Penalty relief? IRS won't offer it
Thursday, October 18th, 2012
IRS penalty relief worth $181 million was available to 1.45 million taxpayers who were not told by the IRS and did not receive the relief. A new report from the IRS watchdog Treasury Inspector General for Tax Administration recommends changes to penalty abatement procedures to encourage taxpayers to file and pay taxes. The Tax Code […]
Read More »Effective audit representation saves money
Thursday, March 15th, 2012
The local IRS office has stepped up its audits on individuals and businesses. More and more people are coming to us for effective audit representation. Several of them had suffered costly outcomes after their initial meetings with auditors, and they came to us for help. We were able to improve upon their original assessment through […]
Read More »Worker classification crackdown coming
Wednesday, October 26th, 2011
The IRS recently announced a voluntary worker classification program that provides amnesty from back payroll taxes and penalties for companies who reclassify their independent contractors into employees. While there may be advantages on the federal tax side of this issue, you must consider other factors before deciding on a course of action. Worker classification has […]
Read More »Standard mileage rates change
Friday, July 1st, 2011
The IRS has adjusted the standard mileage rates beginning July 1, 2011, in response to higher gasoline prices. The new standard mileage rates will apply through the end of 2011. Mileage Rate Changes Purpose Rates 1/1 through 6/30/11 Rates 7/1 through 12/31/11 Business 51 55.5 Medical/Moving 19 23.5 Charitable 14 14 You have the option […]
Read More »IRS abates penalties
Monday, April 4th, 2011
In a payroll tax case we have been working on for over a year, the IRS has agreed to abate penalties, saving the taxpayer over $200,000. This is a very unusual decision for the IRS, which considers non-payment of payroll taxes to be an unauthorized loan of government funds. Employers are required to withhold income […]
Read More »Next IRS target – generous relatives
Wednesday, March 30th, 2011
Generous relatives may be the next targets of IRS hunting expeditions. The IRS has asked a federal judge for a “John Doe” summons on the California Board of Equalization to force the board to turn over records of property transfers for little or no consideration. They are looking for people who have not paid gift […]
Read More »Bad tax preparer leads to audit trouble
Thursday, March 24th, 2011
We recently met with a new client who had been invited to the IRS local office for an examination of two years of her tax returns. She called the tax preparer, who told her she would not need the preparer at the meeting (red flag number one). After the meeting, she called the preparer back […]
Read More »IRS wants your QuickBooks file
Tuesday, December 14th, 2010
The IRS recently announced that tax examiners across the nation are now trained in QuickBooks, and they are requesting taxpayers’ company files to conduct tax audits. Should you willingly hand over your company’s QuickBooks to an examiner? We think that’s an invitation to trouble. If your company has been using QuickBooks for bookkeeping since it […]
Read More »Payroll Tax Audits Target Businesses
Friday, September 3rd, 2010
Earlier this year, the IRS began its program of auditing businesses for compliance with payroll tax reporting and payment. As part of its National Research Program to gather statistics about payroll tax compliance, the IRS is examining 6,000 businesses large and small, 2,000 each year starting earlier this year. This study is part of their push to step […]
Read More »IRS gives some solace in a sad story
Friday, June 18th, 2010
About five years ago, a police officer and his wife decided to use their retirement money to build their dream home in the Smokies. They bought a pretty lot and a log home kit, and contracted with a local builder to erect it. From the beginning, the construction process went terribly wrong. Errors compounded so much that they stopped […]
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