TaxAudit Blog

Tag: irs

Audit Compass

IRS Letter 525 is sent to let you know that your tax return was reviewed. A wise taxpayer should proceed with caution, yet swiftly, from this point forward.

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Father holding tax refund check with his two girls

A CP08 is to let taxpayers know that they may qualify for the Additional Child Tax Credit and, in turn, could be eligible to receive a refund.

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File Cabinet with Documents

IRS notice CP05A is sent by the IRS to inform taxpayers that they need more information about the submitted income tax return before a tax refund can be issued.

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Father and son baking cookies

You received an IRS CP87A because someone else filed a tax return and claimed the same dependent or qualifying child that you claimed on your tax return.

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Man worried about money

Per the collection statute expiration date, the IRS generally has 10 years from the date they assess your tax balance to collect taxes owed.

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Tax Penalty

If you can show that there was “reasonable” cause for the understatement or for failure to file or pay on time, you may be able to get those penalties abated.

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Levy written on a calculator

Receiving notice of an IRS levy can cause a lot of anxiety. How you can prevent an IRS levy from occurring or release a levy once it has occurred?

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Internal Revenue Service Sign

If you’ve received an IRS deficiency or IRS determination and disagree with the changes, how can you dispute them? Read on because we’re here to help!

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Notepad with IRS written on it

The IRS assessment period is at least six years if enough income was omitted. If the the omission of income was deliberate, the IRS has all the time they want.

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1040 Tax Return

IRS Notice CP21A is a letter that the IRS issues when changes have been made to a tax return by the taxpayer, usually after they have filed an amended return.

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File Tax Return! written on a sticky-note

A CP518 notice is issued by the IRS to taxpayers because they have no record of a tax return being filed for the year listed on the notice.

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Writing Check

If you received an IRS notice CP521, it is because you entered into an installment agreement with the IRS for taxes owed and your monthly payment is now due.

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Woman opening a letter

An IRS Notice CP45 is a letter the IRS sends to notify you that your request to apply your overpayment to your next year’s estimated taxes cannot be granted.

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Woman Reading Letter

IRS Letter 105C notifies you that the IRS did not allow the credit or refund you claimed. Usually, Letter 105C will explain why your claim was disallowed.

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Handcuffs laying on a 1040 form

IRS Notice CP10 is issued when the IRS believes there was a miscalculation on your tax return. This results in changes that affect your estimated tax payments.

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Refund check laying on top of a $100 bill

An IRS Notice CP32A is informing you that your refund check has not been claimed. To resolve this notice, you must call to request a new refund check.

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Woman Reading Letter

IRS Notice CP21C is sent out when a taxpayer requests to make a change to their tax return. The notice informs the taxpayer that the change has been completed.

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Man opening a letter

IRS CP06A notice asks you to verify the Premium Tax Credit you claimed on your tax return with documentation. How should you properly respond to this notice?

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Man reading a letter

You just received an IRS Notice CP90 - Intent to Levy and Unpaid Taxes - in the mail. Don't panic. Let's walk through the letter and determine your next steps.

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Senior couple reading letter intently

They received an IRS tax notice demanding payment for over $600,000 in tax, interest, and penalties. Not knowing what to do, they contacted TaxAudit for help.

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IRS displayed by gold blocks

If you have a pending tax bill, putting the IRS and a bond payment together might be what works for you. How can a bond payment help you with the IRS? 

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concerned woman looking at letter

One of the most common notices we see at TaxAudit is the IRS Letter 3219C – also called a Notice of Deficiency. What is this notice? Why did you receive it?

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Picture of

Thirty days from the date of the IRS Notice CP90, the IRS has the right to begin taking assets. This can include bank accounts, wages, and retirement accounts.

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internet network cables connected to a router or modem

If you are self-employed, you may be able to deduct your home office internet expenses on your taxes. Let's review the guidelines for an internet deduction.

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Woman Reading Letter

IRS CP80 notice explains you have a credit on your account for the tax year in question but have not filed a return. The credit will apply to any amount due.

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Man reading a letter - distressed

IRS Notice CP60 informs taxpayers a payment was posted to their account in error. The IRS removed the payment and the taxpayer now owes additional tax.

