It would be easy to assume the IRS spends most of their time carefully looking over the taxes of highly paid individuals. After all, the more money that exists in accounts and investments, the more complex the assets can become. It makes sense it would be easier for...
Tax Audits
Is blockchain the next tool to fight tax evasion?
Technological advances can increase efficiency. One of the most recent examples is the internet. At first, the public and the government were unsure of how to use the internet. After some time, the internet became an integral part of our daily lives and government...
You’ve been summoned by the IRS, now what?
In general, unless you are expecting a refund check, a letter from the IRS is an anxiety-inducing experience. Occasionally, the IRS sends out an Information Document Request ( IDR), asking for information. While you do not have a legal obligation to comply, if you...
Three steps when IRS questions a deduction
You have likely heard the adage "innocent until proven guilty." Although this holds true in most criminal cases, it does not apply to investigations by the Internal Revenue Service (IRS). How are investigations by the IRS different? Taxpayers generally bear the burden...
Restaurants accused of tax fraud, face state and federal charges
The Department of Justice (DOJ) has accused five restaurants to tax evasion. The charges include claims the restaurant owners made use of software called “tax zappers” to remove revenue from their books. Instead of properly claiming proceeds from their restaurants on...
You have mail: What to do when the IRS asks about a foreign asset
Those who are savvy in their financial planning efforts likely have diversified their investments. For many, this includes the use of financial assets. When done wisely such planning is legal and beneficial. However, a simple misstep could result in a failure to...
Investment strategy leads to allegations of tax fraud
Investing assets is a complicated business. As such, it is not uncommon to hire a financial planner or to seek advice from investment professionals to aid in creation of an investment strategy. In many cases, this can lead to a strategy that minimizes risks while...
Partnership tax audit rules: Is your business ready?
The rules regarding how the Internal Revenue Service (IRS) can conduct tax audits of partnerships have changed. It is important for business owners to review the rules and have a basic understanding of the impact on their business. In some cases, business owners may...
How likely is it that the IRS will audit your tax returns?
The thought of getting a notification that your tax filings are under review by the Internal Revenue Service (IRS) may cause you to break out into a cold sweat. But how common are these reviews? How worried should you be? Overall, the IRS only audits approximately 1...
What can trigger an IRS audit?
The end of tax season brings relief to tax professionals and filers alike, but it can be just the beginning of dread for one million more. According to Accounting Today, the Internal Revenue Service will audit more than one million Americans this year. Many people are...