Help for IRS Audits We’re seeing an increase in IRS audits in 2011 for 2009 and 2010 returns. Restaurants are being audited. Individuals with schedule Cs are being audited for travel; automobile; and meals and entertainment. TIP ONE: If you’re audited, never represent yourself. We’ve represented two tax attorneys in the past! Taxpayers talk too much and give the IRS too much information. We’ve been retained by 3 new clients this week alone. Each will be represented by one of two MBAs in tax. TIP TWO: Be respectful. The IRS will not go away. If the notice says reply in 10 days, reply in 10 days. TIP THREE: Hire a representative that knows the rules but is there to win for you. TIP FOUR: NEVER GIVE UP ON THE NEGOTIATION. If the IRS is correct and there is no documentation for certain deductions or if income is not reported, and if they find it, remember you can always try to set up a payment plan. TIP FIVE: If there is an IRS audit adjustment remember to amend the … [Read more...] about 6 IRS Audit Tips
News
Tax code and tuition
More good news for those of us with College Students The tax code gives many tax incentives for parents and students who are saving for, or already paying, higher education costs or are trying to re pay student loans. There is a Hope and Lifetime Learning Credit for the qualified tuition and related expenses of the students in your family (i.e., you, your spouse, or an eligible dependent) who are enrolled in eligible educational institutions. Different rules apply to each credit. If you claim a Hope Scholarship Credit for a particular student, none of that student’s expenses for that year may be applied toward the Lifetime Learning Credit. You may be able to claim a tuition deduction of up to $4,000 of qualified education expenses paid during the year for yourself, your spouse, or your dependent. You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return. The … [Read more...] about Tax code and tuition
Money Saving Tips – Videos
This Blog is about accounting and taxes, however the point of both these topics is to save money. I will sometimes digress to money saving tips. These will include topics from travel to entertainment to real estate. As my Uncle Joe always said "A buck is a buck." My family has been using Netflix for the past four years. Netflix recently raised their prices. Now as the marketplace evolves there are now more choices. Amazon.com now offers movie streaming to Amazon Prime customers for free. Amazon Prime customers pay $79/ year and get free 3 day shipping for 1 year. This membership also lets people do free movie streaming from Amazon, however the access is a bit restricted and for more current movies you have to pay .99 to 5.00 for a movie for 40-48 hours. Blockbusters.com has been reduced to just $10/month. Its a great alternative to premium movie channels. This is a great solution to Dish Network subscribers. This is not an option if you are not a Dish Network … [Read more...] about Money Saving Tips – Videos
5 ways to know you have the right CPA
This is the time of year when everyone starts thinking about changing accountants. Here's my list of what you should look for in your new or existing CPA. 1. Do they represent their client base well in front of the Internal Revenue Service. How would you know this? Ask about him about his experiences within the last twelve months. What were the issues and how were they resolved. 2. Can they tell you exactly how much money they save you every year? You should be able to ask him this. 3. Tax laws change every year. Is he asking you new questions about your return every year. An example of this is estate tax rules. Is he letting you know about estate rule changes. 4. Has his firm completed Peer Review yet? All firms are now required to submit to this evaluation. What were the findings? 5. Is he a one man show? No one is an expert in everything. A good firm has several accountants with different talents. The best tax accountant may not be who you want representing … [Read more...] about 5 ways to know you have the right CPA
Smart Phones can help with Business Travel Record Keeping
I was talking with a client, an airline pilot, about travel expense record keeping. He uses a great system. Use your iPhone or Smart Phone to input expenses as they happen in your calendar. As soon as the check comes from dinner, he puts the amount and location. At the end of the month his costs are all in one place and its easy to have a clean record for his accountant. This is a simple way to get all the deductions you can while keeping the pain and suffering to a minimum. … [Read more...] about Smart Phones can help with Business Travel Record Keeping
CPA view of Turbotax software
I think Turbotax works great for many people. If your IRS return is simple you can save money using this service. I frequently advise tax clients with simple IRS returns to use this service. I want to give my clients the best service and advice possible and if they can save money using a free website I let them know. There are usually specialists in every IRS center who review Turbo Tax Returns. Recently I was at the IRS and I saw a senior agent I knew from a previous IRS audit. She had 30-40 files on her desk and I asked what she was doing. She said she was auditing turbo tax generated tax returns that had obvious errors such as double deducting interest expense. When reviewing your Turbo Tax generated tax return look for deductions entered showing up more than once. As a general rule, use Turbo Tax if you have a few W-2s and simple itemized deductions and interest income. If you are trading stocks, have rental properties or a business, its time to check in with a … [Read more...] about CPA view of Turbotax software
Late or unfiled tax returns?
You have not filed a return in several years? Don’t stay awake at night with worries. As a tax professional I see this frequently. Here is what I recommend. I always get a power of attorney and deal with the IRS myself. I call the IRS and the Franchise Tax Board and tell them the game plan and usually file within 60 days. If I call the IRS before they contact the client, its much easier to work things out. Whatever we agree to with the IRS we do. I send each return in a separate package with its own cover letter. I send each return certified mail so we have proof the return has been filed. In many cases people actually get refunds. You can do this yourself, but it is overwhelming, just call us. Tim from our office is used to filing delinquent returns. We can go back 10 years if necessary. And then we can plan out the payment of the taxes. … [Read more...] about Late or unfiled tax returns?
Audits and Financial Reviews from Department of Development Services
New Audit and Financial Review Requirments PEER REVIEW: Peer review is required for all California-licensed firms, including sole proprietorships, which perform accounting and auditing services using any of the following professional standards: Statements on Auditing Standards (SASs) Statements on Standards for Accounting and Review Services (SSARS) Statements on Standards on Attestation Engagements (SSAEs) Government Auditing Standards (Yellow Book) Audits of non-SEC issuers performed pursuant to the standards of the Public Company Accounting Oversight Board. Peer review is a systematic review of a firm's accounting and auditing services performed by a peer reviewer who is unaffiliated with the firm being reviewed to ensure work performed conforms to professional standards OUR FIRM: Rojas and Associates, CPAs is a regional CPA firm with offices in Sacramento, San Jose and San Clemente, California. We currently have 2 peer reviewers … [Read more...] about Audits and Financial Reviews from Department of Development Services
Quickbooks Help for IRS Audit
QuickBooks and IRS Tax Audits A Senior IRS agent recently told me that each unit now plans to have at least one person trained in Quickbooks. She indicated that the IRS can then ask for a copy of your Quickbooks file instead of requesting all of the printouts provided to them by the taxpayer’s representative or the taxpayer. Recently, we were referred a business client who was in the middle of an IRS audit and was represented by a tax attorney. We had our team of myself (CPA , MS in Tax) and our Quickbooks ProAdvisor help with the audit. The owner of the Company said as soon as we became involved the entire audit changed in the company’s favor. Why – Because we teach Quickbooks. We’re the experts at Quickbooks and we quickly gave the IRS exactly what they requested and assisted them with what they were looking at. In order to come up with a winning strategy with the IRS, we need to cooperate and treat the IRS with respect but … [Read more...] about Quickbooks Help for IRS Audit
