Is the person providing services for my business an employee or independent contractor?
What are the advantages and disadvantages of C-Corporations, S-Corproations and Limited Liability Companies?
How can I deduct the business use of my personal vehicle?
I operate my business from my home. Can I take a deduction?
What documentation is required to substantiate this deduction?
1. Question: Does the IRS ever contact a tax payer or the tax preparer by email or phone to initiate an audit?
Answer: Should your account be selected for audit, you will be notified:
2. Question: Does filing an amended return affect the return selection process for an audit?
Answer: Selecting a return for audit does not always suggest that an error has been made; returns are selected using a variety of methods, including:
3. Question: How far back can the IRS go to audit my return?
Answer: The tax laws require you to retain all tax related documentation utilized to prepare your return, those records generally should be kept for three years from the date the tax return was filed. Our recommendation is to maintain these records for seven years.
If records are kept electronically, the IRS may request those in lieu of or in addition to other types of manual records. Contact your auditor to determine what can be accepted to ensure a software program is compatible with the IRS's.
4. Question: If I can’t pay my tax liability, can I make installment payments?
Answer: If you're financially unable to pay your tax debt immediately, you can make monthly payments through an installment agreement. As long as you pay your tax debt in full, you can reduce or eliminate your payment of penalties or interest, and avoid the fee associated with setting up the agreement.
Before applying for any payment agreement, you must file all required tax returns.
5. Question: Can I receive a tax refund if I am currently making payments under an installment agreement or payment plan for a prior year’s federal taxes?
Answer: No. A condition of your installment agreement is that the IRS will automatically apply any refund due to you against taxes you owe.
6. Question: I receive child support from my ex-spouse, is that money taxable?
Answer: No, for purposes of calculating the earned income credit, child support is not considered earned income.
7. Question: What are the best methods to notify the IRS of an address change?
Answer: The two recommended methods are:
|Tax return||Providing the new address on your tax return|
|IRS form||Completing Form 8822, Change of Address or Form 8822-B, Change of Address or Responsible Party - Business|
8. Question: Do I have to pay taxes on my Social Security benefits?
Answer: Social Security benefits include monthly retirement, survivor and disability benefits. They do not include supplemental security income (SSI) payments, which are not taxable. The amount of Social Security benefits that must be included on your income tax return and used to calculate your income tax liability depends on the total amount of your income and benefits for the taxable year.
To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of:
The base amount for your filing status is:
Please contact our firm with questions regarding the taxability of your Social Security benefits.
9. Question: What other scams can I avoid?
Answer: Fraud involving IRS impersonators spikes during tax season. Remember:
Report fraud to the IRS at 800-366-4484 and at treasury.gov/tigta/contact_report_scam.shtml.