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.
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. Recent data shows this year is off to a much better start. Tax collections for Q2 in New York were reportedly up 18.2 percent.
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.
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:
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 operations.
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).
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 tax returns, the government claims the owners removed cash from registers and used the funds to pay employees under the table.
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 report the assets to the proper authorities.
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 maximizing benefits. In some, it can lead to financial catastrophe.
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 be wise to take proactive steps to better ensure their business’ interests are protected.