Tax Audits Archives

Failed a Tax Audit? Here Are Penalties and Solutions

8 March, 2025 | Tax Audits

Summary 1. Failing an IRS audit means you cannot provide enough documentation to support the claims on your tax return. 2. There are three potential outcomes of an audit: no change, you agree with the IRS’s proposed changes, or you disagree with the changes. 3. Penalties related to failed audits include accuracy-related penalties, failure to file or pay penalties, erroneous claim for refund or credit penalties, and civil fraud penalties. 4. Other implicatio... CONTINUE READING

Understanding NY Restaurant Sales Tax Compliance

9 June, 2024 | Sales Tax Tax Audits

Restaurant Sales Tax New York State — Rules and Failed Compliance Complex tax rules govern when, how, and for which products New York restaurants and bars can collect sales tax. It is crucial that restaurant owners understand these intricate requirements and their own obligations before going into business. Mistakes can lead to heavy penalties. Learn more about sales tax on food in New York... CONTINUE READING

Dealing with IRS Form 4564: Information Document Request

9 June, 2024 | Tax Audits

What Is the IRS Information Document Request (IDR) Form 4564? If you’re going through a tax audit, you have a lot on your plate, not to mention stress about what the final outcome will be. Audits happen for a variety of reasons for both businesses and individuals, and some may seem random. The goal is for audits to get resolved as fast and as easily as possible. You’ll need to become familiar with IRS Form 4564 if you... CONTINUE READING

Willful and Non-Willful Failure to File FBAR Penalties

8 April, 2024 | FBAR Tax Audits Tax Compliance

FBAR Penalties: What to Expect If You Don't Report Foreign Bank Accounts Nothing’s quite as alarming as finding out you’re in violation of a law that you didn’t know existed. If you have foreign bank or financial accounts, you may be required to file an FBAR every year. Failing to do so could mean paying tens of thousands of dollars in penalties. However, you do have options. Depending on your circumstances, how far behind you are in your filings, and whether or not you paid a... CONTINUE READING

New York Tax Audit? What to Expect With a NYS State Audit

2 July, 2023 | Tax Audits

What to Expect With a New York State Tax Audit No one wants to be selected for a tax audit. Even if you filed a correct return, sending in documents and talking with the auditor can take a lot of time. And if you filed an incorrect return or made a lot of estimates, the process can be a lot more harrowing. Facing an audit? Worried about an audit? Then, you're in the right spot. This guide explains what to expect. Note that this post specifically covers audits on... CONTINUE READING

IRS Tax Audit Procedure- Selection, Notification, Examination, And Appeals

18 November, 2022 | Tax Audits

An Internal Revenue Service (IRS) tax audit is a review or examination of a taxpayer’s financial information and accounts to check if the reported information is correct as per the tax laws and regulations. It is processed by the IRS officers appointed by the government. In the IRS tax audit help, the IRS officers check and analyze every single detail of the financial information of taxpayers to find out if there is any incorrect informatio... CONTINUE READING

Criminal Issues- Unfiled Tax Returns / Tax Fraud

1 August, 2022 | Tax Audits

Usually, the most panicked and upset clients call me and when they have not filed their tax returns in many years, and are extremely worried that by this inaction they will be arrested, or worse thrown in prison. Evading tax is a crime, but usually not failing to file a tax return. Therefore, criminal issues- unfiled tax returns is not a common occurrence. Occasionally, clients are audited for non-tax problems ( for example workman’s payment insurance, highway permits) by the IRS or State o... CONTINUE READING

When Should You Approach a NYS Tax Attorney?

25 May, 2021 | Tax Audits

When Should You Approach a NYS Tax Attorney? The Internal Revenue Service's, the New York State Tax Department and the NYC Department of Finance tax systems are very complicated and large, especially for those taxpayers who are filing their tax returns for the first time or who don't have enough knowledge, understanding, and experience in dealing with the IRS, NYS Tax Department or NYC Finance Department with tax matters when they have a tax problem. These are all very large organizati... CONTINUE READING

Be Prepared For Your Next Sales Tax Audit

9 January, 2021 | Tax Audits

It is certain, as an owner of a company or business, at some point of time you will be selected for a sales tax audit by the taxation department. You will get an official mail from the taxation department about your sales tax audit. You will get comprehensive details of your audit in the mail, and you will be obliged to follow all the instructions explained in the mail. Background Whether your business is a startup or has been around for years, you can be selected for... CONTINUE READING

Find out If You Are at Higher Risk of IRS Tax Audit in the Upcoming Year?

11 October, 2020 | Tax Audits

Find out If You Are at Higher Risk of IRS Tax Audit in the Upcoming Year? The biggest fear in the mind of Americans is being audited by the Internal Revenue Services (IRS), but the chances of going through the IRS audit process are very less. Studies have shown that 95% of taxpayers in the United States believe that it is their civic responsibility to pay their taxes and 87% of them have mentioned that it is unacceptable on their part to cheat on thei... CONTINUE READING

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