Although the major majority (92 percent) of tax returns are filed electronically, the IRS is seeking full conversion to e-filing. Two sections of The Taxpayer First Act of 2019 (TFA) extend that mandate by requiring more businesses, partnerships and nonprofit organizations to e-file.
When thinking about tax obligations, companies and individuals often focus their attention on federal and state income taxes. However, it is important that companies not overlook their payroll tax obligations, as these can often be a trap for the unwary.
To address the loss of over 40% of its Revenue Agents over the past decade, in 2017 the IRS Large Business and International Division (LBI) embarked on an issue-focused approach to identify and address tax compliance problems. LBI Revenue Agents still conduct the traditional broad-based examinations in which many tax issues are examined but are moving toward focusing on certain tax issues, in which taxpayers having one or more of these issues on their tax return are selected for what the IRS calls “campaign treatment streams.”
Tax compliance controversies can involve proposed tax assessments, tax collection or other IRS actions. While many taxpayers believe that the first decision in an IRS tax compliance matter is final, almost all decisions are subject to review by the IRS Independent Office of Appeals.
It is important for taxpayers to carefully read each piece of mail that the IRS sends them. In the past, the IRS would often initiate contact with a taxpayer via a phone call. Due to numerous telephone scams, including some involving the impersonation of IRS employees, the IRS now initiates all contact by mail.
In a recent article for Industry Today, James Pickett discusses the most common types of penalties issued by the Internal Revenue Service (IRS) each year. Of the 40 million penalties issued in 2017, 26 million involved three common penalties: delinquency (failure-to-file), failure-to-pay and failure-to-deposit employment taxes.
In an article published recently in Construction Executive and its CE Weekly newsletter, James Pickett explains what taxpayers should do when dealing with various IRS notices. Pickett emphasizes that taxpayers and their representatives should carefully reach each piece of mail that the IRS sends and to never ignore correspondence.
James Pickett shares tips for preparing for an IRS Tax Audit in a recent article published by CPA Practice Advisor. The article outlines the process for advising clients who have received an IRS audit notice as 1 in 160 individual taxpayers are audited and approximately 1 in 12 for returns reporting more than $5 million in gross income.
There is a letter for you. The return address looks ominous – as the first line reads: Internal Revenue Service. You opened it. Your worst fears were confirmed. It is the dreaded notice that your individual income tax return is under audit or, to put it in the language used by the IRS, “your return has been selected for examination.”
James Pickett, Director of Tax Controversy, will be giving an overview of recent IRS changes at several upcoming speaking events in both Atlanta and Macon.
Moving season is on the horizon. In regards to state income tax, those intending on moving out of Georgia this year, or in the future, need to be aware there is an extra step to ensure Georgia is no longer considered their place of domicile.