It’s a fact… You don’t need a receipt for an entertainment expense that’s under $75. But don’t think the IRS is asleep at the switch. They know that a lot of folks deduct many under-$75 meals, etc., that aren’t legit. What’s more, they can smell fishy entertainment deductions a mile away and, in an audit, make your life miserable if you’re not careful. Want to learn … [Read more...]
Audits
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Yikes! New IRS Audit Tool: The Form 1099-K Letter
The IRS is constantly looking for ways to nail tax-cheats and they’ve come up with a doozy. I’m talking about the 1099-K. This is the form that banks and others send to the IRS telling the IRS how much they remitted to you for your credit card, debit card, and similar transactions. The 1099-K reports the gross amount of transactions including credit-card sales, sales tax, … [Read more...]
How a little knowledge can save you in an audit
Most tax advisors serve their clients well. But that doesn’t mean that you should be ignorant of the tax law and passively accept all your tax professional’s advice uncritically. Hey. It’s your money and you need to be aware of what’s going on… especially if you’re called into an IRS audit. That’s what Mrs. and Mr. Smith found out the hard way. Read the full article. You … [Read more...]
Five strategies for surviving an IRS audit
You pick up your mail and there, among the bills and junk mail, is the letter you’ve always hoped would never arrive… a notification from the IRS informing you that you’re being audited. Sure this comes as a shock, but don’t panic. There are tried and true strategies you can use to come out of an audit unscathed. My advice? Before you reach for a bottle of Scotch or Pepto … [Read more...]
Arguing with the IRS: How the courts can help (Part 2)
Got a beef with the IRS? Want to fight the penalty they assessed? Then you need to rely on “authority” to come out a winner. I explained this in an article last month titled “Arguing with the IRS: You Need Tax Authority (Part 1)". In this issue I’ll explain the role of the courts when you take on Uncle Sam, and how they can help you beat the IRS. If you feel you’ve … [Read more...]