Audit Magic – How States Estimate Your Cash Sales
How a State Estimates Your Cash Sales (The Mark-Up Tactic) If your business accepts cash, and you file sales tax returns, this article is for you. This article applies in all states that estimate your cash sales when conducting audits for sales taxes. However, this borrows the law relied upon by the Illinois Department…
What Happens in a Sales Tax Audit (The 3-Stage Process)
What Happens in a Sales Tax Audit (The 3-Stage Process) How do you defend yourself in a state sales tax audit? Here are 3 stages to help you plan for the audit process: SALES TAX AUDIT PROCESS You receive a letter from your state, if it has a sales tax. Perhaps your business…
IRS Audit Rules: Independent Contractors vs. Employees
IRS Audit Rules: Independent Contractors vs. Employees Myth: The Internal Revenue Service (IRS) website says that it sets Clear guidelines to help businesses decide if a worker should be classified as an independent contractor or an employee. Debunked: The guidelines are not absolute. Every single case is unique, and does not neatly fit into…
Can You Tell What’s Missing?
First, an Unusual Holiday Message To all the hardworking business owners out there … I know your day, your month, your life is so very busy. But today, I want to remind you of something that we sometimes forget to acknowledge: the people who surround you every day … your work community. Your employees,…
Do This to Correct a Bad Tax Audit (2 Ways)
Do This to Correct a Bad Tax Audit (2 Ways) What happens after an IRS or state tax audit, where you get a really bad result? Imagine if now it’s too late to continue fighting it. Because it seems like all your options are gone. And now the government is pursuing you to collect…
5 Reasons to Invest in Company Training
5 Reasons to Invest in Company Training Tax Law Offices Inc. wants to be the best national team in handling tax problems for small businesses. To that belief, we equip our entire team with the technical knowledge, relationships, and exposure necessary to provide exceptional Tax Resolution and Audit Defense service. That’s why we train our entire…
What Does IRS Audit Representation Cost
What Does IRS Audit Representation Cost Question: “What should a person expect to pay for Audit Representation?” Answer: There is no hard rule for the cost of representation. Look for these few things that affect the legal costs for audit representation: The quality of books and records could make the lawyer’s job…
Tax Deductions for Gambling Losses: What IRS Secretly Wants
Tax Deductions for Gambling Losses: What IRS Secretly Wants For those who play, bet, or wager, this is for you. If you play, eventually you will win. Some win big. But those losses really stack up, as well. You must report your winnings on your tax return. You should get to claim your losses too,…
Which is Better for Taxes: Hobby or Business?
Which is Better for Taxes: Hobby or Business? The title, “Which is Better for Taxes” is a trick question. Income from both is subject to tax. Because of the profit motive, businesses tend to result in a greater amount of sustained income and therefore have more taxable income for the owner. (Also, businesses might…
Can You Appeal a Denied IRS Refund?
Can You Appeal a Denied IRS Refund? Question IRS denied issuing my refund because they said that I filed too late. I filed this tax return much earlier, but the IRS lost it. What can I do to appeal this? What happens when you fail to claim an IRS tax refund within the…