their tax questions, there may be another route. Specifically, the IRS offers an email service where it provides tax tips at regular […]

A few years ago, a veterinarian and fossil enthusiast decided to donate some of his prized collection of trilobites to the California Academy of Sciences. They were apparently worth quite a bit of money — he valued the four he donated in 2006 at $136,500, and eight more, which he gave the group in 2007, […]

When it comes to the Internal Revenue Service, is no news the same as good news? If the topic is audits, the answer might possibly be yes. Now that another April 15 has come and gone, many individuals may be releasing a sigh of relief from hearing no news from the IRS. For business owners […]

It is 2015, which means that the deadline to file your federal income tax return in about three and a half months away. Some people may plan on filing soon, to get it out of the way early. Nobody should pay more in taxes than they actually owe. One way to reduce your tax bill […]

An IRS audit can seem like it came out of the blue. “Why me?” is a common question for individuals and businesses facing federal scrutiny into their income tax returns. The IRS has several ways of selecting the tax returns it chooses to audit. These include: Computer scoring.Returns get screened by computer software called the […]

You get the notice that no taxpayer wants to see: you are being audited by the IRS. This would be distressing news for anybody. It is understandable if the word “audit” conjures up visions of a long, complicated process with an expensive tax bill at the end. Maybe this happened because of a misunderstanding or […]