IRS Audits

IRS Tax Amnesty & Voluntary Disclosure Practice

IRS Tax Amnesty & Voluntary Disclosure Practice

What do you do if you have committed a serious tax crime but the IRS has not yet discovered it? Tax amnesty has been a longstanding practice of the IRS Criminal Investigation division whereby taxpayers are allowed to make timely, accurate, and complete voluntary disclosures to avoid criminal prosecution.

Taxpayers are given tax amnesty for “coming clean” regarding their tax crimes. There are two such programs depending on whether the tax evasion involves domestic or foreign income:

  1. Domestic Voluntary Disclosure Program (not to be confused with streamlined domestic offshore procedures which is a completely unrelated program)
  2. Offshore Voluntary Disclosure Program (OVDP) (UPDATE: OVDP was discontinued by the IRS as of 9/28/2018. Clients should consider the domestic voluntary disclosure program where needed)

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Dealing with an IRS Audit

Getting Audited by the IRS If you’re visiting this page, perhaps it’s because you’re being audited by IRS; or maybe you’re wondering what the IRS audit triggers are; or perhaps you’re just interested in learning about the IRS audit process. Regardless of why you’re here, it’s important to understand how to protect your rights during … Read more

Unreported Income

IRS Income Examination Process How does Uncle Sam know that you haven’t reported income if you don’t receive W-2s or 1099s? And you’re also clever enough not to deposit your unreported income in your bank account, so there is no “paper trail.” What then? The IRS uses what are called “indirect methods” of uncovering this income … Read more

Rental Property Losses

Rental Property Losses It is not uncommon for real estate investors to have rental property losses. The goal for many investors is not cash flow, but rather to hold on to the property for future appreciation. The deductibility of net rental losses on your personal tax return depends on many factors. General Rule: Rentals are … Read more

Hire an Independent Contractor or an Employee?

Hire an Independent Contractor or an Employee? Your business is growing and you need help. Do you hire an employee or an independent contractor? Difference between an employee and independent contractor It can be at times difficult to make a clear-cut distinction between an employee and independent contractor. The term independent contractor has been defined … Read more

Attorneys’ Fees – Are they Deductible?

Attorneys’ Fees – Are they Deductible? The good news for taxpayers is that attorneys’ fees in relation to tax services for individuals and small business issues are deductible! Basic Rule The basic rule is that attorneys’ fees are taxable if incurred to: Produce or collect taxable income; or Help determine, collect, or obtain a tax … Read more