Lately, dozens of celebrities and other wealthy socialites are being charged with crimes such as money laundering, mail fraud, and conspiracy in their part of the college scam you have been hearing about in the news. I can just picture in the background, a dozen IRS auditors “chomping at the bit” for their chance at each and every tax return the guilty parties have filed for the last 10 years.
The IRS can audit returns up to 3 years past the filing date, BUT they can go back as far as they deem necessary if they can prove fraud. Think of the thousands of dollars these taxpayers claimed as deductions to a “fake” charity. The IRS will not only make them now pay taxes on the fraudulent deductions, but the IRS can also charge a penalty of up to $250,000 per person, per year where fraud is proven.
Audits are not just for the wealthy either. Did you know that a self-employed individual is one of the most audited taxpayers? The IRS is counting on the fact that self-employed taxpayers do not keep all of their receipts. More importantly, they know that most small business owners do not know tax law.
We can help keep you safe during an audit or know what the rules are for your business before you file. With several services such as tax planning, audit protection, tax preparation, and audit representation, let us help you keep your small business safe from the IRS. Audits are only scary if you cannot prove what you have on your return. Call us today to see how we can help you! 423-870-2440.
Amy Psyhos is an Enrolled Agent and our Tax Resolution Manager. She personally assists potential and existing clients in having a better understanding of the resolution process. She evaluates each client’s financial information to identify available settlement options to best handle their IRS debt. As information is requested from the IRS, she gathers and prepares all of the necessary documents to ensure all IRS deadlines are met.