From the Tax Law Offices of David W. Klasing - 3 More Reasons the IRS Might Choose You or Your Business for a Tax Audit
IRVINE, Calif., Jan. 21, 2020 /PRNewswire/ -- The IRS audits around 1 million individual and corporate tax returns every year, and no taxpayer is too small ? or too successful ? to be targeted. From small family businesses, to celebrities, politicians, and Fortune 500 companies, no one escapes the IRS' microscope.
The IRS finds "badges of fraud" when processing your tax return. The IRS receives information that sets off alarm bells that indicate tax evasion ? for instance, information about an undeclared foreign bank account. This sort of data could come from a foreign bank or financial service that you use, compelled by FATCA or a summons; from a public source of information; or even from a tax whistleblower hoping for a reward. Relatedly, Your tax return could score poorly on the IRS' Discriminant Inventory Function System (DIF), indicating potential fraud and thus triggering an audit ? or a criminal tax investigation.
You operate a cash-intensive business. Cash has been historically used to mask tax evasion, therefore cash-intensive businesses (such as pawn shops and restaurants) endure intense IRS scrutiny.
You earn a high salary or are a high net worth individual. The higher your earnings the more likely you are to be impacted by complex tax regulations ? and in turn, the more likely you are to be audited by the IRS.
Here are three more reasons to be worried about a federal tax audit this year;
You didn't report your Goldmoney holdings. You should report Goldmoney holdings to the IRS if (1) you made cash transactions above $10,000, which must be reported on Form 8300 (Report of Cash Payments Over $10,000 Received in a Trade or Business); or (2) if your account meets FBAR reporting requirements, discussed in greater detail here. Failure to report income or financial accounts is a glaring badge of fraud.
You claimed large charitable tax deductions. If your charitable deductions are higher than average the IRS is certain to take notice.
Serve Robotics Inc. (the "Company" or "Serve"), a leading autonomous sidewalk delivery company, today announced the pricing of its underwritten public offering of 10,000,000 shares of common stock at a price to the public of $4.00 per share, for...
NexDrive, powered by NAPA, is proud to announce its participation as the official presenter partner of the Montreal Electric Vehicle Show 2024, to be held from April 19 to 21. This collaboration confirms NexDrive's commitment to the electrification...
SkyWater Technology , the trusted technology realization partner, today announced that it intends to report its fiscal first quarter 2024 financial results following the close of the market on Wednesday, May 8, 2024. The same afternoon, management...
The Honourable Pascale St-Onge, Minister of Canadian Heritage, will make an important announcement to promote economic growth for workers. The announcement will be followed by a brief discussion with agricultural workers and an official photo...