Posts Tagged ‘audit’

How should one report non-cash contributions?

  • May 19th, 2020
  • David Greene
  • Comments Off on How should one report non-cash contributions?

Keeping proper records to support contributions claimed as a tax deduction can be tricky.  If you claim cash contributions, you must have a receipt from the charitable group to whom you gave the contribution.  Also, the gift must be to…

The PEOPLE FIRST INITIATIVE from the IRS

  • April 3rd, 2020
  • David Greene
  • Comments Off on The PEOPLE FIRST INITIATIVE from the IRS

In conjunction with the CARES Act and other directives from the President, the IRS has begun a new initiative called the People First Initiative.  The highlights are as follows: If you are in an existing Installment Agreement, payments due between…

Which people get in tax trouble the most?

  • March 12th, 2020
  • David Greene
  • Comments Off on Which people get in tax trouble the most?

I can’t say that there is any one group that tends to get in trouble more than any other, but there is one type of taxpayer who tends to get in trouble frequently.  Self employed people tend to find themselves…

Can I use my unreimbursed employee mileage expense as a deduction in 2020?

  • February 4th, 2020
  • David Greene
  • Comments Off on Can I use my unreimbursed employee mileage expense as a deduction in 2020?

Unfortunately, you can no longer use mileage on the job as an unreimbursed business expense when you itemize deductions.  In my practice I have found that, most of the time, those expenses were disallowed in an audit because the taxpayer…

When is a theft or bad debt loss not deductible?

  • January 2nd, 2020
  • David Greene
  • Comments Off on When is a theft or bad debt loss not deductible?

You can claim a theft loss as a deduction only if there is no chance of recovering any of the amount stolen.  Here the IRS is probably lookiong at the possibility that the owner will have to pay restitution as…

Can an employee still deduct unreimbursed business expenses?

  • December 9th, 2019
  • David Greene
  • Comments Off on Can an employee still deduct unreimbursed business expenses?

Since the new tax law came into effect, employee itemized deductions for unreimbursed business expenses, including mileage, have been suspended.  However, self-employed individuals and certain employees (e.g. armed-forces reservists, certain state or local government officials, educators and performing artists) may…

What is a P&L?

  • November 5th, 2019
  • David Greene
  • Comments Off on What is a P&L?

A P&L, or Profit and Loss statement, is simply a listing of all your business income and all of your business expenses for a given period of time.  It is sometimes called an Income and Expense statement.  Generally, you first…

What are the current rules about meal and entertainment deductions?

  • October 22nd, 2019
  • David Greene
  • Comments Off on What are the current rules about meal and entertainment deductions?

The new tax law (TCJA) has made several changes in the deductibility of business meals and entertainment.  Last week I addressed deductions for meals. This week I will discuss the deductibility of entertainment expenses.  Even before the new tax law,…

How to generate proof of expenses in an audit.

  • October 2nd, 2019
  • David Greene
  • Comments Off on How to generate proof of expenses in an audit.

As you know the IRS will not accept your word for expenses.  They want to see backup documents and proof of payment.  If you did not keep receipts, you can order old bank statements from your bank and then go…

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