___________________________________________________________I hope this issue of the Tax Reduction Letter finds you and your family in good health. Warmest good wishes at this difficult time from all of us at the Bradford Tax Institute.___________________________________________________________ Who’s afraid of the big bad IRS? Not me… at least not until after July 15 of … [Read more...]
Audits
Sorted by Date
Auditor Claims It’s Illegal for Parent to Employ His 11-Year-Old
Do you employ your children to work in your business? This can be a very smart move for several tax-related reasons. But be warned. When junior goes to work for you, you’d better have answers ready to pointed questions asked by the Department of Labor (DOL) and/or the IRS. For example, a DOL auditor might question your claim and decide it’s illegal for you to employ … [Read more...]
New Partnership Audit Procedures For 2019
Howdy partner! If you run your business as a partnership, or an LLC taxed as a partnership, there are some important things you need to know. For starters, you should be aware that Congress changed the IRS procedures for auditing partnerships. These new procedures take effect beginning with your 2018 partnership tax return. Under the new rules, an audit can lead to a … [Read more...]
How Corporations Reduce IRS Audits of Home-Office Deductions
Are you paranoid that your home-office deduction will invite an IRS audit? Well, you are not alone. Countless taxpayers fail to take advantage of a big deduction that they’re entitled to because they’re afraid of Uncle Sam. The fact of the matter is… We don’t consider the home-office deduction to be an audit flag. To get the whole story about a proven step you can … [Read more...]
The IRS Audit Is Wrong on First and Last Stop Rule
Despite what you may think, IRS examiners are only human. This means they can (and often do!) make mistakes. In this issue of the Tax Reduction Letter we’ll take a look at a case where the IRS examiner mistakenly applied the “first and last stop” business-commuting rule. Yes. The IRS blew it, but the taxpayer’s CPA saved the day by tapping into the Bradford Tax … [Read more...]