Filing taxes is often a frustrating process. This frustration can grow exponentially in the event that a tax return triggers an audit by the Internal Revenue Service (IRS). You can mitigate the risk of becoming the target of an audit by becoming familiar with common triggers.
If you sell oil in Texas, you likely need to pay the Texas Automotive Oil Sales Fee. The application for the Automotive Oil Sales Fee states that everyone that either manufacturers and sells automotive oil in the state, imports oil into the state for sale, use or consumption or sells more than 25,000 gallons of automotive oil annually and owns a warehouse or distribution center in the state must file an Application for the Automotive Oil Sales Fee Questionnaire.
We are now in the thick of the Atlantic hurricane season, something many of us in Texas have to be concerned about, particularly if we own property along the Gulf. Of course, summer also frequently brings severe thunderstorms to our state, complete with damaging hail, straight-line winds, tornadoes and devastating lightning strikes.
In many cases, if someone is told that they will be audited, it can lead to a lot of stress. Not only was the whole process of filing taxes stressful and tedious, but now you have to go through all of the numbers again and be able to prove that they are accurate. If you get a notice of an audit, you might ask yourself “What did I do wrong?” In some cases, an audit is just a matter of chance. In other cases, though, some discrepancy may have triggered some questions from the IRS.
The earned income tax credit (EITC) is supposed to help people with low income, especially those with children, by providing a refundable tax credit.In recent years, however, the IRS has stepped up audits of returns that claim the EITC, after critics contended that the credit was awarded too freely.In this post, we will use a Q & A format to update you on how a new law will delay refunds on returns that claim the EITC.
Audits by the taxman are scary things. No Texas business or resident likes the idea of facing off with the IRS. However, what readers may be surprised to learn is that the IRS doesn't much care for audits, either. Its own studies reveal that audits are time consuming for the agency and don't yield as much in revenue as might be desired.
"Follow the money" is a well-worn cliché of political life.
David Bowie's recent death has revived interest in his work, including the classic song "Changes."
In the first part of this post, we noted the function of the W-2 form for reporting income from wages. With tax filing season now underway, now is the time to look for this form from your employer, if you have employee status.
It is of course important to keep good records for tax compliance purposes. But what kinds of records should you keep and for how long?