Did you know that 1 in 75 people get audited by the IRS? That means there’s a very high chance you could be on the receiving end of what can often be an intimidating process. Being audited by the IRS can be scary. Especially if you don’t know that means, or are worried about you were …
7 Reasons Why You Might Be Being Audited by the IRS Read More »
There’s a lot to think about this tax season more than in years past. This is the first time businesses and accountants are working with all of the changes from the Tax Cuts and Jobs Act. The tax changes present the biggest changes to the tax code in the last 30 years, so it’s understandable …
What You Need to Know About the Constructive Receipt of Income Read More »
You’re sifting through a month’s worth of mail, determined to tackle it once and for all when you come across a notice that immediately gives you a knot of anxiety in your stomach. It’s from the IRS. It’s a “notice of tax due,” and your balance is about to be late. Why do you owe money …
How Far Back Can the IRS Audit Your Accounts and Financial Information? Read More »
Less than 1% of individual tax returns are audited. Your chance of being audited is about 1 in 160, so it’s pretty unlikely that you’ll be audited. However, there is always a chance that you could be randomly selected for an audit or a discrepancy on your return could trigger a tax audit. You can never …
Before We Get Started, See How Much You May Know About Taxes & Take The Tax Quiz Below! Compare how long the US Tax Code is in comparison to the Bible at around 1600 pages long, and you’ll understand why people have a lot of questions about the IRS and its tax code. It’s not …
How Far Back Can the IRS Audit? 8 IRS Questions & Answers For 2019 Read More »
How Artificial Intelligence Affects IRS Tax Audits Gone are the days of the stereotypical CPA – visor, glasses, hunched over an adding machine with a stack of documents close at hand. For decades, people have been using computers and increasingly sophisticated programs to aid in tax preparation, risk analysis and auditing. Now, emerging technologies such …
The IRS provides a large amount of advice to taxpayers concerning what certain matters arise. The agency also at the same time sends out notifications to taxpayers concerning a large number of concerns. A notification could concern an audit, or a changed or corrected return. It could indicate a tax deficiency, meaning that you owe …
It is always a good idea to revisit why individuals get audited. Generally, the IRS can audit returns filed in the past three years. The penalties that result from an audit can be severe. It can be as much as 20 percent of the amount of an “erroneous claim.” If the IRS decides a return …
On behalf of Silver Tax Group posted in IRS Tax Audits on Thursday, April 19, 2018. While the number of IRS audits has gone down in recent years, taxpayers still need to take care when filing returns. This is especially true with the passing of the Tax Cuts and Jobs Act. Even tax professionals remain unclear about a number …
On behalf of Silver Tax Group posted in IRS Tax Audits on Wednesday, April 11, 2018. While there have been less IRS tax audits since 2010, there are still a large number of things that can trigger an audit. In 2017, there was still over a million tax audits. An audit does not by itself mean you are guilty …
On behalf of Silver Tax Group posted in IRS Tax Audits on Wednesday, April 4, 2018. While the IRS conducted fewer audits in 2017 than in the prior year, this does not mean that the numbers of audits are insignificant. During the year, there were 934,000 audits throughout the United States. The IRS continually conducts its business. During 2017, …
On behalf of Silver Tax Group posted in IRS Tax Audits on Thursday, March 8, 2018. Due to possible underreporting of income, the IRS is taking a close look at bitcoin transactions. This is in part because Bitcoin values increased over 20 times in 2017. Also, many bitcoin transactions take place outside of the public light. While such IRS crackdowns are …
On behalf of Silver Tax Group posted in IRS Tax Audits on Monday, March 5, 2018. It’s worth repeating that many things can trigger an IRS audit. Obviously, inaccuracies on forms, claims for deductions which you do not qualify, or the failure to report certain income will result in problems. But it would be difficult to list every type …
On behalf of Silver Tax Group posted in IRS Tax Audits on Tuesday, February 20, 2018. For close to 17 years, the IRS has had a program in place allowing for penalty abatements. These abatements are available for individuals with a history of complying with reporting requirements. The policy behind the first-time penalty abatement program (FTA) was to give …
On behalf of Silver Tax Group posted in IRS Tax Audits on Monday, February 12, 2018. Michigan taxpayers can request an appeal when there are disagreements regarding the result of an audit. The appeal involves filing a written protest. Generally, you will only have 30 days to appeal the determination once receiving a letter from the IRS. The IRS …
Does the IRS target immigrant business owners for audits? The answer should be no, but for foreigners and green card holders there could be more intense scrutiny. While common in states such as Texas and California where many business owners are immigrants, it can also occur in Michigan where an immigrant owns a gas station. …
