Archive / IRS Audit

RSS feed for this section

Finding the Right Kind of Help to Deal with a Schedule C Audit

Even accomplished business owners will want to bring an expert into a Schedule C IRS audit. The process can be scary and intimidating, and it can make all the difference if you have an experienced tax professional at your side. Hire the right help and avoid the wrong help with these tips. Hire The Right […]

Documents to Gather Once the IRS Has Said You’re Being Audited

The IRS can request an audit up to six years after you file your business tax return. During your audit, you must prove that you filed an accurate tax return. Gather these supporting documents to prepare for acing your audit. Proof Of Income Start with Form 1099s, contracts and paid invoices, but then include more— […]

The New IRS Partnership Audit and You

As of January 1, 2018, the IRS changed how it audits partnerships and limited liability companies. Intended to make partnership audits easier and more efficient for the IRS, the changes apply to any entity that chooses to be identified as a partnership when filing taxes. Let’s look at some key changes and how they might […]

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 […]

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 […]

IRS Audit Concludes with No Change to 2014 Tax Return!!

Our client came to us this past December with an IRS Audit looming over his shoulders. He received notification from the IRS (generally called an IDR, or Information Document Request) that the IRS was conducting an audit for his 2014 tax return. More specifically, the IRS Audit wanted to take a peek at car and […]

IRS Audit Representation: What is an IRS Audit? How Should You Respond Strategically?

This just might be the scariest phrase in the English language: IRS audit. But what is an IRS audit, exactly? Should you be scared or anxious? How should you respond strategically? Below, we’ll explain how to protect yourself against the IRS and reclaim your sanity. Definitions and Background When the IRS reviews your tax return […]