To put it succinctly, The IRS audits people to double-check their numbers and make sure their returns don’t show any inconsistencies. An audit is not a sinister move by the IRS to blackball you, but some people do try to purposefully cheat the system and that is...
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Audits
What you can expect from an EDD audit
If you’re a business owner, there are few things more frustrating than a notice you’re being audited. You have enough to worry about already without the detailed requirements an audit presents.Here in California, that audit notice will often come from the...
Do safe harbor provisions for an IRS payroll audit apply to you?
If the IRS determines that your contractors qualify as employees, your business could face fines and legal penalties. One way to avoid these penalties is qualifying for Section 530 relief, a "safe harbor" provision for employers of contractors. This "safe harbor" is a...
Know your rights during an IRS audit
Receiving notice that you have been selected for an Internal Revenue Service audit is not a cause for panic. You have rights as a taxpayer, even during an audit, and understanding those rights can help you better navigate the audit process.An IRS audit is an...
Handling An EDD Audit
When most people hear the term “audit,” they think of the IRS. They also think of a confusing process that can take months or years. In California, business owners need to be aware that an audit by the state Employment Development Department (EDD) can also...
Millennials and taxes: Avoid these three big mistakes
Taxes are complex. There is rarely a simple answer to a tax matter. However, one question often does have a simple answer: do I need to file taxes? Millennials are often struggle with this question. The wrong answer to this, and two other common errors, can cause...
Three things that could trigger an IRS audit
The Internal Revenue Service (IRS) cannot closely review every tax filing. As a result, there are a number of ways the agency determines which filings will warrant a closer review. To help filter out allegedly questionable returns, the agency often uses Compliance...
How business owners can prepare for IRS audits
As a business owner, you may probably cringe at the sight of a plain brown envelope marked with the Internal Revenue Service’s address, also marked with the phrase “official government business.” If you have received this envelope, chances are that...
Mistakes that could lead to an audit
Despite what may be believed in some circles, there is nothing inherently sinister about tax compliance audits. Indeed, being audited can be compared to a root canal or a colonoscopy, but it is supposed to be the federal government's way of ensuring that everyone is...
When you get the non-filing letter from the IRS
The IRS expects everyone to file an annual tax return, on Form 1040, 1040A or 1040EZ. If they have no record of receiving one of these forms from you, they will let you know with a Verification of Non-Filing Letter. This letter explains that they never received a...