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Category: Audits

Top three triggers for an IRS audit

There are many potential red flags on your tax return. Most of us know that the Earned Income Tax Credit is something that can provoke an audit. We’ve also talked about lifestyle triggers; buying or writing off luxury items such as sports cars and first-class international airfare when your income […]

Audits

Can I write off my first-class plane ticket?

Anyone who’s ever flown first class to Europe knows that it makes a difference. When you are gastronomically pampered with a five-course French meal, including a cheese selection and a buttery croissant, that is also expertly paired with a 68-degree Bordeaux or bubbly Comtes Grand Cru AND you get to […]

Audits

What is a “lifestyle trigger” for the IRS?

Essentially a lifestyle is triggered when a person’s assets do not match their reported income. Through the lens of the IRS, the thinking goes something like this: If you own a mansion, a second or third vacation property, an expensive car, and a personal jet, it seems unlikely that your […]

Audits

Who can be a tax preparer?

While those who work in tax preparation are well-versed in this area, many people who go to a tax preparer are unaware of the differences. This post seeks to bring clarity to the different levels of education and certification a tax preparer may have. Anyone can call themselves a tax […]

Audits

5 surprising mistakes tax preparers make

Tax preparers, while being ever diligent, but still human, are prone to mistakes. When tax season hits the long hours and intense workload can increase the chances of an oversight. No one wants to make a mistake, especially on a tax return. While filing status is significant, other oversights or […]

Audits

What exactly is intent?

Intention, more times than not, is a “catch-all” criminal charge. Why? Because you do not have to prove someone actually DID something, only that they were going to do something, or acted with intention. So, the intent is not the actual doing of something, it is the mental preparation to […]

Audits

Gauging your risk of a tax audit

The average taxpayer is generally at low risk of getting audited by the IRS, but certain actions and circumstances can increase your chances of having to undergo one. According to an article by NerdWallet, some reasons that may make the IRS more likely to audit you include: Claiming too many business […]

Audits

EITC audits: What tax preparers should know

The earned income tax credit (EITC) is one of the federal government’s largest anti-poverty programs. It can also be a source of headaches and possible penalties for professional tax preparers. Geared toward the working poor, the EITC program offers credits totaling nearly $60 billion each year. The program helps nearly […]

Audits

Tax issues relating to investments could trigger audits

Seeing money as a tool rather than a reward can often help Texas residents increase their wealth. The notion that spending money to make money rings true for many people, especially those who choose to invest. However, while investments can certainly prove profitable for investors, it is also possible for […]

Audits