Auditors will consider all deposits to your bank account as income. Keep records of gifts from parents, refunds on returned merchandise and other similar transactions to show the auditor why that item was not income.
The most common audit adjustment comes from mileage claimed on the return. If I ever have a client who is audited [...]
Also filed in
|
|
Your consultation will cover:
Types of audits and how to prepare for the best results.
How to avoid future audits. Know what caused the IRS to select you for audit.
When to use a professional and when to represent yourself
How to appeal the audit if you are unsatisfied with the IRS results.
We have learned after 35 years representing [...]
Also filed in
|
|
Payroll tax audits are conducted to:
Verify that all money paid to employees is being reported to the IRS.
Verify that workers are being correctly classified as employees rather than independent contractors.
Verify that employers and employee are filing all required returns.
Making sure withholdings for Social Security and Medicare are being correctly reported and paid in on a [...]
Also filed in
|
|
Use a tax program. Manually prepared returns are pieces of paper begging for attention.
Don’t believe all the advice that shows up on the internet and news shows during tax filing season. Some of the advice I have heard would actually increase the likelihood of being audited.
Extend the filing of your return. I have yet to [...]
Also filed in
|
|
The most common reasons include:
If you are self employed and deal in cash such as restaurants, hair salons and contractors, you are in a high risk of audit situation. The obvious reason—it is easy to put the money in your pocket and not report it on your return.
If you make large cash deposits into your [...]
Also filed in
|
|
I was audited by the IRS months ago and have not heard from them. What should I do?
The longer it takes the IRS to get back to you the more likely your audit assessment slipped through the cracks. Often IRS personnel are reassigned to other duties and their case load is dropped by the [...]
Also filed in
|
|
What is audit reconsideration and when should I file for one?
A taxpayer can file for audit reconsideration when you want the IRS to examine your return again. The reasons you may want the IRS to open your return for a second time include: information that would have reduced your tax liability on the original return [...]
Also filed in
|
|
Avoid having the audit at your home. We suggest to our clients to have the audit conducted at our office.
After consulting with a professional make the decision to extend the audit or not. If an extension is requested before the dead line and you have reasonable cause, it is not a mark against you. However, [...]
Also filed in
|
|