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U.S. Mailbox

The IRS is required to send out these notices to any taxpayer who has filed a return and has a balance due that has not been paid.

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Person opening letter

IRS letter 4800C is typically asking for verification of items you claimed on your tax return, such as credits, wages, and withholding.

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Woman looking at tax paperwork

A CP30 notice is sent to inform you that your anticipated refund has been reduced. The IRS will outline why your refund was reduced and list the new amount.

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Woman reading a letter on a phone

IRS CP23 letter notifies you of a change to your return due to a difference between the amount of estimated tax payments and the amount posted to your account.

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Woman Reading Letter

The IRS sends out a CP14 notice to notify a taxpayer when they have unpaid taxes and/or penalties and interest. What should you do if you get a CP14?

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Man looking at a letter

The IRS CP22A notice is letting you know that changes were made to your filed tax return, and because of this, there is now a balance owed.

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Puzzle with missing piece - money shown where piece is missing

If the IRS hasn't debited your accound payment, the first step is to contact your bank to see if the payment has been taken from your account.

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Woman looking at paperwork

The IRS is billed you $4,000 due to a $8,000 capital gain or dividend. You don’t know what the $8,000 is from and believe if inherited it should be tax free.

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Woman opening letter

IRS letter CP13 states a miscalculation was made on your tax return and that you do not owe any additional tax, but you will no longer be receiving a refund.

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Man reading a letter

CP11 explains that the IRS has made changes to your return in order to correct a miscalculation made while filing your taxes and additional taxes are due.

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Levy written on wooden tiles

CP504 is one of the scariest notices you can receive as it is considered a final notice, warning that the IRS is preparing to levy (or seize) a property.

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Handcuffs laying on a 1040 form

The IRS sends letter 4464C to inform you they have chosen to verify your return accuracy. It's sent after a return has been filed but before a refund is issued.

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Payment Plan

The IRS has established payment programs to allow a personal or business debt to be paid off over an agreed period of time. Here's how to set up a payment plan.

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Woman Reading Letter

Taxpayers receive an IRS CP503 because they have an unpaid tax debt. This is the 2nd notice the IRS sends taxpayers that they have an outstanding balance due.

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Wage Garnishment

The IRS uses an annually updated wage garnishment table to determine how much the taxpayer needs to live on and then the IRS takes the rest.

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Woman reading letter

The IRS will always notify you by mail if your tax return is selected for audit. The IRS will not initiate an audit by a phone call, email, or text message.

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We Will Win written on blocks

"Winning a tax audit,” simply means that you’ve paid the IRS no more than you rightfully owe. This is where the professionals at TaxAudit come in to help!

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Internal Revenue Service Sign on Building

If you have ever gone through an audit with the IRS or are just curious why the IRS audits tax returns in to begin with – you are in the right place.

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Person looking over paperwork

The gap between what taxpayers owe versus what they actually pay looms large. IRS audits are an attempt to collect the funds required to close this gap.

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blank check and a pen

Yes, the IRS does offer payment plans to those taxpayers who owe taxes. The IRS offers a series of payment plan options for those who need more time to pay. 

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IRS Examiner

If you’ve been lucky enough to never receive a love letter from the IRS, you’ve probably wondered: What is it like to go through a tax audit?

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refund written with blocks

If the IRS is taking your refund, sometimes you need a qualified tax professional who understands IRS collection procedures to intercede on your behalf.

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Unemployment and US Treasury Check

When you owe money to the IRS, they can take a variety of actions against you to collect the balance due. You can repay the IRS debt using unemployment checks.

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Sold Sign

Father died 30 years ago. Stepmother just sold house and children split father's portion of sale (after filing of an affidavit of heirship). Do we owe taxes?

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Tax Refund

You received an IRS Notice CP12 because the IRS corrected one or more mistakes they believe were made on your tax return. What do you need to do?

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IRS check with money surrounding it

Now that you have your Letter 6475, what should you do with it? The letter will inform you of the amount that the IRS paid to you for the third EIP payment.

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Child Tax Credit

The IRS will issue Letter 6419 to provide the total amount of advance credit that was paid to the taxpayer -  keep this letter for your 2021 tax return!

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Woman reading a letter

You open your mail and see IRS Letter 5071C. What on earth does this letter mean? Are you being audited? Why did you receive this letter in the mail?

