Archives for Audit

How to Prepare in Case You’re Audited

  The annual tax filing deadline is quickly approaching. So, if you haven’t already, get in touch to book your tax appointment ASAP! Of course, tax season can be a very stressful time. To begin with, nobody likes taxes. Gathering the required documentation and worries over how much you might owe can make you more than a little bit anxious. But those worries are typically assuaged once you’ve met with your CPA, filed your return,
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Tax Payers First Act Brings Welcome Reforms to IRS Appeals Process

Few things induce gut-churning panic faster than notice of an IRS audit. It’s a fear to which no taxpayer is immune. But thankfully, the recent passing of the Taxpayer First Act (TFA) is bringing some solace to taxpayers grappling with an IRS audit. Particularly for those appealing an audit. Internal Revenue Service Independent Office of Appeals To begin with, the TFA establishes the Internal Revenue Service Independent Office of Appeals. This new administrative body is
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Latest Updates on the Tax Increase Prevention Act of 2014

On December 16, 2014, Congress passed what is known as an extenders package including more than 50 of the tax credits that expired at the end of 2013. President Obama has signed the Act on December 19, 2014 and it is effective for the 2014 tax year only. Some of the most prominent tax credits are: state and local sales tax deduction, higher education tuition deduction, and the exclusion for discharge of mortgage debt, business and
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IRS Audits

Anatomy of an IRS Audit As a taxpayer representative and preparer, I’ve recently finished up 3 interesting audit cases with the IRS and would like to share how they went: 1st Case: A client of mine was selected for an IRS audit due to a large partnership loss from a K1 that he invested in.  The IRS is currently auditing partnership losses especially for passive activity limitations.  Only issue is that partnership losses in this case
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IRS on the auditing warpath

See this article on IRS increasing audits of small to medium sized businesses by 30%.  We are seeing this in my practice and in talks with other practioners.  My opinion on this is that the IRS can get easier dollars by targeting small businesses rather than large ones with less resources, even though per dollar-wise, it still makes sense for the IRS to go after the Fortune 1000s.  Of course this is bad news for
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