Frequent readers of this blog know that we have maintained - ad nauseum, I am sure, for some – that all small businesses should incorporate or operate as an LLC in part because they are less likely to undergo IRS scrutiny. Well, if you can believe the Government Accountability Office GAO), this may all be about to change. WebCPA [...]
Tags: C Corporations · IRS Audits · S Corporations · Self-Employed Taxpayers · Unfiled Returns
Listening to tax blogger Robert Flach explain his opposition to the electronic filing of tax returns and the general use of tax preparation software is like talking to a time traveller from the year of the Hula Hoop and the Slinky. Robert seems to be wholly unaware that America has been steadily moving toward a paperless society for more than a decade now. From the [...]
Tags: IRS procedure · Regulation of Tax Preparers · Unfiled Returns
Ryan J. Donmoyer of Bloomberg BusinessWeek reports in Americans Seeking Reward Money Inform IRS on Others that: Americans seeking reward money are turning in neighbors, clients and employers they suspect of cheating on taxes to the IRS at a rate of nearly eight per day, the director of the agency’s whistleblower program said. Steve Whitlock, the [...]
Tags: Back Taxes · Tax Crimes · Unfiled Returns
WebCPA reports that the IRS has issued these 6 tips when choosing a tax return preparer: Be cautious of tax preparers who claim they can obtain larger refunds than other preparers. Avoid preparers who base their fee on a percentage of the refund. Use a reputable tax professional who signs the tax return and provides a [...]
Tags: Deductible Expenses · Regulation of Tax Preparers · Unfiled Returns
Here is the full text of IR-2010-24, dated March 2, 2010: Washington — Unclaimed refunds totaling more than $1.3 billion are awaiting nearly 1.4 million people who did not file a federal income tax return for 2006, the Internal Revenue Service announced today. However, to collect the money, a return for 2006 must be filed [...]
Tags: IRS procedure · Unfiled Returns
Roger Russell, Senior Editor of Accounting Today reports that the IRS will be targeting incompetent and fraudulent tax preparers and their clients in 2010 (emphasis added): Tax return preparers who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients are a major concern for the Internal Revenue [...]
Tags: Tax Crimes · Unfiled Returns
Each year the IRS publishes examples of its non-filer enforcement actions. Below are the examples for fiscal year 2010. They are excerpts from public record documents on file in the court records in the judicial district in which the cases were prosecuted. Mississippi Businessman Sentenced for Failing to File Tax Returns and Criminal Contempt On [...]
Tags: Tax Crimes · Unfiled Returns
