IRS Insider Reports – Golden Tips About IRS Tax Audits
If you want to complete your taxes accurately before the deadline in easy way possible, you should certainly prefer online income tax preparation and electronic tax filing method.
Very few changes have occurred in the Tax Audit and the IRS Collection sides of things in the past 10 years. It has been very clear though, that the IRS Tax Audits are well on the rise, probably due to the economy and an order for the IRS to collect more money to pay for the huge deficit. Before it collects the money it has to find the money. The IRS does this by auditing large numbers of taxpayers, assessing the money and then collecting.
Child Support Payments Child support is not taxable to the recipient. Due to this fact, the child support paid by a person is also not deducted from the supporter's tax return. However, maintenance payments are taxable to the recipient.
The IRS has a different philosophy in the hiring of IRS Revenue Agents. In the past they would hire right out of school. Their training was all on the job. They were very green and it was obvious they were not schooled into the world of business. Today is a much different story.
The IRS Agents of today are more seasoned, and many have worked in either public accounting or in the tax department of a large corporation and can spot major issues quickly, not getting lost in the details. They are much easier for us to work with, but they spot audit issues in a heart beat.
Online filing system will allow you to look into the matter correctly, so you will be able to fill up the online forms properly. Everything is outlined in such a way that you won't find it difficult or confusing to finish your task.
Welfare and Other Public Assistance Benefits Money obtained from government benefits focused on need is also not taxed. This includes food stamps, cash aid, and medical aid among others. Some of the governmental benefits include mortgage assistance, nutrition plan for the elderly, disaster relief, old age, accident survivors and disability benefits.
A few Insider tips: 1. For those of you who are going to experience a tax audit, do not allow the IRS to go to your office, always meet somewhere else. 2. Hire a tax professional, a former IRS Agent. 3. Do not file your current year, put it on extension so the IRS does not audit that year as well.
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