The overall number of tax audits continued to decrease with about one million individual returns flagged last year, which equates to less than one percent of all those filed. This number was 16 percent lower than the prior fiscal year.
Penalties for underpayment of taxes or the disallowance of business expenses can quickly tip your personal or business balance sheet into the red. When does it make sense to challenge the IRS?
In our last post we discussed tax evasion arguments that could subject people to significant tax penalties and other consequences. We now continue with a few more.
Come mid-April, every California taxpayer wants to pay as little tax as possible. This is the legitimate goal of detailed tax planning, and those who know their Internal Revenue Code can benefit significantly. It is important to note, however, that there are legal ways to minimize one's taxes and there are other ways, which, if attempted, could subject a person to substantial financial penalties and other consequences.