What it’s Actually Like to be Audited by the IRS–in the Words of Small Business Owners

Just thinking about an IRS audit makes most small business owners feel their pulse accelerate. Horror stories abound, and many of them are true. The legal drama, headaches, anxiety, and stress owed to dealing with the IRS are ordeals all their own. Couple these factors with financial losses potentially incurred by the audit, time lost […]

4 Common Triggers for IRS Audits

As a self-employed business owner, you can deduct advertising costs, office supplies and entertainment expenses on your tax return. These and other deductions can trigger an IRS audit, though, and here’s why. Disproportionate Deductions The IRS calculates normal deductions based on your income. High deductions with low income indicate possibly inaccurate record keepings, which could […]

IRS Scam Report— 2017 Year End Edition

In recent months, the IRS has issued a number of alerts to make taxpayers aware of a constantly evolving array of scams designed to impersonate the IRS. Whether by email, phone or text, these scams usually have a single goal in mind: To impersonate the IRS for the purpose of stealing your information, money or […]

The IRS May Have Paid $24B in Improper Refunds

Last summer, the Washington Times reported that the IRS paid out more than $24 billion dollars in refunds for 2016 based on potentially incorrect or fraudulent tax credits. According to the audit, the biggest misused tax credit was the Earned Income Tax Credit—which accounted for almost $17 billion in improper payouts. This figure also includes […]

How DMX Racked Up $1.7 Million In IRS Tax Debt And What Happens Next

“Every time I turn around, cats got they hands out wanting something from me. I ain’t got it, so you can’t get it.” These lyrics from rapper DMX’s 2003 hit “X Gon’ Give It to Ya” describe his scrappy rise to fame, but earlier this year, New York’s acting U.S. district attorney Joon Kim connected […]

A List of Common IRS Penalties and Fees, and How to Avoid Them

A sizeable tax bill to the IRS is bad enough on its own, but if you’re late in paying it, fail to file or make a mistake, your bill could be compounded by a number of IRS penalties, fees and interest—all of which could make a huge bill even more difficult to pay. Some penalties […]

Steps To Take After An IRS Wage Garnishment

It’s payday, and you eagerly check your bank account balance. Imagine your surprise when you see that it’s way smaller than you expected. What happened? Maybe the IRS garnished your wages. They can take this aggressive step if you owe back taxes and haven’t responded to numerous collection attempts. However, even if you missed these […]

The 4 Common Triggers for Getting Audited, If You’re Self-Employed

The phrase “You’re being audited” may strike fear in your heart, and rightly so. An IRS audit on your self-employed tax return can be time-consuming, intimidating and frustrating. Consider four common triggers that can cause a dreaded audit. Filing Schedule C You file a Schedule C because it calculates your business profits and losses and […]

What Is the Self-employment (Schedule C) Audit? How Does It Work?

CNN reports that the IRS conducted one million audits in 2015. Take time to understand details about a self-employment or Schedule C audit as you prepare your next tax return. What Is A Self-Employment Schedule C Audit? As a self-employed business owner, you file a Schedule C with your annual tax return. It details your […]

6 Big Mistakes to Avoid During an IRS Audit

During an IRS audit, you may feel confused, angry and frustrated. Your actions can determine the outcome of your audit. Avoid the mistakes listed below. 6 Big Mistakes to Avoid If the IRS Is Auditing You Ignoring IRS Notices Your IRS auditor may mail important notices or call you to discuss audit details. Read your […]