IRS Audit Notices The number of IRS audits and IRS Audit Notices actually went down in 2015-of course that is of little comfort to the people coming into our tax law offices in San Diego, El Cajon and Orange County. The tax agency expects to complete approximately 1-million audits this year—which is down almost 400,000
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What to Expect From a Tax Audit
Tax Audit “What to expect from a tax audit?” It’s the most common question we’re asked regarding audit notices when people come to our tax law offices in San Diego and Orange County. The letters typically arrive without warning and it catches taxpayers off-guard. In this post we’ll try to dispel some myths and explain
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
SBOE: Why am I Being Audited?
SBOE: Why am I Being Audited? A government agency that business owners and operators are likely to be familiar with, but which may be wholly unknown to the average taxpayer, is the California State Board of Equalization. The State Board or BOE, as it is often called, has a variety of responsibilities which include monitoring
California Residency Audit
A person’s “residence” under California law is the key to understanding their state income tax liability. For this reason, the California Franchise Tax Board (FTB) conducts residency audits that will determine a person’s residency called a California Residency Audit. Outcomes of a California Residency Audit Generally, three outcomes are possible; a taxpayer may be found
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
Franchise Tax Board Audits
The Franchise Tax Board of California (FTB) is like any taxing entity in that it ensures taxpayers compliance through the use of audits. An FTB audit is a formal inspection of your books and records in connection with your personal or business tax returns. The purpose of an audit is to ensure that you as
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
The Four Types of Tax Audits
Four Types of Tax Audits and Tax Compliance. Nothing is surer to elicit feelings of panic than receipt of a letter from the IRS and for good reason. Tax issues and penalties can have harsh and sometimes long-lasting impacts on an individual or business’s financial health. While some letters or notices aren’t cause for