Tag: IRS & State Audits

Contractors and business owners are able to deduct travel costs for travel away from home. This typically includes mileage and lodging costs. The amount of these expenses can be substantial. The IRS frequently audits and adjusts these expenses. Even with perfect records, the expenses may not be allowable depending on where the taxpayer’s “tax home”… Continue reading Deducting Travel Expenses for Travel Away from Home

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There are a number of issues that the IRS frequently examines on audit.  Car and truck expenses are high on that list.  The applicable rules and court cases must be reviewed before presenting records to the IRS to substantiate car and truck expenses.  This article examines several of these rules and court cases. Deductible Car &… Continue reading IRS Audits for Car & Truck Expenses, What You Need to Know

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Can you take a deduction for clothing?  What if you purchase the clothing for work and would not otherwise have purchased the clothing?  What if the clothing is only worn at work?  This is a common dispute that comes up on audit with the IRS.  The Farolan v. Commissioner, T.C. Summary Opinion 2018-28, case provides… Continue reading Can I Deduct My Clothing Costs?

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The IRS almost always checks for unreported income when it audits an income tax return. The IRS does this by analyzing the deposits made in the taxpayer’s bank accounts. But what if a deposit was not taxable, as in the case of an amount received for a third party and paid out to a third… Continue reading The Ins and Outs of the IRS’s Bank Deposit Analysis

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Can you deduct car and truck expenses, such as mileage, if your business has minimal activities?  The court addressed this in Samadi v. Commissioner, T.C. Summary Opinion 2018-27, which provides an opportunity to consider the question. Facts and Procedural History The facts and procedural history for the case are not unusual.  The taxpayer obtained a real… Continue reading Deducting Mileage for Business With Minimal Activities

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Clients often ask us whether the IRS can disclose information that they provided to the IRS.  The short answer is “no,” but there are a number of exceptions.  This article examines the rules that prohibit IRS employees from disclosing taxpayer information and some of the remedies that are available if the IRS violates the rules.… Continue reading Can the IRS Disclose My Tax Return?

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If you have an IRS dispute brewing and you have not been able to resolve the matter with the IRS, you are probably going to have to ask the IRS Office of Appeals to consider the case. The IRS Office of Appeals is the administrative forum for resolving tax disputes. It provides taxpayers with an… Continue reading IRS Disputes: IRS Appeals (Explained)

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