Although the Internal Revenue Service might send an audit letter to a California resident's home, that does not necessarily mean the taxpayer did anything wrong. The IRS could request proof to substantiate deductions, and the taxpayer may present receipts. Most...
Complying with tax laws is a complicated task, and errors can be made. Due to slowdowns and disruptions in processing tax returns in recent years, both the IRS and the California Franchise Tax Board have increased collection and enforcement actions to catch up with...
The IRS conducts tax audits in California and all around the United States. On average, the IRS audits four out of every 1000 taxpayers. If you're chosen for an audit, you might get an IRS field audit. Here are a few things to keep in mind. The basics of an IRS field...
The Inflation Protection Act has set aside a whopping 45.6 billion dollars to hire a slew of new IRS agents. How will this affect companies and organizations in California? Some believe the most impactful change this legislation will bring is to drastically increase...
In a previous blog post we discussed whether high-income and high-asset individuals really face a greater audit risk than taxpayers of normal means. We concluded that individuals reporting eight-figure incomes and greater actually face the highest risk of a tax audit. However, individuals reporting income in the single-digit millions or high six-figures also face a more pronounced audit risk. Unfortunately,…
For an array of reasons, some taxpayers have not filed taxes in years. Motivations for this approach to taxes vary, but some taxpayers will fail to file because they don’t think they earn enough money for the IRS or California Franchise Tax Board to notice. Other taxpayers, in particular self-employed individuals, may have failed to realize that their income was…
When taxpayers begin to suspect that they may have made simple or complex tax errors on past tax returns, one of the first things they want to know is whether the full range of their mistakes can be audited by the IRS, the California Franchise Tax Board, or other tax agencies. Taxpayers who realize that the IRS can look back…
At , we recognize that there are often significant misconceptions about the tax system and the tax agencies’ enforcement of laws. People may take comfort or even find horror in the stories spread among family and friends. However, people are often surprisingly hesitant to ask questions about the truth of widely-held beliefs regarding tax enforcement. The attorneys of have prepared…
For weeks you stressed over getting your income tax and report of foreign accounts in order. You spent time tracking down W-2s, various 1099s, and other statements of income. You also spent time ensuring that the tax positions you or your accountant staked out were compliant with tax law and well-supported by your books and records. You filed your taxes…
For investors, entrepreneurs, and other business-minded individuals the Wall Street Journal is the gold standard for business and financial news. Thus, when the Wall Street Journal warns investors about potential civil or criminal exposure in any investment or asset protection context, it is important for all impacted or associated parties to take notice, perform a compliance review, and take any…