As efforts to flatten the contagion curve of coronavirus close businesses and schools across the country, many people are watching their paychecks disappear, their investments fall, and their sense of security slip away. The IRS is aware of the intense effect the coronavirus is having on families, and to help; the agency has ... Read More
New Tax Rules Give IRS More Time to Conduct Audits
There are a lot of people who really don’t enjoy paying their taxes. However, while most people would love to get more in return from the IRS and keep a lot more of their hard-earned income for themselves, most taxpayers still comply with the rules and send off their tax return to the IRS before the April 15th deadline every ... Read More
Why Has The IRS Increased Audits on the Middle Class?
The IRS has chosen you for an audit. The mere words strung together can cause just about anyone to curl up in a small ball and tremble in fear like a gerbil. For some people, being audited might just to be one of the scariest experiences someone could go through in his or her lifetime. While being audited by the IRS could be a ... Read More
IRS Says Fewer Audits Add Up to $3 Billion Revenue Loss
The words "tax audit" are enough to send shivers down anyone's spine but this year, taxpayers have less to worry about. Thanks to budget cuts, the number of returns selected for an audit has declined sharply in recent years. According to the most recent IRS fiscal report, approximately 1.4 million people were audited in 2013, a ... Read More
IRS Audits Target Thousands of Adoptive Families
The Adoption Tax Credit was introduced in 1996 as a means of helping low and middle-income families offset some of the costs of the adoption process. While the credit is meant to ease the financial burden of adoption, a report from the Taxpayer Advocate Service suggests that claiming this key tax break may have inadvertently ... Read More
IRS Sequester Could Result in Fewer Audits
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 ... Read More
IRS Plans to Step Up Small Business Audits in 2013
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 under-reporting of taxes is most likely to occur. If you’re a small business owner, you need to be aware ... Read More
Difference of a Tax Audit, Correspondence Audit & Adjustment Letter?
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 variety of different ... Read More
The Top Five Tax Audit Myths
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 ... Read More
IRS Audits On the Rise for Wealthy, Small Corporations and Non-Profits
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 ... Read More
Who Gets Audited by the IRS?
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 of those categories, ... Read More
When Income Reported on Tax Returns Doesn’t Match Bank Records
If you think that you can get away with reporting income on your tax return in a manner that is different from what your bank deposits show – think again. The IRS and the banking industry are on the same team, and in an attempt to deter tax crimes, the IRS requires banks to report all large cash transactions. Additionally, the ... Read More