There’s only one thing that everyone loves more than paying taxes—being audited.
There are a range of things that could lead the Internal Revenue Service to decide to audit a given tax return. Among these are concerns related to credits claimed in the return. One type of tax credit that is involved in quite a few audits here in the U.S. is the earned income tax credit.
With the tax deadline coming up, many people have already finished their taxes or are just about to do so. A person can feel an awful lot of relief after finishing filing their taxes; it can feel good to be done with the process for yet another year. In the midst of such relief though, it can be important to remember that getting one’s taxes done doesn’t necessarily mean one is free from thinking of tax-related matters for awhile. Important tax-connected decisions can come up for a person after filing.
The Internal Revenue Service only audits approximately 1 percent of all individual tax returns the agency receives each year, but there are certain red flags that could make yours more likely to be chosen.
Among the deductions individuals can claim on their taxes are deductions for automobile operating costs related to certain activities. Among the car travel a driver might be able to deduct such costs in relation to are: travel related to service to charities, travel for moving purposes, travel for medical purposes and business travel.
When a person is in their retirement years, certain things can have big impacts. One of these is what actions they take when it comes to their retirement accounts. Among the implications such conduct can end up having are tax implications.
One thing that can have very big impacts on a small business when it is audited by the Internal Revenue Service is how prepared it is going into the audit.
A common desire a person can have upon discovering they are being audited by the Internal Revenue Service is a desire to get the process over and done with as quickly as they can. This is a natural response to a stressful situation, which audits most certainly can be.
The end of a federal tax audit can be a time of many important decisions.
A person's income level has considerable implications when it comes to tax issues. For one, it can influence how likely they are to be subjected to an audit by the Internal Revenue Service.