One of the leading resources for public accountants, Accounting Today, recently released a report analyzing some of the top trends when it comes to tax audits. According to the report, the Internal Revenue Service (IRS) conducted 991,168 tax audits in 2018.
New report delves into IRS and audit trends: 3 things to know
Small business and tax audits: 4 tips to reduce your risk
Running a small business is not an easy task. Business owners have full schedules-schedules that rarely include much downtime. Getting notification of a tax audit to add to the daily to-do-list can make an already full schedule seem unmanageable.
High net worth individuals flee high tax states
A billionaire recently told his New York staff that he was closing shop and relocating to Florida. Although warmer winters may have played a role in the decision, the move was more likely motivated by an attempt to reduce the entrepreneur’s tax obligations.
Pay estimated taxes? 3rd quarter payment due on Monday.
The Internal Revenue Service (IRS) recently released a publication reminding taxpayers the third quarter estimated tax payment for 2019 taxes is due soon. Normally, the tax payment is due on September 15th. However, since September 15th falls on a Sunday this year, the agency expects taxpayers to make their payment by Monday, September 16th.
3 tax questions to ask before claiming a hobby as a business
What happens if a hobby becomes more than a hobby? Maybe a brewing hobby has led to a passion and some great brews that you want to branch out and pursue brewing as a full-time career. Maybe a farming hobby brought in more of a profit than you expected and you want to shift more resources into making it your life’s work. Or perhaps you have chosen to increase a pastime spent woodworking into your profession.
One reason tax audits by state agencies will likely go up in 2019
As tax filing season ends, taxpayers throughout the country begin to realize the reality of tax audits. Tax experts predict tax audits by state agencies to go up this year. The main reason: the new tax law.
Getting a summer job? IRS recommends a “paycheck checkup”
The Internal Revenue Service (IRS) recently published a newsletter encouraging workers with more than one job to conduct a paycheck checkup. The checkup involves reviewing withholdings to ensure that the taxpayer is paying enough to cover tax obligations.
Tax audits: How long do you need to worry?
The Internal Revenue Service (IRS) can review taxpayers’ returns. But, like most things in the legal world, this ability is generally limited.
These red flags can result in a tax audit
It may be tempting to attempt to reduce your tax burden by rounding some numbers up and rounding some numbers down when filing your tax returns. However, getting too loose with your numbers in your return can increase the risk of an audit. Common red flags that tend to increase the risk of an audit by the Internal Revenue Service (IRS) or local state agency include:
The hidden cost of an audit
Taxpayers may be aware of some of the common triggers that lead to an audit by the Internal Revenue Service (IRS). These can include a large amount of wealth, having foreign assets and small business ownership.
