Two words often strike fear in the hearts of tax paying individuals: IRS audit. It’s often perceived that an audit is completely random, but in reality there are several red flags that trigger the IRS to take a second look. Keep in mind that these issues do not necessarily guarantee an audit, but rather might increase your chances. It’s never a good idea to falsify information to avoid these items, so it’s best to be Read More
A Brief Q&A on U.S. Tax Court
For most Americans, filing their taxes with the IRS each year is a straightforward process that ends once the amount of taxes owed to the government is paid. However, some taxpayers become engaged in a dispute with the IRS when they are notified that they owe much larger amounts of taxes than what their own calculations represent. When a dispute arises with the IRS, taxpayers have the option of presenting their case Read More
The Truth About Taxes: Exposing 4 Myths About IRS Audits
When tax season rolls around, few things are scarier than the risk of being audited. Whether you’re a business owner or a hard working employee, the thought of an audit can sometimes keep people from filing their annual return, or at the very least cause serious anxiety and procrastination. There are a lot of myths regarding IRS audits, and they often paint a very inaccurate picture of how the system actually works. Read More
Understanding the IRS Tax Lien
It’s true that you can’t go to jail simply for not paying the IRS (though, you can go to jail for lying to the IRS or trying to cheat on your taxes), but the IRS has other methods it can use to get money you owe them, and understanding them is vital. For example, the IRS can file a tax lien against your house (or other real property), which will make it difficult for you to sell your house or refinance your Read More
Attracting the Wrong Kind of Attention
Attracting attention can be a fantastic thing. You can attract the attention of a boss who notices all the hard work you’ve been doing and gives you a bonus or a promotion. As a young athlete or performer you can attract the attention of a talent scout who wants to sign you to a contract. You can attract attention to a charitable cause through effective marketing tactics and promotion. But when is attracting Read More
The Three Types of IRS Audits
Receiving a notice that your tax returns are going to be audited by the IRS can be a daunting and confusing experience. What are you supposed to do? How are you supposed to respond? How can you expect the process to play out? Audits should always be taken very seriously, but as long as you properly prepare yourself and set your expectations, they should not be a cause for panic. The scariest aspect of an IRS Read More
The Freedom to Request Information
Among the several rights granted to United States citizens, the Freedom of Information Act (FOIA) is one that most people overlook. It is a significant privilege. In 1966, Congress enacted FOIA to provide individuals with access to “identifiable records.” Records could be obtained without the requirement to demonstrate a need or reason for the records. This means that the government had to show a reason for Read More
The Framework of the Internal Revenue Service
Just what exactly is the IRS? Many can describe what the Internal Revenue Service (IRS) does through personal experiences, some good and some bad. Have you ever wondered, though, just what the IRS is? The IRS is a branch of the U.S. Treasury Department, and it is supervised by a Commissioner who is appointed by our President. Though its main headquarters are in Washington, D.C., the IRS has regional campuses that Read More
