Georgia entrepreneurs may be interested to learn that one business owner came out of an audit with more than $100,000 from the IRS. An audit does not necessarily mean that the IRS will find something in the government's favor. In this particular case, the man had hired a new tax team and learned that he could have been entitled to refunds of approximately $102,000 from the IRS over the past few years. When he filed amended returns, the IRS responded with an audit.
Georgia taxpayers may be interested in learning more about critical errors that could place them in a compromising position with the IRS. Generally speaking, the IRS has up to three years to audit a taxpayer after a return is filed. If the taxpayer underreports their income by at least 25 percent, the IRS may extend the audit period to six years. The same rule applies to taxpayers who have understated at least $5,000 in foreign income.
Georgia business owners may be interested in some information about different types of strategies they might employ to be successful during a tax audit. Due to the importance of doing well during these audits, it is crucial that the taxpayer do everything they can to avoid further penalties.
If you have been notified by the Internal Revenue Service about unpaid tax liabilities, we may be able to help you find the solution you need to settle those debts. Serving clients throughout the state of Georgia, we can suggest a variety of options including an offer in compromise in which we negotiate with the IRS to accept a partial settlement..
Owners of small businesses in Georgia may be interested in some information on what the Internal Revenue Service is trying to find when conducting a business tax audit. Depending on what its analysis shows, there could be serious issues for the business owner.
For Georgia businesses, a tax audit can be a difficult experience. However, there are some ways that a company might try to avoid attracting undue attention from tax authorities.
A Georgia tax return may be selected for an audit based on a number of criteria. While some are selected randomly for examination, others are chosen based on the information provided in the associated documentation. In some cases, a return is selected for audit because of transactions conducted with others who have had their returns audited. Those who have had their returns selected for audit will be notified either by phone or by mail. In either case, a letter will be sent to confirm the audit.
For Georgia taxpayers, an IRS audit is often one of their greatest fears, after paying the taxes themselves. There are some tips that can hopefully help reduce the chance of an audit and the problems that come with it.
Georgia taxpayers may wish to think twice before attending an IRS audit alone. A problem with audits is that the taxpayer may be asked to answer questions that they would rather choose to ignore. And every word spoken at an audit may ultimately be used to determine whether back taxes are owed or underreporting of income has occurred.