Georgia residents who are in business partnerships should be aware of regulations being proposed by the Internal Revenue Service regarding partnership audits. The agency is having a hearing that will provide taxpayers and their financial advisers the opportunity to voice questions about the rules.
There are several common mistakes that some Georgia residents make with their tax returns that could lead them to be targeted for audits. By avoiding these errors, taxpayers may reduce their chances of being selected for audits. If they are facing audits, they may want to get help instead of trying to represent themselves.
According to reports, the Internal Revenue service has announced that the amount of tax audits it normally conducts will be greatly reduced for the 2016 tax year due to the low number of IRS workers and budget cuts. In fact, the chances a taxpayer will be audited has dropped to less than one percent, which is less than one for every 100 taxpayers. While most Georgia taxpayers will consider this good news, some taxpayers may use the occasion to take advantage of the system. This means that the IRS must still conduct audits, so it is a good idea for every taxpayer to be prepared just in case they are among the small number of taxpayers to be audited.
Tax audits are down for the fifth straight year according to information from the Wall Street Journal. In fiscal year 2016, just .7 percent of returns were audited, which translates to about one audit for every 143 returns. That was the lowest volume of audits since 2003. Georgia residents and others in the highest tax bracket also saw a reduction in the number of returns audited.
When it comes to audits by the Internal Revenue Service, some Georgia taxpayers may fear that they will be audited. Forgetting to file certain IRS forms is a common way to trigger an audit.
Tax forms have all been mailed, and the deadline for filing starts to loom for many people. As you prepare to file your 2016 taxes, your goal is to limit your obligations to the government and maximize a refund if you are getting one. Every year, millions of American miss tax deductions that should reduce the amount they owe the government without realizing it.
Most Georgia residents who will be filing their 2016 federal income tax returns will not be audited. In fact, the Internal Revenue Service only audits around 1 percent of the tax returns that it receives. Despite the low chances of an IRS audit, audits are still a concern for some people, and it is important to be aware of the red flags that the IRS looks for.
Many people in Georgia may be getting ready to file their tax returns in January. Though the possibility of an IRS audit is a concern for a lot of people, the chances of actually getting audited are very slim. Because the IRS has fewer employees than it has ever had before, most audits are resolved through the mail.
Every year, a number of Georgia residents and companies receive letters from the Internal Revenue Service informing them that their tax returns are being audited. Though the prospect of an audit can be stressful, many people can resolve an audit easily by providing the IRS with the documentation that they need. If a taxpayer owns multiple businesses or lacks appropriate documentation to prove income and deductions, an IRS audit could be prolonged.
Retired Georgia residents have to file their federal income tax returns just like people that are still in the workforce. The Internal Revenue Service wants to know about income from retirement account distributions, investments, rental properties and even gambling winnings. If retirees doe not fill out their tax form correctly or has income information that raises a red flag, their tax form could be singled out for an audit.