A prior IRS audit that did not result in any additional tax deficiency would not be a red flag for increasing your chance of another audit.
The three types of audits are field, office and correspondence. The field audit is the only audit where the IRS will come to your home or place of business.
Failure to file and fraudulent filings have NO statute of limitations.
The interest rate charged by the IRS on underpayments is the federal short-term rate plus 3%.
Larry will be assessed a late payment fee of 0.5% on the net amount of tax due not paid by the due date, with a 25% maximum. This penalty is in addition to the normal interest charge.
An estimated tax liability payment must be made when you apply for a tax filing extension on Form 4868, on or before April 15. Once the actual tax deficiency is calculated, a payment received that is 90% or less of the actual payment will be subject to a late-payment fee. Interest occurs on the tax due date, starting on April 15.
TaxesKeeping thorough records and knowing the penalties make this experience easier than you'd expect.
TaxesIt doesn't automatically mean an IRS agent will be ringing your doorbell. Here are the different types of IRS audits and how to handle them.
Managing WealthTo help you avoid a tax audit this year make sure you stay away from these ten red flags.
Financial AdvisorThere are several factors that may increase the risk of an audit, especially with high-net-worth clients.
Managing WealthIf you make $1 million or more, the IRS has its eyes on you. Here's what you can do about it.
TaxesDiscover how to get some extra time from the IRS, without paying a hefty penalty for the privilege.
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TaxesFill out this form to get a few more months to file your tax return. But remember, April 15 is still the payment due date if you owe taxes.
TaxesThese are the most common scenarios that can trigger the IRS to audit a tax return.