News Articles

IRS Tax Audits – When It Pays To Ignore An IRS Audit Notice

IRS Tax Audits – When It Pays To Ignore An IRS Audit Notice If you decide not to show up at the time and place requested in an IRS audit letter, you tacitly agree to pay the additional tax in question. But sometimes, that’s the smartest course of action. When it’s wise to stay home: […]

The Disappearing Check 21 Law – Check Clearing For The 21st Century

The Disappearing Check 21 Law – Check Clearing For The 21st Century The Check 21 Law went into effect on October 28, 2004 installing regulations which control the electronic storage of check images. Ronald Semaria has written a detailed summary of the law and the ramifications of the Check 21 Law. Read his article on […]

IRS Tax Audits – Know Your Rights Before An Audit Begins

IRS Tax Audits – Know Your Rights Before An Audit Begins You can appoint someone to represent you in IRS proceedings. You usually can’t be forced to attend yourself. An agent must explain your rights before starting the audit process. The agency must abate any part of a penalty or extra tax that is caused […]

Step Up Anti-Fraud Efforts As Business Improves

Step Up Anti-Fraud Efforts As Business Improves Everyone has goals when they first start. In the beginning, people keep track of every little item, maintain perfect records and watch their employees like they were under a microscope. In fact, that person probably could account for every paper clip. Unfortunately, as a business grows in the […]

Scanning Receipts

Scanning Receipts 1997-13 I.R.B. 9 – Section 6001 — Required Records – Statement of Procedural Rules – Summary GUIDANCE OFFERED ON ELECTRONIC RECORDS. The Service has provided guidance (Rev. Proc. 97-22) for taxpayers that use an electronic storage system to maintain their books and records. Records in an electronic storage system that complies with Rev. […]

Recordkeeping Rules – Know What To Keep And For How Long

Recordkeeping Rules – Know What To Keep And For How Long In most cases, the IRS has three years to audit your return. You can also file an amended return within those three years. But the IRS has up to six years if you understate your income by more than 25%. And the statute of […]

Loans To Relatives

Loans To Relatives PUT ALL FAMILY LOANS IN WRITING Documentation is critical on any family loan. If the loan goes bad, you’ll want to claim a tax deduction. But, without proper paper work, an IRS auditor will say the transaction was a gift, which means no deduction for you and a possible problem with a […]

IRS Tax Audits – Correspondence Audits

IRS Tax Audits – Correspondence Audits This type of audit is the least threatening. You’ll probably never see an IRS employee; it will all be handled through the mail. Such exams are typically limited to a few issues that you can clear up by mailing copies of bills, checks, receipts or other relevant documents. The […]

Bad Debts – Family Loans

Bad Debts – Family Loans If you made an ill-advised loan to a family member, the saving grace is that you’re allowed to claim a nonbusiness bad-debt deduction. Your write-off is considered a short-term capital loss. So you can use it to shelter your capital gains for the year. If the loss exceeds your gains […]