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A Summary of the New IRS Appeals Procedures under the Centralized Partnership Audit Regime

In Audit, Partnership Tax by Matthew RobertsLeave a Comment

Congress has continuously struggled to find the right procedural mechanism to audit, assess, and collect taxes related to partnerships.  Prior to 1982, partnerships were not audited at all.  Rather, the partners of the partnership were subject to audit, assessment, and collection.   In 1982, Congress substantially modified these existing rules.  Under this new scheme – referred to as TEFRA – …

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The IRS Office Audit

In Audit by Larry JonesLeave a Comment

Our last Insight article on IRS audits covered correspondence audits.  Here we will discuss the office audit.  When a tax return has been selected for office examination, generally the examination of the return will be conducted at the office of the IRS.  Normally a taxpayer will find an office examination has begun when the taxpayer receives a letter or telephone …

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Types of IRS Audits – The Correspondence Audit

In Audit by Larry JonesLeave a Comment

Dealing with the IRS can be confusing and complicated. The IRS has a lot of power. Taxpayers have certain rights in dealing with the IRS. If you are audited, you may want to seek professional help. There are several types of audits, but the most common are the correspondence audit, the office audit, and the field examination. We will discuss …

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1099-K Audits

In 1099-K, Audit by Jason B. FreemanLeave a Comment

A Form 1099-K, Payment Card and Third-Party Network Transactions, is an IRS information return that is used to report payment card transactions.  The IRS first began requiring payers to report annual gross payment transactions on a 1099-K in 2012, following the enactment of the Housing and Economic Recovery Act of 2008, Pub. L. No. 110-289, 122 Stat. 2654, which added …

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Handling The IRS Audit

In Audit, IRS Regulations by Larry Jones3 Comments

            A. The following items should be discussed with the Revenue Agent at the first meeting: Meet with the Revenue Agent to present the power of attorney form and to establish the ground rules for the audit. Place for the audit. Interview of the client. Submission of document request by the Revenue Agent for documents …

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IRS Tax Penalties on the Rise, Particularly Employment Tax Penalties

In Audit, Employment Tax, Penalties, Trust Fund Penalty by Jason B. Freeman1 Comment

The IRS recently issued its annual Data Book, providing a glimpse into the world of tax administration during the past fiscal year.  The recent release provides a number of interesting takeaways, but here are a few of the highlights: The IRS assessed $27.3 billion in civil penalties during FY 2016. The IRS assessed close to $12.5 billion in additional taxes …