Audit of the Offshore Voluntary Disclosure Program
The Treasury Inspector General for Tax Administration (“TIGTA”) completed an audit of the Offshore Voluntary Disclosure Program (“OVDP”). US citizens are taxed on their worldwide income and must report bank accounts when their aggregate balance exceeds $10,000. The OVDP and other similar programs allow taxpayers a mechanism to come forward and get into compliance with […]
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Auditing and You: What Every Taxpayer Needs to Know
From a tax perspective, an audit is one of the most challenging situations a taxpayer may confront. Whether you’re facing an audit now, or you’re simply concerned about the possibility of an audit, there are several things you need to know. Each year, the process of filing taxes fills many Americans with dread and frustration. […]
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Getting Ready to File your Taxes? Avoid These Audit Triggers.
Tax season is upon us. The Internal Revenue Service (IRS) began accepting tax returns on Monday, January 27. Those putting the finishing touches on their returns may wonder what the IRS looks for when reviewing returns — what exactly triggers an audit? 1) A large income. Unfortunately, the IRS is more likely to conduct an […]
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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. Thankfully, there are some proactive steps you can take to reduce the risk of a small […]
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New Report Delves into IRS and Audit Trends: 3 Things to Know
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. Three of the more important takeaways from the report include: The IRS will likely […]
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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 […]
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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. How would the new tax law lead to increased state tax audits? The Tax Cuts and Jobs Act […]
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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. Why do I need to have withholdings? The United States tax system is one that requires incremental […]
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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. How is the IRS’ limited? In most cases, a statute of limitations, or time limit, applies. This means the agency has a set amount of time it can look back into your tax […]
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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 […]
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