Audits

Can an Overlooked Tax Form Result in IRS Audit Correspondence?

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

Think tax forms are confusing? You’re not alone. A recent article highlights several commonly encountered areas of frustration. Unfortunately, some common mistakes might also trigger the IRS’ attention. For example, a health savings account is set up with tax savings in mind, including tax-free withdrawals for specified or authorized medical expenses. However, it involves two […]

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Does Tax Return Software Protect You from an Audit?

On behalf of Frost Law posted in on January 25, 2016.

Based on a recent press release from the Internal Revenue Service, tax return software seems to be the wave of the future. Specifically, the IRS announced the launch of a program called Free File, which will allow taxpayers with an adjusted gross income of $62,000 or less to use the software for free. The software […]

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IRS’s Substantiation Proposal Not Welcomed by Charities

On behalf of Frost Law posted in on December 14, 2015.

Non-profit organizations are supposed to have fewer procedural hassles and controversies with the Internal Revenue Service by virtue of their federal tax-exempt status, right? Not necessarily, according to a recent article. Specifically, the article discussed new substantiation rules proposed by the IRS that would require charitable entities to collect and store their donors’ social security […]

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Does E-filing Reduce the Risk of an Audit?

On behalf of Frost Law posted in on October 9, 2015.

Some tax preparation and e-filing providers may market their product as a potential safeguard against IRS audits. For example, TurboTax includes a page on its website devoted to the top five ways to avoid a tax audit, one of which is ensuring accurate figures with the help of a program like TurboTax. Such promotional materials […]

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Is Online IRS Advice a Trustworthy Strategy for Avoiding Audits?

On behalf of Frost Law posted in on August 5, 2015.

In a recent post, we’ve discussed some concerns with the IRS’ treatment of taxpayer questions, including the difficulty in reaching an IRS employee through their hotline. For individuals attempting a proactive approach to their tax questions, there may be another route. Specifically, the IRS offers an email service where it provides tax tips at regular […]

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Didn’t Have Your Trilobites in a Row? That’s When the Audit Comes

On behalf of Frost Law posted in on July 6, 2015.

A few years ago, a veterinarian and fossil enthusiast decided to donate some of his prized collection of trilobites to the California Academy of Sciences. They were apparently worth quite a bit of money — he valued the four he donated in 2006 at $136,500, and eight more, which he gave the group in 2007, […]

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What Role do Organized Tax Records Play in Audit Prevention?

On behalf of Frost Law posted in on June 16, 2015.

When it comes to the Internal Revenue Service, is no news the same as good news? If the topic is audits, the answer might possibly be yes. Now that another April 15 has come and gone, many individuals may be releasing a sigh of relief from hearing no news from the IRS. For business owners […]

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What Deductions does the IRS Consider Automatically Suspicious?

On behalf of Frost Law posted in on January 2, 2015.

It is 2015, which means that the deadline to file your federal income tax return in about three and a half months away. Some people may plan on filing soon, to get it out of the way early. Nobody should pay more in taxes than they actually owe. One way to reduce your tax bill […]

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How Does the IRS Decide Which Taxpayers to Audit?

On behalf of Frost Law posted in on October 10, 2014.

An IRS audit can seem like it came out of the blue. “Why me?” is a common question for individuals and businesses facing federal scrutiny into their income tax returns. The IRS has several ways of selecting the tax returns it chooses to audit. These include: Computer scoring.Returns get screened by computer software called the […]

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Tips for Surviving an IRS Audit

On behalf of Frost Law posted in on September 17, 2014.

You get the notice that no taxpayer wants to see: you are being audited by the IRS. This would be distressing news for anybody. It is understandable if the word “audit” conjures up visions of a long, complicated process with an expensive tax bill at the end. Maybe this happened because of a misunderstanding or […]

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