Home | Tax Blog | Tax Evaluation | Resources | Common Tax Questions | Back Taxes | Contact Us

New Tax Laws Difficult To Navigate

January 23rd

The IRS audits little more than 1% of all personal tax returns annually. The agency doesn’t have enough personnel and resources to examine each and every tax return filed during a year. So the odds are pretty low that your return will be picked for review. But, with many new 2013 tax laws in effect and some still yet to be voted in Congress, the chances of making a filing mistake increases the chance of an audit.

Don’t Put Your Return At Risk

Facing pressure from a Congress dealing with a growing federal deficit, the IRS has made it clear it takes the enforcement of tax audit seriously. But the rich aren’t the only targets. Recent tax law changes, particularly when it comes to confusing tax breaks such as the first-time homebuyer credit, always prompt closer looks at returns. And if you’re a small-business person, either as a partnership or a Schedule C filer reporting self-employment income, you’ll want to take extra care with your deductions. And those with lower incomes eligible for the complicated earned income tax credit also face added scrutiny. Nearly 30 percent of audited returns had this claimed as a tax credit.

A few of the common mistakes made are failing to report all income or a mis-match of information from a W2. If your charitable deductions are disproportionately large compared with your income, it raises a red flag. Also, taking higher than average deductions or not having proper receipts may pull your return for review. And, if you sold stock you will need the exact dates of sale and prices. There’s no sure way to avoid an IRS audit, but by being aware of red flags, your chances of drawing unwanted attention from the IRS are decreased. In the event of an audit, a tax debt attorney will work on your behalf with the IRS towards a positive resolution.


Subscribe Now

Follow on FaceBook
News & Events
Monday, August 01, 2011

We are excited to launch our new site LeeTaxHelp.com.
Monday, September 05, 2011

If you think you might be need the advice of a Dallas Bankruptcy Attorney you can view on sister site at http://leebankruptcy.com
Back Taxes (5) General Tax Information (65) News (39) Payroll Taxes (5) Tax audit (10) Tax Debts (3) Tax deductions (16) Tax Fraud (4) Tax Laws (14) Tax Liens (10) Tax payment plans (14) Tax programs (21) Tax Scams (6) Uncategorized (2)
Recent Posts
Advantages of Using a Tax Debt Lawyer
Tax Debt Relief In 2014
Tax Debt Installment Agreements
Understanding the Five Tax Debt Strategies
Back Taxes: What You Can Do
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011