Category: Taxes & IRS Audits - Page 2 - Law Offices of Daily & Toups

Call Us For Free Consultation





Tax Court: How the IRS Handles ‘Regular Cases’

If you want to contest in tax court an audit outcome of over $50,000 for any one year, your case will be considered a regular case. Most people hire a tax pro to represent them when arguing a regular case. A Trial in Tax Court If your case reaches the trial stage, the judge may not be that patient with a taxpayer representing him- or herself. Strict court procedures and rules of evidence apply. After the trial, you...

Continue reading

Should You File a Tax Return While Under Audit?

Here’s one way to minimize the expansion of your audit: Don’t file a tax return while an office (read here) or field (read here) audit is in progress. This rule does not apply if the IRS is conducting a correspondence audit (read here). If you file your return during an office or field audit, the audit is likely to be expanded to include that return. When April 15 rolls around, file a request for an extension to October...

Continue reading

Reviewing the Automated Adjustment Notice

Money magazine estimates that between 25% and 50% of automated adjustment notices are erroneous. A common IRS mistake is not finding an income item that was reported elsewhere on the tax return. This can result in incorrectly misreported income, as illustrated below: EXAMPLE: Hilary reported $457 of money market fund income as interest. The financial institution labeled it as dividends in its report to the IRS. While dividends are listed right after interest on the IRS form, the...

Continue reading