Tips from March 11, 2010 The Small Business tips today discuss types of tax audits.
Correspondence Audit: Simple procedure. The IRS requests you to document an item on your return by a specific date. Routine test for compliance.
Field Audit: The dreaded audit. IRS asks for documentation of various items on your return and meet with an IRS agent for thorough review of records. Be prepared to answer questions and have all paperwork needed.
Taxpayer Compliance Measurement Program Audit: Lengthy and detailed. Document and provide proof for every single item in your return. IRS and Congress use this for research and statistics, and are arbitrary regardless of how careful and perfect your tax return is.
Criminal Investigation Audit: Suspicion of tax evasion. The IRS will try to prove you have purposefully not paid your income taxes. If they are successful, you can face large fines and jail time. If you face this type of audit,... [Read Full Article]
Government and Economy
The Stimulus and Small Business
Sales are slow, banks are holding tight and many small businesses are strapped for operating capital. The good news is that both the House and Senate versions of the stimulus bill address this issue, to an extent. The bad news is they can't agree on how to handle it.
New TALF Plan Wins SBA Approval
Newest Version of the Troubled Asset-Backed Securities Loan Facility (TALF) includes Changes Requested By SBA to Help Unclog Secondary Market for Small Business Loans.
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