Tag: tax audit

The IRS Has More Power Than You Think to Collect Taxes

One U.S. agency that many people fear is the Internal Revenue Service (IRS). Of course, there is no need to fear when you honestly report your taxes. When taxes are not reported honestly, there is a good reason to fear the agency because it has more power than any other U.S. agency. The IRS operates…


Bankers ‘Shocked’ by Federal Budget Bill Clause That Allows 30-Year Retroactive GST Audit

A group of 60 Canadian banks has told a Senate committee they were shocked to learn the federal government’s omnibus budget bill includes a clause allowing a retroactive GST audit on credit card issuers going back 30 years. “Retroactively taxing past transactions, especially in the face of court rulings to the contrary, erodes investor confidence…


IRS Announces a ‘Soft Notice’ Approach Instead of Hitting Americans With Tax Audits

The Internal Revenue Service (IRS) said in its recently released strategic plan that while it’s planning to get tough on wealthier tax dodgers, it would adjust enforcement efforts for ordinary filers to rely more on “soft notices” rather than tax audits. The IRS on Thursday released its 150-page plan (pdf) for how it will use…


Avoid a Tax Audit by Understanding the Triggers

Being audited by the Internal Revenue Service is a fear many people have every tax season. When that fear is present, it causes some legitimate deductions to go unclaimed. It means that you are leaving money in the hands of the IRS that is rightfully yours—and that you will never see it again. Although a…


Watchdog Finds No Misconduct in Selection of Comey, McCabe for Tax Audits by IRS Under Trump Appointee

A government watchdog has found no misconduct in IRS tax audits of former FBI Director James Comey and former acting and deputy FBI Director Andrew McCabe, putting to rest speculation that former President Donald Trump had pulled strings at the agency to target his political foes. The Treasury Inspector General for Tax Administration said in…


Fearing a Tax Audit? 5 Things You Can Do to Prepare

Tax preparation can be difficult for business owners, who must constantly strive to strike a balance between claiming as many deductions as possible and avoiding an IRS audit. The fear of the dreaded visit from a tax auditor can even drive some entrepreneurs to dismiss some deductions, including home office space, which has traditionally been…


If the IRS Calls, Don’t Answer: Don’t Get Hooked by Common Scams

Every year, various types of scams make their appearance. Scammers successfully steal millions of dollars annually through cleverly designed efforts to fool the unaware. Since COVID-19, the IRS has sent out multiple warnings that scammers are more active than ever. Recently, the IRS warned consumers to beware of three types of scams. If you’re waiting…


9 Red Flags that Could Lead to a Tax Audit

The IRS chooses some taxpayers and audits their tax returns every year. And an audit is examining or reviewing your informations and accounts to ensure you’re reporting things correctly and following the tax laws, which is troublesome for taxpayers. In 2016, the IRS audited one million tax returns. Although this is less than one percent of the…