Making it through an IRS audit is stressful and anxiety ridden, but for many, it is not the end of the road in dealing with the IRS. Many IRS audits result in balances due. Here are my responses to great questions from a reader about dealing with IRS collections after the audit. I just finished [...]
Audits
Have you reported all of your income to the IRS? If you are being audited by the IRS, be prepared. Almost every IRS auditor is going to want to investigate whether you have reported all of your income on your tax return. To do this, an IRS audit will conduct what is known as a [...]
Bankruptcy is a powerful tool in solving IRS problems – but can it stop the IRS from auditing you? A centerpiece of bankruptcy law is the concept of an “automatic stay.” The automatic stay stops creditors from calling and writing to enforce or collect a debt from you. The “stay” on your creditors – including the IRS [...]
Can you prove expenses in an IRS audit without receipts and checks? Thanks to the tax case of Cohan v. Commissioner,39 F. 2d 540 (2d Cir. 1930), the IRS will allow expenses even if receipts and checks are missing. All you need is a reasonable basis to recreate the expense and credible testimony that you actually spent the money. [...]
It is common to feel like you are not getting a fair shake from an IRS auditor. Frustration mounts with perceptions that the auditor is unreasonable. No matter what you do, the auditor cannot be satisfied. You are told you owe money to the IRS, and you know you don’t. There is good news [...]
If you find yourself in an IRS pickle, there are three IRS employees you are most likely to come face to face with. Those are Revenue Officers, Revenue Agents and Special Agents. Here is what to expect from each: An IRS Revenue Officer is in collection enforcement. Often, the first contact you will receive from [...]