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Warning Identity Theft Sign

You received an IRS Letter 5071C for a tax year in which you never filed a tax return. It is likely that someone might have filed a tax return in your name.

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Fresh Start Ahead

If you’re struggling with back taxes, you may be able to qualify for assistance under an IRS initiative called Fresh Start. Here are 3 ways to be eligible.

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Back Taxes

When a taxpayer fails to file their return, the IRS will come knocking usually in the form of a notice of tax due for back taxes. Back tax help is available.

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Cash, IRS check, and Social Security Card

Taxpayers who are behind on their federal taxes may be surprised to know that their Social Security benefits are ripe for the picking by the IRS.

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adding machine

The first thing to do when you get audited by the IRS is to not panic! It be scary but with the right tools and resources you will be able to get through it.

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Man reading a notice

Recently, the IRS sent many taxpayers  a confusing set of letters. The follow-up notice, Letter 6470, notifies the taxpayer of their legal rights to appeal.

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IRS

Rest assured the IRS has no advance knowledge that you have elected to have representation in the case of an audit through Audit Defense.

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Pencil Pointing to

One way to find out how much money you owe the IRS is to use the IRS Online Account tool, which allows you to view helpful information about how much you owe.

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Worried Woman

If you haven’t received a notice from the IRS, but think you might owe money to the IRS, you can also utilize the IRS' Online Account tool.

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Amount You Owe

The thought of owing the IRS money can be a scary thought – especially if you’re not sure you do! The IRS has provided tools to help taxpayers like you!

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Pay your tax bill

What a satisfaction it is saying goodbye to old debts. There are several options available to taxpayers who want to make a payment for back taxes to the IRS.

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Man holding sign saying HELP!

When a taxpayer receives a collection notice from the Internal Revenue Service, their typical first reaction is one of panic but it doesn't have to be scary.

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IRS Audit Written on a Paper

The length of an audit depends heavily on the issues being addressed, the level of documentation required, and the Examination Division doing the audit.

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Audit

First and foremost, audit defense works by protecting you from the hazards and stress of facing off against the IRS (or a state tax agency) on your own.

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New Roof Being Installed

Costs for home improvements, such as a new roof, add to the cost basis of your property and will reduce your taxable gain when you sell your home.

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Person getting mail out of mailbox

The first step in preparing for that audit is reading the letter carefully. Audits rarely examine everything on the return, but only ask about specific items.

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new plant growing out of coal

In 2011, the IRS launched the Fresh Start program and has since expanded the program in the hopes of assisting more taxpayers who carry federal tax debt.

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Stimulus Check

If you are currently under audit with IRS, you will still receive a stimulus check if your income falls within the eligibility limits.

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Woman reading CP2000 letter from the IRS

If you received a CP2000 notice from the IRS, it helps to understand what it is and how to handle it. Here are a few essential things to know about a CP2000.

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Jar with retirement savings

For some of us, retirement seems like an eternity away; for others, it is just around the corner. It is never too early to start saving for the future.

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Four jars with money and plants growning

The Fresh Start program is designed so that taxpayers pay their debt in full within six years, and without a serious financial burden being placed upon them.

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IRS Auditor

Audits happen for many reasons, and while you may think a disgruntled neighbor ratted you out, the reality is most IRS audits are initiated for other reasons.

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Audit stamped on a piece of paper with a gavel laying next to it

 Whether it’s an audit or a notice, receiving a letter in the mail from the IRS is most taxpayers’ worst nightmare. What can you do that will lower your risk?

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Owe Taxes

No matter the cause of each person’s tax debt, there are a number of different programs offered by the IRS to help taxpayers get back into the good books.

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Man with tax burden

Having a tax bill is not a situation anyone wants to be in. Fortunately, there are ways to deal with tax debt owed to the IRS. Let's explore a few solutions.

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clock on an audit report

The fact is that there is no standard answer to how long it will take for the IRS to finish up your audit and tell you what, if anything, you owe.

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File folders - one with the word Audit on the tab

Responding to an IRS audit is not the easiest thing to do. Surviving an audit is much easier with professional representation.

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IRS Audit

Generally, the IRS has three years form the date the return is filed to conduct an audit. However, there are exceptions to this three-year rule.

