IRS is flexing its muscle
According to www.thefiscaltimes.com, the Internal Revenue Service (“IRS”) is scrutinizing groups of wealthier taxpayers for underreporting of income. In fact, the IRS is showing far less sympathy than in the past few years and appears to be pursuing tax collection much more aggressively.
In an effort to decrease under-reporting of income this year, the IRS will begin reviewing credit card statements and cross-checking data against tax returns. The IRS won’t limit its actions to only the wealthy……even small Schedule C audits are worth it because everyone who knows the average-Joe being audited is more likely to comply with the rules in their tax return.
Some of the groups who are more likely to be audited by the IRS include:
•Taxpayers who own their own business
•Taxpayers with income of more than $200,000
•Taxpayers claiming refundable tax credits
•Taxpayers over reporting deductions
•Taxpayers with offshore accounts.
It is uncertain how long the IRS will, or can afford to, keep taking its aggressive approach. Regardless, even in tough times being honest can payoff in the long run!
If you are facing tax problems, call The Schreiber Law Firm at (619) 269-8600. The Schreiber Law Firm serves clients primarily in the areas of tax problem resolution, bankruptcy, short sales, foreclosures, and estate planning.
At The Schreiber Law Firm, you receive personalized, individual attention and you always speak to an attorney, not an assistant, regarding your case. The Schreiber Law Firm provides representation at a lower cost – in order to assist those who need help the most, but can afford it the least.
The contents of this blog are intended for general informational purposes only and should not be used or relied upon as legal advice or legal opinion on any specific facts or circumstances. You are encouraged to consult with the attorney concerning this information in this blog or any specific legal questions you may have.