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Posts tagged "Audit"

Small business and tax audits, part 1: IRS shifts priorities

The tax compliance challenges faced by small business owners are one of the important threads in this blog. A few months ago, for example, we devoted a two-part post to issues involving income reporting by small businesses. 

The shutdown: audits suspended, but not criminal investigations

Last week we wrote about the changed tax-compliance climate for offshore accounts. This week, with the partial shutdown of the federal government, we find ourselves exploring a different type of change: the effect of the shutdown on IRS activities.

IRS looking at income under-reporting by small businesses

The concerns of small business owners are a frequent focus of this blog. That focus is with good reason. Businesses with fewer than 50 employees face a host of tax issues that affect their operation, from payroll and sales tax compliance to their employees' health insurance options.

Revisiting the question of audit criteria: IRS reviews process

Prudent taxpayers naturally want to minimize their chances of an IRS tax audit. That is why, in March of this year, we devoted a three-part series of posts to some of the leading red flags that an audit may occur. This series covered such items as unusual tax deductions and failure to report miscellaneous income. It is also generally known that the chances of being audited rise with income.

IRS audit thyself: lack of documentation, doubtful expenses

The tables have been turned at the IRS. The agency responsible for scrutinizing taxpayers' compliance with the tax code has itself come in for sharp scrutiny. This week came the news that an audit of the agency responsible for federal tax audits has found some highly questionable spending.

Tax audit warning flags, part 1: vindictive former spouse

No one knows exactly what Google's famous algorithm is. Nor does anyone outside the IRS know exactly what triggers a tax audit. But based on experience, it is possible to make certain educated assumptions about what the warning flags for IRS audits are.

Payroll taxes and worker classification: IRS in auditing mode

Small businesses are often lauded by politicians of all types for their role in role in driving the economy and creating jobs. But small employers face many practical challenges in trying to make their businesses work. Some of those are tax challenges.

California taxpayers should know about tax fraud monitoring

The Internal Revenue Service is constantly trying to detect tax fraud and ensure compliance with the nation's tax laws. But according to one government agency, it is not doing a good enough job. In a report released last month by the Treasury Inspector General for Tax Administration, that agency recommended that the IRS take additional steps to detect tax fraud during field audits and thereby capture additional tax revenue.