Earlier this month, the federal government entered a sequestration period, which effectively translates to big spending cuts for certain agencies, including the IRS. While the budget cuts have let to speculation that tax refunds could be delayed for millions of Americans, the sequester could be good news for taxpayers who are concerned about being targeted [...]

In an effort to close the $450 billion tax gap, the Internal Revenue Service has announced that it will increase audits of small businesses in 2013. The IRS will be taking a closer look at a number of key audit areas in which underreporting of taxes is most likely to occur. If you’re a small [...]

Nothing sets off panic in the heart of a taxpayer quite like receiving official correspondence from the Internal Revenue Service. Images of being grilled by an IRS auditor in a dank office are sure to dance in your head.  But if you do receive an envelope in the mail from the IRS, don’t panic. There are a [...]

Nothing can induce fear more quickly than finding a letter from the Internal Revenue Service in your mailbox. Just the phrase “tax audit” can trigger anxiety and panic, often resulting in unnecessary stress and confusion. Statistically speaking, the average person has only a relatively small chance of being audited, with the majority of audits being conducted by mail. IRS audit fears can largely [...]

The risks for IRS audits have been increasing steadily across all income levels, although the wealthiest Americans face the greatest risk increase for an income tax audit according to data released by the IRS.  Another interesting trend seen in the data is that non-profits and small corporations are being audited more and more frequently over the last [...]

Are you worried about being audited by the IRS? Do you know whether or not you fall into a high-target area for an IRS audit? Even though most people will never be audited during their lifetime, there are certain tax filing categories that the IRS targets more frequently than others. If you fall into one [...]

Wrongly reporting income or claiming false deductions, expenses and credits on tax returns is not worth the severe penalties that may result from doing so.

Many people attempt to “sneak one past” the IRS, but anyone who attempts to hide real estate, bank accounts or other assets that he owns is asking for trouble, plain and simply. The IRS has a number of tools and methods that facilitate the uncovering of an individual’s assets, and the risks involved in hiding [...]

Receiving an audit notice from the Internal Revenue Service is not something anyone would wish on their worst enemy but the reality is audits do happen and if you are knowledgeable and prepared, you can get through the audit and come out on the other side safely.

Tax audits are becoming a more common occurrence these days as IRS computer systems are getting more powerful and efficient at detecting problems with tax returns. The IRS has a complex system that matches what taxpayers report on their tax return with what others claim to have paid those individuals (information returns processing system or [...]