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Five Steps to Take if You’re Audited
Five Steps to Take if You’re Audited Getting audited is no one’s idea of a good time, yet you can get through it if you take the right approach. Getting audited is no one’s idea of a good time, yet you can minimize the stress if you take the right approach. Step 1: Understand why and when. While it’s possible you were selected randomly, it’s more likely you were selected for a specific reason. One example might be if your deductions for charitable donations or business expenses were greater than is typical for your income or profession. Before proceeding, make sure
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Your next audit may be an “audit lite” – The IRS is handling more reviews with form letters
Your next audit may be an “audit lite” – The IRS is handling more reviews with form letters In-person audits with an IRS agent are becoming more uncommon. The IRS is instead handling their reviews through form letters called correspondence audits. Here is what you need to know. In-person audits with an IRS agent are becoming more uncommon. The IRS is instead handling many routine reviews through form letters called correspondence audits. These IRS letters are a kind of “audit lite” the agency uses to ask for clarification and justification of specific deductions on your tax return. Common issues that
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To Amend or Not Amend? – Is it always a good idea to amend your tax return?
To Amend or Not Amend? – Is it always a good idea to amend your tax return? Oops. You find an error or omission on last year’s tax return. What should you do? Is it always a good idea to file an amended tax return? Here are some things to consider. To Amend or Not Amend? There’s usually an element of relief after your annual tax return has been filed. But what do you do if you find an error on your tax return? Should you always file an amended return? Here are some things to consider. Errors in the
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Avoid Name Mismatch Audits
Avoid Name Mismatch Audits If you recently changed your name due to marriage or divorce, do not get caught in the nightmare of a rejected or changed tax return by the IRS. Avoid Name Mismatch Audits Audits: If you were married, divorced, or changed your name for any reason during the past year, do not forget to file to change your name prior to preparing your 2016 tax return. The IRS automatically conducts a name match on the first few letters of your last name. If the name on your tax return does not match the name on file at
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IRS Automated Audit Programs Working Well – Programs aid in $2.9 Trillion 2015 tax revenue
IRS Automated Audit Programs Working Well – Programs aid in $2.9 Trillion 2015 tax revenue Each year the IRS releases a Data Book that recaps Internal Revenue Service activities for the prior fiscal year ending in September. The 2015 Data Book was recently published which recaps the 2014 tax year. Here is what you need to know: Each year the IRS releases a Data Book that recaps Internal Revenue Service activities for the prior fiscal year ending in September. The 2015 Data Book was recently published which recaps the 2014 tax year. Here is what you need to know: The
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Chances of Audit Continue to Drop – What you need to know
Chances of Audit Continue to Drop – What you need to know The IRS continues to use their audit department as a poster child to try to get more funding. The result can be seen in their declining audit rates. But do not be fooled. Here are the most recent IRS audit statistics for your review. You can be audited the later date of either three years after the filing deadline of your tax return or when you actually filed your tax return. However, there are two main exceptions to this rule that can extend the risk of being audited;
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Tax Return Review Hints
Tax Return Review Hints Prior to e-filing or mailing your tax return, you will want to spend some time reviewing your information for accuracy. Here are some tips. Prior to e-filing your tax return, you will want to check it for accuracy. Outlined here is a checklist of things to review on your tax return. The Basics Confirm the basics for you, your spouse and your dependents: Name, address, Social Security Numbers and proper identification of dependents that are under age 17 Double check filing status Confirm your income amount. Start with line 22 total income. Does the amount seem
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File That Final Tax Return – Five reasons death and a tax return makes sense
File That Final Tax Return – Five reasons death and a tax return makes sense Often when a loved one dies, a final tax return is not required. Here are five good reasons to consider filing the tax return even when one is not needed. If a parent or loved one died this past year, you may wish to consider filing a final tax return even if not technically required to do so. Background When a deceased’s estate is more than the federal threshold of $5.45 million in 2016, an estate tax return is required. This limit requires only a
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Missing a Form? Not an Excuse.
Missing a Form? Not an Excuse. At the start of each year our mail boxes begin to fill up with information tax forms. They include W-2s, 1098s, 1099s and the new 1095-A. If you fail to receive a form, you are still liable for the tax it creates. Here are some tips to avoid this possible audit risk.
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Lifestyle Audits. A thing of the past?
Lifestyle Audits. A thing of the past? In the past if the IRS thought your lifestyle could not be supported by the income reported on your tax return, they could audit you. Is this practice now a thing of the past?
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