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Boy standing in front of chalkboard with a finger on his chin

The first thing to do is to check every name and Social Security number listed on the return with what is listed on their Social Security cards.

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Internal Revenue Service sign next to traffic light

Returns are being processed, and refunds are being issued. Things seem back to normal.

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Four Ice Cream Cones

So, what happens if you miss an Installment Agreement payment and/or can no longer make the agreed upon payments?

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Bowl of Ice Cream

Sometimes it only takes six little letters to strike fear in the bravest of taxpayers: IRS IOU (technically, it's not an IOU, but rather a bill).

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IRS Volunteer

The IRS is searching for volunteers to lend a helping hand and to share some wisdom in their communities.

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Pencil pointing to the words Amount You Owe on tax form

Congress reauthorized the IRS to use private debt collection agencies, or PDC, to collect outstanding tax liabilities.

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Passport with Denied stamped across it

The IRS can request the State Department to revoke a currently active passport of a U.S. taxpayer with severely delinquent tax debt.

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Person receiving fast food

The IRS is currently offering this cash payment alternative at participating 7-Eleven stores in 34 states.

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Tax Transcript

The IRS recently announced that their "Get Transcript Online" feature is now available for taxpayers who would like to obtain their tax transcripts.

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Handcuffs laying on a 1040 form

I got a phone call from the IRS last week.

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Man in swimming pool holding up trophy and Gold Medal

The IRS is well aware that the U.S. Olympic Committee pays medalists a cash bonus of $25,000 for winning gold, $15,000 for silver, and $10,000 for bronze.

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Depart of the Treasury Letter

We have created a list of 5 quick tips on how to deal with any IRS letter you receive to help make the process as quick and painless as possible.

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$20 bill, American Flag, and Capital Building

The latest news from the IRS regarding the amounts taxpayers are allowed to spend on necessary living expenses when owing the IRS is not for the faint of heart.

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Four glasses

The correspondence at the focus of my holiday lament is IRS Letter 4464C, otherwise known as the <em>Questionable Refund 3<sup>rd</sup> Party Notification</em>.

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Pencil on Monthly Expense Guidelines paper

There are only two months left in the year. What can I do now to avoid paying a big tax liablity on my Schedule C business next year?

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Block with Tax words on it

The letter you hoped would never come arrived. You open it and discover the IRS has graciously sent you an invitation to their work mileage deduction review.

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Crime scene tape and magnifying glass over 1040 tax forms

Tax nightmares aren’t just for scammers. They can happen to people who make innocent mistakes, and even to those who believe they are doing the right thing.

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$20 bill, American Flag, and Capital Building

In essence, the flat tax is a system of taxation where one tax rate is applied to some types of income with no deductions.

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hat

What do “Scarface” Capone and a tax audit have to do with each other? Scarface went to prison for - of all things - tax evasion!

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Stock Chart

I got a CP2000 notice from the IRS. It says I owe $12,269 for securities I sold. I purchased the stock in 2005 and sold it at a loss of almost $10,000...

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diamond ring

While I was working out at the gym, someone broke into my locker and stole my diamond ring. It’s my wedding ring and I always take it off before doing...

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businessman in wheelchair

Are disability payments taxable? This is a good question, but there is no correct general "yes" or "no" answer. 

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Woman

I do PR in the Bay Area. My hairstylist says I can deduct my entire salon bill on my taxes because it helps me look good at events. Is this correct?

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path going through forest

I want to donate to my favorite politician’s 2016 campaign for our state’s House of Representatives. Are there limits to how much I can deduct?

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1040 Pie Chart

Should I include notary feeds on my tax return? 

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Rx bottle that says Affordable Care Act

I received a 1095-A form for health insurance after I had already filed my taxes.

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Pen, calculator, and blocks that spell out TAX on financial papers

I would really appreciate some advice on filing estimated taxes. Please let me know if you provide this service.

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Person on computer attempting ID theft

The IRS estimates they received over 2.4 million fraudulent returns for the 2013 filing year. If you’ve been the victim of this type of crime…

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houses

My husband and I bought a home. We sold our old house a few months later. Will the profit on the old house be taxed if we do not roll it into the new house?

