Blog Archives

Tax Audit Musings

If you chose to represent yourself in an IRS Examination realize the IRS Revenue Agent (RA) or Tax Compliance Officer (TCO) assigned your file is trained very thoroughly to advocate on behalf of the US Government. One method used quite often

Tagged with: , , , , , , , , , ,
Posted in Appeals & Audit Resolution, Audit Reconsideration, Audit Technique Guide, IRS Appeal, IRS Audit, IRS Collections, IRS Criminal Enforcement, IRS Enforcement, IRS Examination, IRS Levy, IRS Lien, IRS Mediation, IRS Penalties, IRS Penalty and Interest Abatement, Uncategorized

IRS Examination Techniques for Cash based business

Since many businesses in industry are cash oriented, have weak internal controls, lack an audit trail, and have inadequate books and records, the examiner’s audit should focus on probing for unreported income.  It is the responsibility of the business owner

Tagged with: ,
Posted in IRS Appeal, IRS Audit, IRS Collections, IRS Examination, IRS Penalties

IRS Appeals Exam Issues

See Revenue procedure 2009-44 as well as Internal Revenue Manual 35.5.5 for more information. There are two basic types of cases considered by IRS appeals officers. They are non-docketed cases and docketed cases. In non-docketed cases typically, exam conducts an audit of

Tagged with: , ,
Posted in IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination

What to do IF you do not agree with an IRS Examiner

If you do not agree with the proposed changes of your assigned examiner, you tell this to the examiner by saying or writing  'I do not agree with your changes.'.  The first thing the examiner must do is explain to

Tagged with: ,
Posted in IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Levy, IRS Lien, IRS Mediation, IRS Penalties, IRS Penalty and Interest Abatement

IRS Examination Selection Criteria

Your tax return may be examined for any one of a number of reasons, and the exam can take place in any one of a variety of ways, in a variety of locations, and quite frankly without you even knowing

Tagged with: , ,
Posted in IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Levy, IRS Lien, IRS Mediation, IRS Penalties, IRS Penalty and Interest Abatement

Audit Reconsideration Request

'Audit reconsideration' requests the IRS to reconsider action it has taken with the taxpayer by allowing the taxpayer to present information that may not have been available to the IRS previously. This procedure is used when an assessment has been

Tagged with: , ,
Posted in Audit Reconsideration, Audit Technique Guide, IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Levy, IRS Lien, IRS Mediation, IRS Penalties, IRS Penalty and Interest Abatement, Tax Problems & Requests, Tax Relief

IRS Audit Red Flags

The IRS has a computer program that targets certain tax returns for closer examination. It’s called Discriminant Inventory Function System (DIF) and it means that some deductions and credits are more likely to attract the government’s attention than others. Some

Tagged with:
Posted in Appeals & Audit Resolution, IRS Audit, IRS Enforcement, IRS Examination, IRS Mediation, IRS Penalties, IRS Penalty and Interest Abatement

Tips for small business on avoiding IRS audit

1. Use accounting software to keep books on a daily basis and input all financial transactions into this software. The client should use one database for their business and one for personal financial data to ensure that 100 percent of

Tagged with: ,
Posted in Appeals & Audit Resolution, IRS Audit

Reduce the chance of getting audited

Except for tax protestors, no one wants to fight with the Internal Revenue Service. That's why there's such a mystique about avoiding an audit. While what-triggers-an-audit theories abound, there are some basic things you can do to reduce your chances

Tagged with: , ,
Posted in Appeals & Audit Resolution, IRS Audit
Subscribe via Email

Follow me on Twitter
QuickBooks Advanced Certified ProAdvisors Online

QuickBooks Certified ProAdvisor - QuickBooks Online Advanced Certification

Xero Certified Adviser