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NHS reforms live blog: trust me, I’m a doctor

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Question: I have a few questions concerning U.S taxes and the IRS:?

1. I own three small business, what is my appoximate chance of being audited by the irs in any given year? percentage please, if you can.
2. If I am audited by the IRS, will they only look at my income or will they also look at the amount of money in my bank?
3. I am also trying to sell a few cars, for a grand total of about 150,000. Will depositing this much in, say, a wire transfer (not cash), get the banks/IRS suspition? I ask this because I know the IRS (if reported to), is suspicious of cash deposits in excess of 10km, due to anti- money laundering laws, and while I am not planning to klaunder money, I ABSOLUTELY CANNOT have my businesses audited this year.

Thanks!

Answer: 1. I own three small business, what is my approximate chance of being audited by the irs in any given year? percentage please, if you can.

The IRS audits business at random as well as statistical data reporting. If your business reports data that is higher than statistically normal for that particular business you may get audited. Also, the IRS selects business returns at random to audit. Examination of personal returns has been around 1% for the past 4 years. The percentage is higher for the higher income levels, up to 7% for returns over $1Million. For Small Corporate returns under $10Million in assets has been just under 1%. Subchapter S and partnership returns examined have been just under .5%

2. If I am audited by the IRS, will they only look at my income or will they also look at the amount of money in my bank?

The IRS conducts 3 basic types of examinations. Depending on the type of examination, the IRS requests different information. For a Field exam, they will look at your entire set of books and records, including all bank statements.

Types of Examinations: 1. Correspondence, 2. IRS Office,3. Field Exams (taxpayer’s home or taxpayer’s business location)

3. I am also trying to sell a few cars, for a grand total of about 150,000. Will depositing this much in, say, a wire transfer (not cash), get the banks/IRS suspicion? I ask this because I know the IRS (if reported to), is suspicious of cash deposits in excess of 10km, due to anti- money laundering laws, and while I am not planning to klaunder money, I ABSOLUTELY CANNOT have my businesses audited this year.

There are no guarantees to ensure your return won’t get audited. The IRS selects returns at random every year as well as selecting returns based on statistical data reporting. The Treasury Department requires the Bank to file a form for any $10k deposit. This is a Treasury Department Regulation and not an IRS one. The IRS requires taxpayer’s to declare amounts in foreign accounts or recipients of foreign trust, regardless of the amount, on their tax returns

Alliant Insurance Services Launches Online Program Designed to Improve Corporate Governance of Healthcare Organizations

Developed by Alliant Healthcare Solutions and Kalorama Partners, BoardWise Program Kicks Off With Online Webinar Series April 5-19

Tax Problem Fixers Inc

Question: Can anyone tell me the correct Title and Section of the US Code?

Here is an excerpt from an article from Apple.com on the statute of limitations for the IRS’ collection of back taxes:

The IRS has 10 years to collect outstanding tax liabilities. This is measured from the day a tax liability has been finalized. A tax liability can be finalized in a number of ways. It could be a balance due on a tax return, an assessment from an audit, or a proposed assessment that has become final. From that day, the IRS has ten years to collect the full amount, plus any penalties and interest. If the IRS doesn’t collect the full amount in the 10-year period, then the remaining balance on the account disappears forever. The statute of limitations on collecting the tax has expired.

What is the statute number?

Answer: 26 USC 6501(a) gives three years from the date a return was filed for the IRS to collect a balance due. However, once the IRS actually makes an assessment of taxes (generally about 6 to 8 months after the return is filed), 26 USC 6502(a) gives ten years from the date of the assessment for the IRS to collect the taxes.

For more specific information on your tax problem, contact a tax attorney in your state. For a referral, contact your local or state bar association.

John Bullis: What is the ‘statute of limitations?’

A part of the tax law is the “statute of limitations.” That is the limit of how long a tax return is open for audit by IRS or for amendment by the taxpayer.

Audit Preparation – Statute of Limitations for Audits

Question: Why do I want an auditor possition?

I have an interview for an auditing position. They always ask this question “why did u decide to become an auditor?”. I’m having difficult time answering this one because I really don’t care whether its tax or auditing position I juts want to get a job and then I’ll see if I like it or not. Obliviously I can not give such an answer. What do you think I should answer though? Thanks

Answer: You like working with numbers, have good attention to detail, like to get things done properly and are structure dependent.

State Faults Holland District’s Budget Practices

The Holland Central School District has enjoyed a full piggybank of reserve money over the years, something state auditors feel is a detriment to the community’s tax base. An audit compiled by the Office of New York State Comptroller examined the district’s budgetary practices for the last five years and stated the administration and School Board “did not prepare reasonable budgets” from the …

Download TurboTax Deluxe Federal e-File State 2010 for free

Question: Will filing an ‘out of business’ form for my small business trigger a tax audit?

I haven’t had any business to report in over a year (I have another full time salaried job) and want to file a going out of business notification to the dept of revenue, but I am afraid that it will increase my chances of being audited, and I have not been fastidious with my bookkeeping in the past few years. I don’t write anything off and have just been reporting ‘zero sales-tax due’, but if i dissolve the company, will this be an audit trigger?
What happens if, in the future, I sell merchandise to friends or family? (my business was jewelry repair.) I still would have my wholesale accounts, so how do I report that? What about sales tax? Also, I think the word ‘jeweler’, as a profession, is a red flag, correct? Will I be more likely to be audited?

Answer: Dear Kat26: I wish all my clients were like you “fastidious”. Bravo! Do not be afraid to report items you have maintained records on and have complied with the law. I believe many people go out of business and never report anything. Remember also this year many business’s will close their doors and will never be seen again.

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provide. Click on my profile to read more.
Errol Quinn Enrolled Agent Master Tax Advisor

Huelskamp constituents want change in DC

U.S. Rep. Tim Huelskamp, R-Fowler, doesn’t plan to start impeachment proceedings against President B …

House Session 2011-02-18 (18:02:48-19:03:56)