Frequently Asked Tax Audit Questions
Slogging through an audit can be a life-altering experience. In psychology tests, the stress of being audited is ranked just below the death of a family member. You can ease a lot of the pain by getting a good Washington DC tax attorney to represent you. Here are some answers to commonly asked questions about tax audits, IRS disputes, and other legal tax questions.
Question: It seems like more of my friends and coworkers are getting audited lately. Am I hanging out with the wrong crowd, or are there really more audits happening in the last few years?
Answer: According to most reports, there are more personal tax audits taking place every year than there ever have been before in the history of the IRS. Since 2003, the percentage of tax filers who get audited has been steadily rising. The IRS claims this is due to a higher frequency of errors that are made when people file individual tax returns with tax software programs instead cialis cheap of going to a CPA or tax accountant. If you file your taxes with a CPA or accountant, you are less likely to be audited than if you file Brand Viagra them yourself using tax accounting software or if you don’t e-file.
Question: I have a side business that hasn’t been making money for the last 4 years. Can I keep deducting for it?
Answer: You need to be aware that if you report business losses using a Schedule C you are more likely to be audited. The IRS watches for a supposed businesses that might be masking “fake” businesses losses, such as hobbies or travel expenses. If you have a hobby that you sometimes make money with (making jewelry, constructing train sets, etc.) just be careful that you only deduct for legitimate business expenses. You can’t deduct for hobbies. If your business falls on the borderline between these, watch out. You may flag an audit.
Question: I just got notified that I’m getting audited. Should I go to a regular attorney for this, or to my accountant?
Answer: Go straight to a local, Washington DC tax attorney, who specializes in tax accounting law. They can represent you the best and minimize cialis order online the bumpy road ahead.
Question: I heard from my uncle Gerald that I can deduct certain travel and entertainment expenses, but my accountant thinks differently. What should I do?
Answer: Uncle Gerald may not have been caught yet, but when he does he’ll be singing a different tune. Stick to the advice of your accountant, and be careful that every business expense you claim is legitimate.
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