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Roof on brick house

The expenses I paid out on my rental were $12,000 more than my rental income, yet my tax return shows a deductible rental loss of zero. Why?

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Tax scammer

These thieves use a legitimate taxpayer’s name, address and social security number to file a fraudulent return claiming a large refund, and then divert...

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Internal Revenue Service building with traffic signal in front displaying a red light

If you get audited, do they send a letter or do they call you? 

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Yellow sign that says Retirement Ahead

You want to save money towards your retirement, but your employer does not offer a retirement plan, such as a 401(k). You are not alone...

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Green sign that says Retirement Next Exit

You just found out your Uncle Jerry passed away and that he had listed you as the sole beneficiary to his traditional IRA account. You go down to the bank...

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Personal Development, Guiding Skills, Help, Coaching, Learning

My wife is training to begin her career as a life coach. Can the expenses of her training, including tuition, room, board & travel, be tax deductible?

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Rx bottle that says Affordable Care Act

You might have thought that with the new Health Care Reform more of all the money you spend on health insurance and medical expenses would be deductible.

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woman on the phone holding baby

I am a policy and procedure writer for a company. Due to my long commute, my boss lets me work from home one day a week. Can I write off my home office?

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keyboard that says Crowd Funding

Crowdfunding is a popular way to raise funds for businesses, charities and individuals. It occurs when someone asks others to contribute to their idea or cause.

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man and woman getting married

My wife and I are preparing our taxes, and, due to her employment situation(s) and our investments, we have received a number of 1099s...

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Internal Revenue Service building with traffic signal in front displaying a red light

Are you short on cash and don’t have the money to pay your tax bill? The IRS does have a few options for the taxpayer who is cash short at tax time.

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W-2 Wage Statement

 filed my tax return, and then a W-2 came in the mail for a job I worked earlier this year that I had forgotten about. How do I file this? 

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two people looking over financial charts

My wife has an IRA under professional management with a financial advisor here in Portland. Can we deduct the fees charged for his services?

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$100 bill

The holidays have come and gone, footballs are filling the air as bowl games and playoffs are well underway, and it’s time to start thinking about…taxes?

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Tax scammer

What form do I file with the IRS for 2014 for a fraud case where I lost lots of money. The fraud case was adjudicated and the offender now sits in Fed Prison.

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The Grinch

The holiday season is a time for giving, but if you don’t follow the carefully prescribed rules for charitable giving, the IRS may disallow your deduction.

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Gift wrapped in five dollar bill

I’ve never been married and I have no children. I’ve been successful in my career and have some money saved. I want to give my six nieces and nephews $20,000

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Yellow house with white fence

I just had my home refinanced to a lower interest rate and to a 15-year fixed mortgage. What are some of the things that are associated with refinancing...

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Retirement Ahead Sign

Did you retire this year or turn 70 prior to July 1st? You may have think about Required Minimum Distributions (RMDs).

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identity theft

 received a phone call from IRS telling me that I owe them $2,500. They said they sent me a letter in January of 2014 that I signed for telling me the errors...

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Rx bottle that says Affordable Care Act

We heard about it all the way back in 2010, but the Individual Mandate − or Minimum Essential Coverage − did not go into effect until this year.

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Block with Tax words on it

My husband passed in February of this 2104. We have always filed a joint return. What do I need to do this year?

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Hands holding a heart

We loaned our car to a missionary home for a visit and fundraising. Can we deduct the mileage as a charitable contribution?

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Student desk with books and apple on it

I have a daughter who is eligible for the American Opportunity Tax Credit of $2,500.00. Can she also use the Lifetime Educational Tax Credit of $4,000.00?

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Football Field

Sunday during the fall is a huge day of the week for many Americans. Namely, the sporting fiends with professional football fever. The National Football...

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RV driving on the road

Can I claim the interest I pay on my RV on Schedule A as mortgage interest on a second home? As long as your RV loan is secured by the RV and the...

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Flood

Casualty losses can happen to taxpayers, such as a fire caused by a faulty heater. Do you have copies of your important documents in a safe place? 

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Woman filling out a tax form

When it comes to proving deductions taken on a tax return, the burden of proof is on the taxpayer, according to the Internal Revenue Code (IRC). 

