What can one do to avoid an audit?
- David Greene
- Comments Off on What can one do to avoid an audit?
I often get asked this question just after tax season. There is nothing you can do to guarantee that you will never be audited. However, by following three simple rules, you can minimize your chances of being audited and, if…
How can the IRS deny a taxpayer’s exemption for his child?
- David Greene
- Comments Off on How can the IRS deny a taxpayer’s exemption for his child?
Usually, when the IRS denies your exemption for a child, it means that someone else filed before you did, claiming the same child as an exemption. This usually arises when a stepparent and biological parent both claim the exemption. However, in…
Does using a paid tax preparer guarantee a correct return?
- David Greene
- Comments Off on Does using a paid tax preparer guarantee a correct return?
Unfortunately, the answer is “no.” Many preparers make mistakes from time to time for various reasons on both personal and corporate returns. In fact, the IRS recently released a study that found that 71% of S corporations who used paid…
Mistakes In Tax Return Preparation (Part 2)
- David Greene
- Comments Off on Mistakes In Tax Return Preparation (Part 2)
Recently I stated that I can think of ten mistakes that are most often made when preparing a tax return. In that blog I listed 5 and in this blog I will tell you the remainder. Here they are: (6)…
How many different ways can the IRS try to collect taxes I owe?
- David Greene
- Comments Off on How many different ways can the IRS try to collect taxes I owe?
This is a good question, but one that cannot be answered in a short space. I will just discuss the primary methods. When one does not pay her taxes, she will first receive a friendly letter stating that she has…
How does one dispute payroll taxes assessed by the IRS?
- David Greene
- Comments Off on How does one dispute payroll taxes assessed by the IRS?
There are various ways to dispute the assertion by the IRS that you owe additional payroll taxes. Has the tax actually been assessed or have you simply been notified that you might owe this? Also, if it has been assessed…
What is the likelihood of being audited?
- David Greene
- Comments Off on What is the likelihood of being audited?
This is a difficult question to answer. The IRS computers use several criteria to target returns for audit, including if the current return shows much less income than the past year, an extremely high amount in deductions, or if the…
Is a mistake on a tax return criminal?
- David Greene
- Comments Off on Is a mistake on a tax return criminal?
If you make a mistake on your tax return, that is not criminal. However, filing a wilfully fraudulent return is criminal and can land you in jail. Here are some things you do not want to do that, if done,…
How likely is it for an S-Corporatoin to be audited?
- David Greene
- Comments Off on How likely is it for an S-Corporatoin to be audited?
It is true that an S-corp or partnership is less likely to be audited than a sole proprietorship. However, the IRS is increasing pass-through entity audits as their computers become more powerefu. Also, several years ago the IRS was directed…
A recent question was: How many different ways can the IRS try to collect taxes I owe?
- David Greene
- Comments Off on A recent question was: How many different ways can the IRS try to collect taxes I owe?
First, let me say that I hope all my readers had a wonderful Christmas. Two weeks ago I mentioned several collection methods. This week I will discuss seizure of property in more detail. If the taxpayer still does not pay…