The Internal Revenue Service (IRS) will have to change the notification process used to inform taxpayers that it intends to reach out to a third-party. The contact may be used to ask questions to help the IRS determine the taxpayer’s tax obligations. Tax law generally...
Tax Audits
IRS warns taxpayers of latest scam
The Internal Revenue Service (IRS) recently warned taxpayers they might receive a letter in their mailbox that looks like an official document from the federal agency. The correspondence is the latest work of scam artists trying to steal your money. The group behind...
To report or not to report: Why is virtual currency so difficult?
Governments are struggling with how to manage virtual currency. The Internal Revenue Service (IRS) and Department of Treasury continue to struggle to find the right way to handle this asset and have taken different stances. Digital currency has similarities to other...
New tax law will likely mean more state tax audits
The Tax Cuts and Jobs Act (TCJA) has led to many changes in tax law. We are just starting to experience the full impact of these changes, as many of the new provisions went into effect for the recent tax filing for the 2018 tax year. One specific impact tax experts...
Good records can be your best weapon if audited
The Internal Revenue Service (IRS) or the New York Department of Taxation and Finance may send business owners a letter requesting additional information to support tax returns. When this happens, an organized set of records can help to better ensure the process goes...
What can you say to the IRS or NY Department of Taxation?
Filing tax returns is difficult and often stressful. Arguably, the only thing even more stressful is getting contacted by the Internal Revenue Service (IRS) or New York Department of Taxation and Finance with questions about your return. How will these agencies...
Will NY’s increased sales tax receipts impact audit rates?
Individuals, businesses and even state governments felt the impact of the recession in recent years. States throughout the country, including New York, reported weak gains in tax revenue growth for the last two years. State government finally appear to be rebounding....
What are the chances of a repeat NY tax audit?
A business or individual will likely experience frustration after receiving a notification from the New York State Department of Taxation and Finance of an impending state tax audit. One thing that can top this frustration: notification of a second audit. How often...
Could you be selected for sales and use tax audit in New York?
Although businesses of any size can find themselves the subject of a sales and use tax audit, some are at a higher risk than others. Common targets often include large businesses or those with complicated tax filings. Understanding audit risk factors can help...
Business owners: 3 tips to help during a sales tax audit
Business owners subjected to a sales tax audit can take proactive steps to ease the process. Some tips that apply to most in this situation include: Cooperate. A recent publication in the CPA Practice Advisor notes a top mistake made during a sales tax audit is giving...