Blog

10 YEARS. I would like to able say that, but it is a little more complicated than that. The term the IRS uses is CSED (Collection Statute Expiration Date). 10 years from the date of assessment, not the date you filed. This means the 10 year period starts the date the IRS has your tax […]

This is a somewhat impossible question to answer. It depends on your situation. If you owe less than $5,000, you will be below the radar for purposes of having the IRS file a lien against your property, wages or bank accounts. As this is the first step in the IRS’ collection procedure, a levy is […]

From the IRS website: Selection for an audit does not always suggest there’s a problem. The IRS uses several different methods: Random selection and computer screening – sometimes returns are selected based solely on a statistical formula. We compare your tax return against “norms” for similar returns. We develop these “norms” from audits of a statistically […]

If you pay your employees in cash and do not document this expense and report it to the IRS and FTB, you will not be able to report it as a deductible business expense on your business tax return or the Schedule C on your 1040 tax return. While many see this as a way […]

The cash issue has always been an interesting one. The IRS hates it. If you are paid in cash and put it in the bank, the bank reports the interest earned at the end of the year to the IRS. This puts the IRS on notice that you exist, but that they are not receiving […]

Anyone can sue anyone, but the IRS does not need to in order to collect the amounts due them for income tax and the other tax collections it administers. The IRS has the following collection powers: Liens Levies Wage garnishments Property seizures The IRS may intercept your federal or state refund None of the above […]

You go to the ATM to get some case and are informed there is no money available in your account. You go inside and are informed that the IRS has levied your bank account. Now is the time to move quickly. Request a copy of the IRS levy immediately. You need to make sure that […]

From the IRS website: Generally, the IRS can include returns filed within the last three years in an audit. If the IRS identifies a substantial error, it may add additional years. It usually doesn’t go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they […]

The following is a quote from the IRSA website: How long does an audit take? The length varies depending on the type of audit; the complexity of the issues; the availability of information requested; the availability of both parties for scheduling meetings; and your agreement or disagreement with the findings. Not very helpful. My experience […]

Audits are document intensive. So are tax attorneys. You need to provide documentary proof that certain incomes and expenses were made or not made. You need to be able to know exactly how much to say to satisfy the auditor without opening the audit up to ever increasing questions. Auditors are on fishing expeditions to […]