Does the IRS Target Immigrant Business Owners for Audits? Read More »
On behalf of Silver Tax Group posted in IRS Tax Audits on Thursday, January 18, 2018. It is the season to collect tax documents. Payroll tax problems that may have been too small to catch on a pay period basis may show up as you review your W-2. You place a lot of trust in an employer to withhold …
When a Startup’s Shoddy Accounting Causes W-2 Problems Read More »
On behalf of Silver Tax Group posted in IRS Tax Audits on Tuesday, December 26, 2017. While the new tax bill just signed by President Trump promises to cut individual income tax rates, the bill does not mean filing taxes will be any easier for Michigan taxpayers. The tax bill is complex. As it is currently set up, the …
On behalf of Silver Tax Group posted in IRS Tax Audits on Friday, December 1, 2017. Cryptocurrency or digital currency is a relatively recent creation. Bitcoin is probably the most familiar type of cryptocurrency. In any case, reporting of cryptocurrency gains continues to be a tax issue. IRS can investigate cryptocurrency gains While one particular company, Coinbase Inc., is challenging …
On behalf of Silver Tax Group posted in IRS Tax Audits on Monday, November 27, 2017. Most Michigan taxpayers understand that the federal tax code is extremely complex. There are a whole host of interpretations regarding various provisions. And there are myths concerning filing of taxes that, when believed, can lead taxpayers into trouble with tax authorities. Tax myths …
On behalf of Silver Tax Group posted in IRS Tax Audits on Thursday, November 16, 2017. Those who have taken the plunge into being their own boss may feel a strong sense of independence. Self-employment means choosing your own tasks, clients, hours and other options that can make work more fulfilling. However, there are also a few challenges posed …
On behalf of Silver Tax Group posted in IRS Tax Audits on Wednesday, October 11, 2017. Reasons for tax audits There are already lots of reasons why the IRS audits returns of taxpayers. This can include irregularities in accounting, willful and even non-willful mistakes, failure to submit proper forms, and questionable deductions. There is also another reason for tax …
On behalf of Silver Tax Group posted in IRS Tax Audits on Thursday, October 5, 2017. There’s a lot of tax advice that is best for Michigan residents not to follow. This is understandable because very few people can understand the intricacies of the tax code. What is more disturbing is when the faulty tax advice comes from the …
On behalf of Silver Tax Group posted in IRS Tax Audits on Thursday, September 21, 2017. As digital currency is not the same as real currency, taxing of digital currency transactions is complex. Since digital currency can go up and down in value, exchanges and sales of digital currency trigger capital gains tax treatment. Because the price of digital currency has …
Congress Introduces New Bill Regarding Digital Currency Read More »
On behalf of Silver Tax Group posted in IRS Tax Audits on Thursday, September 14, 2017. There have been a large number of complaints from farmers and business owners facing unjust IRS prosecution. Such complaints involve the IRS accusing farmers and small business owners of making transactions under $10,000 to avoid the Bank Secrecy Act rules. Congressional bill In …
On behalf of Silver Tax Group posted in IRS Tax Audits on Monday, August 21, 2017. Seemingly straightforward tax deductions may prove to be not so simple when it comes to tax reporting. For example, as a Michigan resident it is allowable to deduct alimony payments from your taxable income. Yet as easy as this may sound, there are …
On behalf of Silver Tax Group posted in IRS Tax Audits on Monday, August 7, 2017. Anyone understanding the consequences of an audit will also understand why taxpayers will want to avoid it. The results of an IRS audit can lead to significant penalties including fines and possible prison time. Under the best of circumstances, the whole audit process …
On behalf of Silver Tax Group posted in IRS Tax Audits on Thursday, July 27, 2017. We have said before on this blog that is important to be aware of the deductions available to you. Despite the fact that the IRS is an intimidating presence, Michigan residents still have the legal right to take a large number of deductions …
The IRS has significant power to seize assets due to the ability to implement a lien or levy when back taxes remain unpaid. And the property that the IRS seizes can include account receivables for your business, bank accounts, wages, tax refund and even your vehicle. Lien and levy There is a difference between a lien …
Possible Actions to Take When Subjected to a Tax Lien or Levy Read More »
On behalf of Silver Tax Group posted in IRS Tax Audits on Monday, June 12, 2017. Simply because you receive a tax refund check does not guarantee you are safe from any audit. The IRS reserves the right to audit the majority of returns for up to three years. The IRS often sends a tax refund before approving the …
