The IRS Audit Blog

Posts Tagged ‘tax audit’

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 …

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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)

Question: A couple of world history questions?

Please, only answer if you know.

1) Which of the following techniques wasn’t used by the Nixon administration against percieved enemies in the U.S.?
a- illegal wiretaps
b- arrest w/o cause
c- audits of tax returns
d- CIA investigations

2) This nations government received foreign aid from the Carter administration, but the Reagan administration aided those rebelling against it?

3) This nations affiliations with cuba led to a US invasion during the Reagan administration.

4) Nation torn apart by civil war between Muslims, Serbs, and Roman catholic croats.

5) This is the presidential practice of withholding funds for federal programs that was declared unconstitutional.
ANY ANSWERS HELP!!!

Answer: 1. b (this is just a guess)
2. nicaragua
3. nicaragua
4. bosnia
5. Sequestration (this is just a guess, it said on this one website- “the withholding or cancellation of funds”

AgFeed Industries, Inc. Announces 2010 Results

AgFeed Industries, Inc. , an international agribusiness company with operations in the U.S. and China and one of the large independent hog producers and manufacturers of animal nutrients in China announced record levels of revenue in both its animal nutrition and U.S. hog production units for the fourth quarter of 2010 and for the full year 2010.

Al Aiello Teaches Proper Ways Of Protecting Yourself From an Audit

Question: Accountants! Don’t be boring, save the planet instead!?

Have you lived in a country which should be stinking rich but is jam packed with people living in blighted misery?

The fundamental reason is always corruption in public office. Who can spot that? Only accountants. But audit within a nation is controlled by the government of said nation, and accountants with guns at their heads or bungs in their pockets are only human. So here’s my idea:

…a UN sponsored crack team of Chartered Accountants and Auditors who can be called or sent into a country and audit all or any part of the public tax and spend therein. They could have very limited powers, e.g. report only (red/amber/green), or you could give them the ability to send people to the Hague.

Participation by the countries concerned would be voluntary (which suggests that limited powers are actually more effective) and would occur if a government wanted to show itself to be clean, maybe after a scandal, or because it was excluded from some club such as WTO.

Well?

Answer: I like that idea. The practical issues (such as the breadth of specialist knowledge required) are immense though; public sector accounting is nowhere near as organised as corporate accounting (which itself varies wildly across jurisdictions). Also, the limitation of powers means they would have to face the same problems that make UN weapon inspections so ineffective.

Simplified net income taxation okayed

THE House committee on ways and means has approved a bill simplifying the net income taxation scheme (SNITS) that aims to limit from 10 to eight the allowable business deductions from gross revenues for self-employed individuals and professionals. As per the approved bill, deductions from gross income shall be allowed for only eight expenses: salaries and wages; supplies and utilities; rentals …

Energy Efficiency Audit Training | …

APNewsBreak: Audit finds confidential data on NJ state computers sent to auction

TRENTON, N.J. – Taxpayers’ Social Security numbers, confidential child abuse reports and personnel reviews of New Jersey workers nearly went to the highest bidder after the state sent surplus computers out for auction.

Personal Financial Planning Tips : How to Avoid an IRS Income Tax Audit