What Auditors Look for When Examining a Business

Know what an IRS auditor looks for when examining your business and its records. If the IRS is auditing your small business, you should do two things: First, prepare for the audit. (For information on this, see Preparing for a Business Audit.) Second, learn what the IRS auditors are looking for when they examine your […]

Negligence Versus Tax Fraud: How Can the IRS Tell the Difference?

The difference between cheating on your taxes and negligently filing them, and how the IRS distinguishes between the two. It shouldn’t come as a shock to hear that it’s a crime to cheat on your taxes. In a recent year, however, only 2,472 Americans were convicted of tax crimes — 0.0022% of all taxpayers. This […]

8 Ways to Attract an IRS Audit

Math Errors: Take the time to make sure your calculations are correct all the way throughout your return. One thing IRS computers can do is add and subtract and too many math errors can indicate a sloppy return. Unreported Income: IRS computers match the various varieties of report income such as Form 1099s issued for […]