The Hidden Cost of an Audit

On behalf of Frost Law posted in on January 31, 2019.

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. In addition to these common triggers, the agency has also put technology to use with its new CP200 program. […]

Tags: Blog, Audits, IRS

What Happens When the IRS Audits a Tax Return?

On behalf of Frost Law posted in on August 1, 2018.

Think the IRS is about to conduct an audit of your tax returns? The following basic questions and answers can help you get through the process with minimal stress. What is the purpose of an audit? The Internal Revenue Service (IRS) conducts an audit when there is a tax discrepancy. The agency’s decision to review […]

Tags: Blog, Audits, IRS

How to Survive an Audit From the IRS

On behalf of Frost Law posted in on May 10, 2017.

A tax audit is essentially an accounting procedure that examines your financial records to ensure you filed your tax return accurately. If the IRS finds errors or purposeful mis-reportings, you’ll have to pay the recalculated return amount and any interest. The IRS can choose to audit your tax return for a number of reasons, including: […]

Tags: Blog, Audits, IRS

3 FAQs on Red Flags for Tax Audits

On behalf of Frost Law posted in on February 11, 2017.

Even if you do everything right, there’s no guarantee your tax return won’t be audited. After all, the IRS does choose some returns at random for auditing. There are, however, certain red flags that can increase your risk of an audit. What are the most common red flags? One is taking overly large tax deductions. […]

Tags: Blog, Audits, IRS

3 Reasons to be Wary of a Tax Audit

On behalf of Frost Law posted in on November 11, 2016.

A tax audit is hardly a deal breaker for moving forward with life. After all, an audit doesn’t necessarily mean you owe more tax or did anything wrong. And of course a celebrity businessman who has famously been under near-constant audit for the last two decades has just been elected president of the United States. […]

Tags: Blog, Audits, IRS

Form 1099-K: Can The Reporting Requirements Trigger a Tax Audit?

On behalf of Frost Law posted in on June 29, 2016.

A few years ago, Congress got the idea that businesses could be more accurate in reporting all of their income. The concern was that there was a significant gap between taxable income and income reported on tax returns. To respond to this concern, Congress added a provision to the tax code to require credit-card companies […]

Tags: Blog, Audits, IRS

When One’s Business is Being Audited

On behalf of Frost Law posted in on June 15, 2016.

Running a business can have stressful aspects under any circumstances. Certain things though can add to the stress a business owner experiences. One is finding out from the Internal Revenue Service that their business is going to be audited. Business audits by the Internal Revenue Service can be looking at all different kinds of things […]

Tags: Blog, Audits, IRS

Audits, Underreported Income, and the IRS’s Automated Toolkit

On behalf of Frost Law posted in on April 8, 2016.

It’s common knowledge now that the overall number of tax audits is down due to IRS budget cuts. We noted that fact last month, in our March 22 post on business tax audits. Audits of individuals are down as well, as the IRS deals with the budget cuts it has experienced in recent years. Tax […]

Tags: Blog, Audits

What is an ‘Eggshell Audit’? and Who Should Handle It?

On behalf of Frost Law posted in on March 4, 2016.

The answer is no, because you are faced with a sensitive situation that is colloquially known as an “eggshell audit.” In this post, we will explain what that is and who should handle it. Eggshell audit is not a formal term. But it is commonly used to describe a situation in which a taxpayer is […]

Tags: Blog, Audits