Independent Contractor Classification The classification of workers as an independent contractor is often misused by many small businesses. In order to avoid some of the costs related to having employees, such as payroll taxes, worker’s compensation, unemployment taxes, and employee benefits, some businesses will attempt to classify workers as independent contractors, but often times these
IRS Audits
Will Your Business Be Audited?
Will your small business be audited? If you want to send a small business owner’s blood pressure soaring just tell them they’re being audited. Even if they have all their documentation and they’re ready to defend deductions and support their income, the audit process is still enough to drive people crazy. So will get audited this
Deduct With Care: These Write-Offs Could Lead to Audits
As a tax law firm we deal with IRS and Franchise Tax Board audits on a daily basis. As we review tax returns and prepare our clients for the audit process, one question comes to mind during many of these interviews: “What was their tax attorney thinking?” Deduct With Care: These Write-Offs Could Lead to
Taxpayer’s Bill of Rights
Taxpayer’s Bill of Rights Have you heard about the Taxpayer’s Bill of Rights? For years the IRS has published different procedures, processes and taxpayer expectations throughout different publications its offered to the public. But just like the Bill of Rights in our constitution, the agency has boiled it all down to ten overarching taxpayer right’s and
Tips to Avoid Audits
Tips to Avoid Audits Principal Attorney Ronson J. Shamoun gives a few tips on how to avoid an audit. Overall, we generally recommend that you retain counsel to guide you through the audit process. Although there are costs associated with hiring representation, they are normally worth the investment as it helps to minimize your overall
Going Solo: How to Represent Yourself in an IRS Audit
Being audited by the IRS is one of the greatest fears that the average American taxpayer can think of. However, most people don’t realize that many audits can be easily resolved, and can result in no additional taxes. In the event your tax return is audited, it is important to realize that you do have
IRS Audit Red Flags
The IRS audits only slightly more than 1% of all individual tax returns annually. However, the chances of being audited increase depending upon various factors, including your income level. This blog post will discuss the top red flags that trigger an IRS audit so as to warn taxpayers of situations that increase the chances of
IRS Audit Reconsideration
The Internal Revenue Service (IRS) has the power to audit a taxpayer, and typically does so in a limited number of circumstances. The IRS will often audit high net worth individuals, taxpayers that claim huge charitable contributions, underreporting of income on the relevant tax form, taxpayers that claim huge business losses year after year, or
Understanding an IRS Audit
An IRS audit is a review of a business or individual’s tax return to ensure that everything was reported correctly in compliance with applicable tax laws. By law, the taxpayer is only required to pay the exact amount of tax owed, no less and no more. Consequently, if a taxpayer incorrectly reports his or her
IRS Income Tax Audits Explained
IRS Income Tax Audits IRS income tax audits explained. An income tax audit is an examination of a tax return. Depending on the nature and scope of the audit, an IRS examiner may look at just a few items on your return or they may look at your return in its entirety. If they determine