When it comes to IRS audits, gas stations owners are often at a disadvantage. Not only is a great deal of their business transacted in cash — making it more difficult to accurately track — but with few employees, owners often don’t have the resources or time to maintain perfect financial records. Even when records …
4 Things The IRS Will Examine Closely During a Gas Station Audit Read More »
On behalf of Silver Tax Group posted in IRS Tax Audits on Thursday, June 8, 2017. As a small business owner, there are few things as frightening as receiving an IRS audit notice. Even the most confident and meticulous book-keepers can instantly be filled with fear and doubt as they imagine the IRS pouring over their financial records looking…
On behalf of Silver Tax Group posted in IRS Tax Audits on Thursday, May 18, 2017. The IRS is always looking for ways to collect more revenue. One method is to target micro-captive transactions. A micro-captive transaction is one where a taxpayer attempts to reduce their taxable income through the use of insurance contracts. Micro-captive transactions Under micro-captive transactions, …
On behalf of Silver Tax Group posted in IRS Tax Audits on Tuesday, April 4, 2017. There is understandable concern regarding how far back the IRS can look when auditing tax returns. While generally the IRS can look back three years after a filing during an audit, there are many exceptions to this rule. The statutes of limitations The three-year …
On behalf of Silver Tax Group posted in Tax Crimes on Monday, April 3, 2017. Why audits happen? We are in the thick of tax season and everyone is scrambling to get their paperwork done. Some individuals may have started at the beginning of the year while others wait until the last minute to do their paperwork. Whichever way …
On behalf of Silver Tax Group posted in IRS Tax Audits on Thursday, March 23, 2017. It is important to remember that cancellation of a debt does not mean that your financial worries will come to an end. Any Michigan taxpayer who has part or all of their debt cancelled may nevertheless need to report this amount as income. …
On behalf of Silver Tax Group posted in IRS Tax Audits on Friday, March 10, 2017. While reporting income on our tax forms is relatively straightforward in most situations, it gets complex in other instances. We use W-2 forms for reporting income from our employer, and a variety of 1099 forms for reporting other forms of income such as …
On behalf of Silver Tax Group posted in IRS Tax Audits on Sunday, February 26, 2017. The IRS audits nearly 1.5 million tax returns every year. But how do they decide which returns should be audited (or “examined” in IRS terminology)? While there are many factors that can trigger an audit, here are some of the most common factors …
On behalf of Silver Tax Group posted in IRS Tax Audits on Saturday, February 11, 2017. The IRS has numerous resources and law enforcement tools available to collect taxes. Every return faces scrutiny, and mistakes on the return can lead to an IRS tax audit. It is important for Michigan taxpayers to remember that audits frequently result in fines, penalties …
On behalf of Silver Tax Group posted in IRS Tax Audits on Tuesday, January 24, 2017. Taxpayers often are subject to tax audits and other agency actions taken by the IRS. The notice of an audit can cause understandable concern. Mistakes and findings of wrongdoing can lead to tax penalties and criminal charges. However, even the IRS recognizes that taxpayers have …
On behalf of Silver Tax Group posted in IRS Tax Audits on Sunday, January 22, 2017. Florida has more IRS offices than all but four other states, and many of these offices are in South Florida. That alone makes it more likely that Florida residents and Florida businesses will be selected for an in-person IRS audit (called field audits) …
The IRS Is Everywhere in Florida, and They WILL Come for You. Read More »
On behalf of Silver Tax Group posted in IRS Tax Audits on Monday, January 9, 2017. While there are advantages in being self-employed, taxes can be more complicated for self-employed individuals than those who work for someone else. Additional tax forms will require filing to meet IRS guidelines. And due to such complications, there is a greater increase of …
On behalf of Silver Tax Group posted in IRS Tax Audits on Saturday, December 31, 2016. In today’s tax world with its complicated rules and reporting requirements, it never hurts to plan ahead. The preparation process can take time, however. More importantly, such preparation requires great care as mistakes can result in harsh tax penalties and asset seizures. As another …
When It Comes to Taxes, It Never Hurts to Plan ahead Read More »
On behalf of Silver Tax Group posted in IRS Tax Audits on Sunday, December 25, 2016. Our prior post on our tax law blog began answering the question about whether some people might face higher odds of going through an IRS tax audit. So far, we listed a couple of QuickBook’s causes for audits: high earnings and possibly rounded numbers. …
On behalf of Silver Tax Group posted in IRS Tax Audits on Tuesday, December 6, 2016. With every new presidential administration, there will be changes to tax policy. While President-elect Donald Trump proposed that tax cuts will take place, it’s still unclear what the tax consequences of any cuts will be. It’s likely that any actual tax cut will reduce the value …