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Dictionary with the focus on the word Taxpayer

If you made an mistake on your taxes or omitted required information, such as a late-received W-2 or K-1, you can file an amended return on Form 1040X.

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Woman filling out a tax form

It’s still not too late to make adjustments to your withholding or estimates to make sure your 2014 taxes will be done correctly and you will not be surprised..

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Woman holding house keys

We bought our home in 2009, in Arkansas, did major improvements, and then leased it out from 2010 though 2014. We now have the place up for sale...

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Clock pointing the time hands towards the word TAX

The overall percentage of individual tax returns examined in 2013, published by IRS, is about 1%; however, this number only takes into account “examinations”

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Nurse helping woman

My brother is in assisted living; what part of his expenses can be deducted? He needs assistance with getting dressed and all daily hygiene activities.

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Soldier Saluting the American Flag

Let’s talk about business deductions for members of the military. The same rules apply for active duty personnel and reservists.

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3 Armed Forces Members

If you are a member of the U.S. Armed Forces, there are tax breaks written just for you. Merchant Mariners and American Red Cross employees do not qualify...

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Ocean

We have been asked to build some basic boxes to be used as a stage for a company. They plan to pay us but are not placing us on their payroll as employees.

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Dice

If you like to gamble, you probably already know that your gambling winnings are considered income, especially if you gamble within the United States.

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Yellow house with white fence

I completed a short sale in 2014 and was wondering if it’s possible to avoid taxes on the difference. I sold it for $142,000, the bank got $127,000, and the...

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Man asleep at desk

Years ago, I was just like most people when it came to taxes. Just the thought of doing my tax return gave me hives. I had been burned twice at tax time...

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Flooded street with sign that says High Water

My house got water in it this past month. I needed to clean up the mess, replace the carpet, pad and doors.  My insurance would not cover the loss.

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Application for Health Coverage form

Now that the furor, for the most part, over the Affordable Care Act has subsided a bit, let's take a quick look at the PENALTY for not abiding by this law?

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Supreme Court

This decision is likely to impact many taxpayers, particularly anyone expecting to inherit an IRA from a parent or someone else.

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Dress Shirts

Could you advise on how the value of items is determined for charitable contributions? I am about to donate several of my designer suits to charity. 

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Gavel

Yes, Uncle Sam loves lawsuit settlements just like plaintiffs do. Before you start spending the money, there are some things you need to know.

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Dictionary with the focus on the word Taxpayer

For several years, National Taxpayer Advocate Nina Olson has been arguing for the simplification and codification of taxpayer rights and responsibilities.

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Man on couch talking to Psychotherapist

My wife has her own business as a psychotherapist and is the only person involved, i.e., she has no employees. She frequently has to submit claims to insurers..

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glasses and pen laying on top of tax form

There are so many ways that taxpayers have tried to do an end run on the tax system that the IRS issues an updated consumer alert each year titled...

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Divided wedding cake with groom on one side and the bride on the other

Taxpayers who must pay alimony to a former spouse may deduct it from his/her tax return as an adjustment to income.

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Room partially painted

How do you know if you have spent substantially full time repairing and maintaining a rental property when you stay in it so it doesn't count as a personal day?

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Internal Revenue Service building with traffic signal in front displaying a red light

The IRS generally won’t look for you unless you owe them money. If you don’t file for a refund within 3 years of the original due date of the return...

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Tax Return Preparer Credentials

All paid tax return preparers are required to have an IRS PTIN (Preparer Tax Identification Number) which they must enter on the tax returns they prepare.

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Rolled up receipt

If you have a dedicated credit card for your business, can you use the statement as the receipt for your business entertainment, meals, travel, etc.?

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change button on a keyboard

Do feel motivated to give money to an organization after the last hurricane/tornado/flood/fire? Did you get a phone call, email, personal appeal by someone?

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Basketball resting on a Basketball Court

While we call it the “Jock Tax,” it really is a tax that does affect a variety of people, but we are focusing on the NBA because of the extensive travel habits.

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The word TAX spelled out with tiles on paper money and next to a stack of coins

I hate allowing the government an interest free loan. This year I had a penalty for owing too much at the end of the year. So my question is: how…

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drive through window

First job ever? What do you do about those pesky tax forms they gave you at the job? How do you fill them out? Why are they taking all that money out!?

