Tax problems? tax controversy representation and consulting for clients and tax firms
The article, It’s here: Form 1099-K business income matching , is called “Red Letters.” In 2013, the IRS started using Form 1099-K that reports merchant card transactions (like debit and credit cards) to match against business returns. This matching program was the start of my problems for taxpayers. The article explains the IRS compliance programs using Form 1099-K and what to do if you get a 1099-K IRS matching notice or audit.
The IRS likes to audit small businesses. Here are 8 hot issues that the IRS is focusing on in small business audits : Eight Small Business IRS Audit Areas to Watch Through 2013
This article, More is Less: Tax Gap Study Shows Increased IRS Efforts Yielded Lower-than-Expected Returns, shows the increase in compliance activity to close the tax gap. The tax gap is the amount of tax dollars lost to the US Treasury each year due to taxpayer noncompliance. The tax gap is almost a ½ a trillion dollars a year. The IRS is tasked with closing the tax gap.
This article, The Notice Boom: New IRS compliance practices mean big changes for tax practitioners , covers the IRS new compliance strategy: coverage by notice. The reasons why we are seeing a 570% increase in the number of IRS notices.
Here is my Accounting Today article on the simple IRS payment plans – the 36-month plan (guaranteed installment agreement), 72-month plan (streamlined installment agreement), and the 84-month payment plan (84-month pilot program for those who owe between $50,000-$100,000).
My Accounting Today article on the chances of an IRS audit. There are certain types of taxpayers and taxpayer profiles that stand a higher chance. Here is the data.
Jim is regularly published in various tax industry publications and news articles. Most of the articles from Jim are listed below.
My Accounting Today article on the continuing trials and tribulations of Wesley Snipes and the IRS. Wesley Snipes and his counsel missed a very important element of the offer in compromise program: the dissipated asset rule. The moral of the story: you can shed your assets and then try to not put them in the offer amount as part of an OIC. OIC offer amounts is your “reasonable collection potential” – the formula is your net equity in assets (including any assets dissipated three years prior to the OIC application) plus amount that would be paid if you were to have an installment agreement with the IRS. As you can expect, the OIC went south after the IRS asked about the dissipated assets.
If you are considering an IRS offer in compromise, here are 14 basic principles you need to know. My Accounting Today article highlights many of the details and answers the important question: do you qualify for an OIC?
Four taxpayer profiles that are prime targets for IRS audits. Here is where some prevention and extra due diligence may go along way if the return ever comes under audit. My AICPA CPA Insider article analyzes the IRS interest in the four taxpayer profiles and the extra due diligence you can perform before filing to prevent an IRS audit problem.