What Will Happen to Deductions under President Trump? Read More »
On behalf of Silver Tax Group posted in IRS Tax Audits on Saturday, December 3, 2016. The recent presidential election presented many interesting issues, some political, some personal and some ridiculous. One of the controversial matters that came up was IRS audits. The media and the public asked, “Why has Trump been audited so many times?” As a past post …
On behalf of Silver Tax Group posted in IRS Tax Audits on Monday, November 28, 2016. The last thing any retiree wants to encounter is a tax audit. Unfortunately, actions taken regarding a retirement account can bring you to the attention of the IRS. This is particularly true for retirees with significant incomes. Retirement and tax audit A Kiplinger report lists ways …
On behalf of Silver Tax Group posted in IRS Tax Audits on Friday, November 18, 2016. Virtual currency and bitcoins are popular subjects on tax blogs. As this involves online transactions, regulations regarding this area are relatively new. It is also a difficult area to regulate because individuals involved in bitcoin transactions are usually anonymous. Finally, the amount of …
On behalf of Silver Tax Group posted in IRS Tax Audits on Friday, November 11, 2016. The Internal Revenue Service recently announced an increase in the estate tax and gift tax exemptions for 2017. Currently the limit is $5.45 million over a person’s lifetime, but the amount of this exemption will go up to $5.49 million in 2017. Married couples will …
An Increase to the Estate Tax Exemption Announced Read More »
On behalf of Silver Tax Group posted in IRS Tax Audits on Monday, October 31, 2016. Even profits made upon the sale of your home could result in tax consequences. Capital gains tax treatment concerns profits made upon the sale of specific assets, and such treatment could involve the sale of your home that you owned for several decades. The …
On behalf of Silver Tax Group posted in IRS Tax Audits on Monday, October 17, 2016. Michigan residents will understandably be concerned regarding possible changes in the manner in which the IRS handles tax appeals. Currently, the IRS provides 35 Appeals team case leaders (ATCLs) settlement authority regarding these cases. However, the IRS may in the future place the resolution …
On behalf of Silver Tax Group posted in IRS Tax Audits on Monday, October 3, 2016. If you are a corporate executive, business owner with significant assets, or just happen to be wealthy, you may face an increased chance of an IRS tax audit. One unit under the Internal Revenue Service’s Large Business and International Division is the Global …
On behalf of Silver Tax Group posted in IRS Tax Audits on Friday, September 16, 2016. The number of fraudulent transfer cases prosecuted by the IRS since the financial meltdown in 2007 has dramatically risen. This is especially true concerning individuals who filed for bankruptcy protection. Forbes.com notes that a recent cases document the power the IRS has in pursuing …
How Far Can the IRS Look Back in Fraudulent Transfer Cases? Read More »
On behalf of Silver Tax Group posted in IRS Tax Audits on Monday, September 12, 2016. For Michigan individuals and businesses, an audit is an intimidating process that most of us would prefer to avoid. The purpose of the IRS in conducting audits is to “ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported …
On behalf of Silver Tax Group posted in IRS Tax Audits on Friday, August 12, 2016. What comes through the mail anymore? Catalogs, offers for new credit cards and other junk seem to form the majority. You may only look forward to collecting the mail during the Christmas season for the cards and family/friend yearly updates. If you have …
How Should You Respond to a Letter From the IRS? Read More »
On behalf of Silver Tax Group posted in IRS Tax Audits on Tuesday, June 7, 2016. A recent report finds entrepreneurs in the sharing economy are not always receiving the forms needed to complete their taxes properly. Misunderstandings are also common when it comes to self employment taxes and tax deductions. More than 2.5 million people work (generally part-time) …
1099s in the Sharing Economy: What Are the Requirements? Read More »
On behalf of Silver Tax Group posted in IRS Tax Audits on Friday, May 27, 2016. Earlier this month, the IRS announced that it was doing some hiring for the first time in more than five years. It will add up to 700 employees to fill key gaps in its enforcement division. The Wall Street Journal reports that even after hiring …
On behalf of Silver Tax Group posted in IRS Tax Audits on Tuesday, May 3, 2016. Reconsideration is, in some ways, an appellate process. You are asking the IRS to “reconsider” their previous determination of your tax liability. Reconsideration is most often filed by people who: Have missed a tax return and were subjected to a substitute form being …
On behalf of Silver Tax Group posted in IRS Tax Audits on Friday, April 22, 2016. You might assume the tax filing deadline means you can stop worrying about taxes for the year. However, a handful of business owners and individuals will face one more hurdle: a dreaded tax audit. While you don’t need to panic, you do need …
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