Thanks & Congratulations

We've received your request.

Please check your email. And to ensure you receive everything you requested, please add to your contact list.

Top Results for:

Information and resources for preventing and preparing for tax audits.

Search Results

Top Five Ways to Avoid a Tax Audit - TurboTax® Tax Tips & Videos

If the IRS does decide to audit you, there is little you may do to stop it. You may, however, reduce the odds that you'll be singled out for that extra attention in the ...

What Are Tax Audits? - TurboTax® Tax Tips & Videos

A tax audit is an examination of your tax return by the IRS to verify that your income and deductions are accurate.

Red Flags that Tempt the Tax Auditor |

The IRS is auditing fewer returns. But be aware of red flags that will tempt any tax auditor.

IRS Audits - Internal Revenue Service

The video series follows three taxpayers through the steps of an audit, from audit ... according to the tax laws, to verify the amount of tax reported is accurate.

How Income Tax Audits Work - HowStuffWorks

An income tax audit is an examination of a tax return. During an audit, an IRS examiner makes a line-by-line assessment of your tax return. If something doesn't  ...

Get Your Business Listed

Get your business listed on this page

Reach active buyers and immediately increase your visibility

Get Started
Tax Audit Defense and Audit Help Experts | offers tax audit defense and representation services for IRS and state audits. Get IRS audit help from the experts at TaxResources, Inc.

Income tax audit - Wikipedia, the free encyclopedia

In the United States, an income tax audit is the examination of a business or individual tax return by the Internal Revenue Service (IRS) or state tax authority.

6 Reasons Your Tax Return Might Get Audited | Fox Business

Feb 18, 2014 ... While it remains unclear exactly what triggers an audit, tax experts say there are some common factors that can increase your chances of ...

11 tax audit red flags - You have a sketchy tax preparer (1 ...

Mar 28, 2012 ... Worried about a tax audit? Don't be a prime target. Here's what the IRS looks for and tips to help you avoid getting singled out.

Calculator: What's Your Risk of a Tax Audit?-Kiplinger

Use this simple calculator to determine your odds of being audited by the IRS. ... for what one author calls "the ultimate curse of a civilized society — a tax audit"?

Tips to Avoid Tax Audit, How to Avoid IRS Audit - AARP

Mar 14, 2013 ... En español | Last year, about 1 percent of 143 million tax returns were audited by the Internal Revenue Service. Put another way, that is nearly ...

Audit - Department of Taxation and Finance - New York State

Jul 23, 2013 ... As shown in an overview of the audit process, our auditors conduct a fair and unbiased review to determine if you paid the proper tax due.

Avoiding an IRS Audit

Of all the ways you can be unpleasantly surprised in your business, few measure up to notice of an IRS tax audit. Only about 1 to 2 percent of all returns get audited each year, but that still means a million or more tax filers can expect the IRS to review their returns. While there's no sure-fire way to keep the IRS at bay, there are strategies you can take to reduce your audit risk. Understanding basic tax rules is important, as is using sound business practices. Where most businesses get into trouble:
  1. Taking improper business deductions
  2. Overstating or understating company officer salaries
  3. Not filing employee payroll tax forms or failing to submit employee payroll taxes
  4. Misclassifying employees as independent contractors
  5. Operating in an industry with a known high rate of tax problems (including restaurants and construction)

Hire a good accountant and heed the advice you get

Finding the right accountant is one of your most important tasks. It's best to hire someone who's familiar with small business, and it's even better to retain an accountant with experience in your specific industry. For example, if you own a restaurant, you'd be wise to find an accountant who's dealt with restaurants and understands the need to collect taxes on employee tips - an issue that trips up many restaurant owners.

Watch your deductions.

One of the perks of business ownership is the ability to write off expenses and reduce taxes. But be careful. Oversized deductions are a red flag to the IRS and can trigger an audit. Get caught slipping personal expenses into the business mix and you might find yourself not only facing a back-due tax bill but penalties to boot.
IRS overview of business deductions.

Make sure your contractors aren't employees

The IRS has strict rules governing the use of independent contractors. Misclassified contractors are a favorite target of IRS auditors.And it's easy to slip up because the rules are complex.
Employee or Independent Contractor? You should also be aware of special rules governing so-called statutory employees who are sometimes misclassified by businesses as contractors. Read up on statutory employees in the IRS Employer's Supplemental Tax Guide.

Collect, pay and record payroll taxes

If you have employees, it's your responsibility to make all required payroll deductions. The IRS takes this responsibility very seriously and can be harsh on business owners who slip up. The task is especially important for restaurant owners who are required to make deductions for tips.
IRS guidelines for employee taxes. Business software like QuickBooks can help automate the payroll deduction process for you. You'll also need to keep records for four years. To find out what records you need to retain, review this checklist of employee records.

Keep good records on all cash transactions

If you're in a business that handles a lot of cash, you can expect the IRS to be suspicious. Cash doesn't leave as distinct a paper trail as other transactions. If you're living the high life but reporting low income from a cash business, don't be surprised if an IRS auditor knocks.
cash payment over $10,000 as required by law.

Regularly view your anti-audit defenses

At least once a year, check your IRS compliance situation, preferably with your accountant. Tax time is usually most convenient and allows you to make any necessary adjustments before filing.
  • IRS rules are complex and honest mistakes are possible. If you make an honest mistake, be sure the IRS auditor understands that. The difference between negligence and fraud is significant: penalties of 20 percent versus 75 percent.
  • The IRS isn't always right. If you feel you've been wrongly slammed by the IRS, you have the right to appeal.
  • Learn from your mistakes. Once you've been audited, you'll never want to go through it again. You can't make your business audit proof, but you can dramatically lower the odds of a repeat visit.

Get everything you need to grow your business

Receive tips, tools, and case studies with the Advisor, our weekly email newsletter

Thanks! We just sent your first issue

306,241 Subscribers