As the April 15th deadline for filing 2018 income tax returns draws near, practitioners may encounter some clients who don't have cash to pay the balance due on their returns. Clients can avoid penalties but not interest if they can get an extension of time to pay from IRS. Financially distressed clients may be able…
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IRS Tax Audits of Millionaires & Large Businesses are Declining
The Internal Revenue Service is subjecting a relatively small percentage of wealthy taxpayers to tax audits, and less than half of the biggest corporations in the U.S. are now being audited, according to a new report. The report, from Syracuse University’s Transactional Records Access Records Clearinghouse, or TRAC, found that 97 out of every 100…
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IRS’ 2019 ‘Dirty Dozen’ Tax Scams Highlights Inflating Deductions & Credits
The Internal Revenue Service on March 12, 2019 warned taxpayers in IR-2019-36 to avoid falsely inflating deductions or credits on tax returns as part of its 2019 list of the “Dirty Dozen” tax scams.Taxpayers should watch for areas frequently targeted by unscrupulous tax preparers include overstating deductions such as charitable contributions, medical expenses, padding business expenses or…
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Budget Cuts Leading to Fewer IRS Investigations
According to researchers and former government auditors, budget cuts within the Internal Revenue Service (IRS), which have cut enforcement staff by a third, may be responsible for the drop in the number of tax evasion cases pursued in recent years. In 2017, 795 cases were brought be the IRS’ criminal division, representing a drop of…
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