The end of the year is approaching, which means tax season is also on the horizon. As taxpayers make end-of-year tax preparations, they may find themselves questioning the audit process. What leads to an audit? Why do some tax filings move forward without question,...
Three lessons from a tax audit gone wrong
It all began when the Internal Revenue Service (IRS) notified a relatively small, local business that it would be subject to a federal tax audit. The business cooperated, and the auditor returned findings of serious tax errors. Errors that could result in substantial...
Has the new tax law impacted NY real estate deals?
New Yorkers have voiced concern the new tax law would have a negative effect on real estate transactions within the state. More specifically, a provision within the Tax Cuts and Jobs Act (TCJA) capped the amount of state and local taxes taxpayers could deduct on their...
CT residents sue NY for double taxation
New York state tax auditors are coming down hard on those who may owe state taxes, even if they reside in another state. Why? In part, because changes to federal tax law have tempted NY residents to leave the state, at least for tax purposes. The Tax Cuts and Jobs Act...
Changes to tax law will impact use of third-parties
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...
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...
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....
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...
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...