Tag Archives: Audit

How the Government Shutdown Affects You as a Taxpayer (part 2)

While Congress and the White House try to come to an agreement on border wall funding, the partial shutdown of the federal government continues, with the IRS currently functioning with barely a skeleton crew. The IRS will still receive tax returns, and the White House tells us (for now, anyway) that the IRS will still […]

The Pros and Cons of Streamlined Program vs. OVDP

You face a challenging financial situation. You want a reprieve—a clean slate. Both streamlined programs and the Offshore Voluntary Disclosure Program (OVDP) may be able to help. What are these options? How do they compare to one another? Which should you choose? The Pros and Cons of OVDP Are you worried about criminal prosecution because […]

Differences Between the Financial Crimes Enforcement Network (FinCEN) and the IRS

Do you understand the differences between the Financial Crimes Enforcement Network (FinCEN) and the IRS? If not, you’re not alone. Let’s clear up your confusion about these two very closely associated components of the U.S. Department of the Treasury. FinCEN The primary function of FinCEN is to protect the U.S. financial system from any improper […]

FBAR Filing Requirements You Do Not Want to Ignore

Do you have overseas financial interest or assets worth $10,000 or more? If the answer is yes, you probably need to file an annual report of Foreign Bank and Financial Accounts (FBAR). Fail to do this, and you may face serious civil and even criminal penalties. The late filing doesn’t mean the IRS will immediately […]

Do You Need to File an FBAR?

Tax season beckons. Like too many Americans, you’re worried and confused. Do you need to file an FBAR in addition to your standard state and federal income taxes? Let’s clear this up, so you can relax and avoid trouble. According to the IRS, the United States “persons” are obligated to file an FBAR if: You […]

Can Filing an FBAR Trigger an Audit?

You’re planning to file an FBAR (Reports of Foreign Bank and Financial Accounts). Will this action automatically get you audited by the IRS? Short answer: no. However, not filing an FBAR may increase the risk of an audit. Here’s what you need to know. What Actually Triggers IRS Action? The possibility of an IRS audit […]

FBAR Audit—What Criminal Charges Could You Face?

In criminal cases, penalties often depend sensitively on questions of intent. Did you willfully commit a crime… or just make an error or omission? In the context of FBAR (Reports of Foreign Bank and Financial Accounts) auditing, authorities want to know whether you intentionally opted not to share information about your foreign accounts and assets. […]

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 […]

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 Saves $25,000 in Potential Assessments!

We recently had a client hire us for an IRS audit covering tax years 2012 and 2013. The IRS was challenging her business expenses listed on the schedule C, primarily travel, meals and entertainment, as well as mileage and vehicle costs. We definitely had our work cut out for us. First and foremost the week […]