BE PROACTIVE ABOUT AN IRS AUDIT One of the many goals business owners have is to avoid an IRS audit at all costs. However, audits happen less frequently than you may think. Audit rates are at a historical low, with only 0.6% of individuals being audited for the 2018 fiscal year. Although this is good news, there is no guarantee that your business won’t be picked for an audit. Businesses, … Read more
BE PREPARED FOR AN IRS AUDIT The 2018 (fiscal year) audit statistics were recently released by the IRS. It showed that fewer taxpayers had their returns examined compared to prior years. However, this will be of little consolation if you are one of the few that are chosen for an audit. Understanding how and why an audit is conducted may better prepare you. IRS audit statistics Only 0.59% of individual … Read more
According to the IRS Data Book, the IRS audited nearly 1.1 million tax returns in 2017. That is approximately 0.5 percent of all returns. Although it may not seem like a considerable number, don’t raise your glass in victory too soon. The IRS has a few folks on their radar, and sometimes it is not because one did anything wrong. Why the IRS may audit you The IRS not only collects … Read more
Use an audit to find savings It’s a safe bet that state tax authorities will let you know if you haven’t paid enough sales and use taxes, but what are the odds that you’ll be notified if you’ve paid too much? The chances are slim — so slim that many businesses use reverse audits to find overpayments so they can seek refunds. Take all of your exemptions In most states, … Read more
If you recently filed your 2016 income tax return (rather than filing for an extension) you may now be wondering whether it’s likely that your business could be audited by the IRS based on your filing. Here’s what every business owner should know about the process of IRS audits. Catching the IRS’s eye- red flags Many business audits occur randomly, but a variety of tax-return-related items are likely to raise … Read more
