Many people feel an immediate sense of dread or panic when they receive notice letters from the Internal Revenue Service (IRS) in their mailboxes. After all, the IRS generally only communicates with people about issues related to their federal income taxes. A small...
Facing a tax audit by the IRS can be a daunting experience, but understanding the process and knowing how to prepare can help alleviate some of the stress that you may be feeling. An IRS tax audit seeks to verify that all of the income and deductions that you have...
You're being audited. While you're not thrilled, what you're really concerned about is making a mistake. You don't want to be blamed for trying to break the tax laws, and you want everything to go as smoothly -- and quickly -- as possible.Below are four tips that can...
The hardworking residents of Danbury, Connecticut (Fairfield County), work hard and pay their taxes. However, there may be instances when taxes are miscalculated or otherwise inadvertently underpaid. If the Internal Revenue Service (IRS) feels that there is a...
Whether you've attempted to do your own taxes online or have submitted a complex filing due to owning diverse assets, the risk of an Internal Revenue Service (IRS) audit is real for everyone. This may lead you wondering what type information is most apt to get the...
A recent federal court ruling in favor of the IRS should send a cautionary note to both individual and business taxpayers alike.Two former top executives at Sprint Corp. brought the case, seeking $159.4 million in damages against the IRS. The individuals had been...
Tax season alone, whether you’re doing the paperwork for a business or for yourself, can bring a long of anxiety. During this time you collect all your paperwork, sort through the numbers and try to figure what your financial picture looked like last year. This can be...
The power of the IRS summons might surprise you. Whereas a warrant request typically must name a specific person, the IRS has been allowed to request a summons for a whole category of taxpayers, without specifically naming them. The so-called John Doe summons, issued...
Although the risk of an audit may be statistically low for the average individual taxpayer, are small businesses at a disproportionate risk?As background, the IRS employs certain red flags in its audit software. Since the IRS automatically gets copies of 1099s and...
When it comes to tax evasion, the IRS cares about intent. This is why tax evasion, defined in Section 7201 of the Internal Revenue Code, requires the IRS to prove that a taxpayer purposefully underpaid or misrepresented his or her taxes.Examples of tax evasion include...