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Handcuffs laying on a 1040 form

My son was arrested in December of 2012 and spent the entire year of 2013 in jail awaiting trial. During that year I paid his attorney fees, car payments...

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man laying on grass relaxed

You may have heard that if you are self-employed, or you are expected to entertain clients as part of your job, you can deduct the costs of those meals...

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Homes surrounded by mountains

I bought a house in Arizona in 1996 for $95,000. I did two cash-out refi’s totaling about $30,000 through 2004. I sold the house in 2014 for $165,000, and..

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Clock pointing the time hands towards the word TAX

You got your return filed on time and you’ve got a nice big refund coming. But the funds don’t show up in your bank account when you expected them to. Now what?

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Woman blowing bubbles on couch with child

My two children live with my ex. He is the custodial parent but we have joint custody. I pay child support and they come over to my house almost every weekend.

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TAX DAY written with blocks

You owe money to the IRS – now what? Don’t faint, don’t freak out, and don’t worry! There are simple ways to take care of that balance due.

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Tax Day and April 15th stamps by stack of papers

The April 15th deadline is approaching. Taxpayers are most likely to make errors on returns when they are rushing to finish their returns before the deadline.

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Piggy bank

Under 59½? Need some extra cash? Don’t use your retirement! It isn’t a savings account or a piggy bank to be used to buy an extra pizza on Saturday night

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Money

If you are upset about the national debt, you can make a deductible charitable contribution to the Bureau of the Public Debt to help out.

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Man and Woman riding in a red car

I use my car in my business. How much of it is tax deductible, and what type of travel is deductible? Are my trips going back and forth to work deductible?

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Calculator and Stethoscope

Feeling sick? Broke a foot? Broke a tooth? Kids in braces? Are these deductible on your taxes? Well – maybe. Medical, dental, and even alternative health care..

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Key in locked box

The fastest way to get your money without paying additional fees is to e-file your return and have the money Direct Deposited to your bank account.

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Partially painted room

I was an owner contractor on the restoration of my house. I bought some used construction equipment to do the work, items like gas powered pressure washer...

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Silhouette of Micheal Jackson

Michael Jackson stirs up many good memories for me. I mean he is the Elvis of my generation. I vividly remember getting his Thriller record for Christmas...

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city

In a recent case of tax evasion, Ty Warner, the creator of “Beanie Babies” was hit with $53.6 million in penalties for hiding money offshore.

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identity theft

Tax scams increase exponentially during the income tax filing season. If you want to avoid being a victim, be aware that when someone offers you a “chance of...

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Scammer

Phone Scams: There are numerous phone and internet scams claiming to be the IRS (or other government agencies). Do not give personal information to anyone...

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Hand holding stack of 100 dollar bills giving it to another hand

In order to qualify for an Earned Income Tax Credit (EITC) of up to $6,044, you must first meet these two qualifications: You must have earned income...

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ipad

As for an individual with a business, it is beneficial to research what is on the market in regards to business accounting software. There are numerous...

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Gold Record

I’m sure you remember when Susan Boyle became an overnight web sensation. Since then, thousands of hopeful musicians, writers, artists, and dancers...

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stack of large books

 It’s a long story that begins long before the arrival of the first Form 1040 Income Tax Return of Annual Net Income of Individuals...

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SmartPhone with Apps

The IRS just announced a new version of their mobile app, IRS2Go. You can use the app to track your refund status and more.

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expert highlighted

Introducing Carolyn Richardson! Our highly effective and experienced tax audit professional from Hawaii! With her three decades of tax experience,…

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Tips

Here are some simple tips to help you reduce your audit risk: Proofread your tax return A mistake on just one figure or item can present IRS audit flags…

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Audit Stamped on 1040

When your tax return is audited, the IRS will ask to see records and documents that show how you came up with the dollar amounts reported on your tax return.

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This blog does not provide legal, financial, accounting, or tax advice. The content on this blog is “as is” and carries no warranties. TaxAudit does not warrant or guarantee the accuracy, reliability, and completeness of the content of this blog. Content may become out of date as tax laws change. TaxAudit may, but has no obligation to monitor or respond to comments.