Navigating an IRS Audit: Tips and the Role of an Attorney What is an IRS Audit? An IRS audit is a review or examination of an individual's or organization's accounts and financial information. This review ensures that information is reported correctly according to tax laws and that the reported amount of tax is accurate. Why Might You Be Audited? The reasons for an IRS audit can range from random selection to specific triggers. Common reasons include: Discrepancies between reported income and information on W-2s, 1099s, etc. High deductions in relation to income. Frequent losses reported ..read more

How can a tax attorney help you with an IRS installment agreement? Tax problems can arise from various circumstances, leaving many taxpayers feeling overwhelmed and unsure of how to proceed. This is where hiring a professional tax attorney can be invaluable, particularly when it comes to understanding and negotiating IRS installment agreements. Understanding IRS Installment Agreements An IRS installment agreement is a structured payment plan that allows taxpayers to repay their outstanding tax debt over time. This is typically used when an individual or business cannot pay the full amount o ..read more

Navigating an IRS Audit: Tips and the Role of an Attorney What is an IRS Audit? An IRS audit is a review or examination of an individual's or organization's accounts and financial information. This review ensures that information is reported correctly according to tax laws and that the reported amount of tax is accurate. Why Might You Be Audited? The reasons for an IRS audit can range from random selection to specific triggers. Common reasons include: Discrepancies between reported income and information on W-2s, 1099s, etc. High deductions in relation to income. Frequent losses reported ..read more

How can a tax attorney help you with an IRS installment agreement? Tax problems can arise from various circumstances, leaving many taxpayers feeling overwhelmed and unsure of how to proceed. This is where hiring a professional tax attorney can be invaluable, particularly when it comes to understanding and negotiating IRS installment agreements. Understanding IRS Installment Agreements An IRS installment agreement is a structured payment plan that allows taxpayers to repay their outstanding tax debt over time. This is typically used when an individual or business cannot pay the full amount o ..read more

Your notice or letter will explain the reason for the contact and give you instructions on how to handle the issue. If you agree with the information, there is no need to contact us. If, when you search for your notice or letter using the Search on this page, it doesn't return a result, or you believe the notice or letter looks suspicious, contact the IRS at  800-829-1040 . If you determine the notice or letter is fraudulent, please follow the IRS assistor's guidance or visit our  Report Phish ing page for next steps.  If the letter turns out to be real, call a local IRS Atto ..read more

Making a Request For Additional Assistance If you are a taxpayer with a disability who needs a reasonable accommodation, or you have limited English proficiency and require language assistance, inform the IRS employee that you are working with about your need for assistance. In addition, if you encounter an individual that volunteers or works at a LITC, VITA or TCE site, inform the individual about your need for a reasonable accommodation or language assistance. We encourage you to work with our employees, and volunteers or staff members within our assisted programs, for help with getting a ..read more

The IRS intends to provide certain additional transition relief for this year from the Schedule K-2 and K-3  reporting for certain domestic partnerships and S corporations with no foreign activities, foreign partners or shareholders, and without knowledge of partner or shareholder need for information on items of international relevance. For 2021, these qualifying domestic partnerships and S corporations will not have to file the new schedules. We are taking this step in response to feedback we received from the tax community and our stakeholders. The IRS will provide full details of th ..read more

The IRS is aware of a third-party software issue affecting qualifying farmers and fishermen attempting to electronically file Forms 7203. Due to these challenges, the Treasury Department and the IRS issued  Notice 2022-33   PDF , providing penalty relief for qualifying farmers and fishermen filing Forms 7203 if they electronically file their 2021 tax return and pay in full any tax due by April 18, 2022, or by April 19, 2022, for those qualifying farmers and fishermen who live in Maine or Massachusetts. Farmers and fishermen who filed their returns by the March 1 deadline are unaffe ..read more

Answer: To determine if the sale of inherited property is taxable, you must first determine your basis in the property. The basis of property inherited from a decedent is generally one of the following: The fair market value (FMV) of the property on the date of the decedent's death (whether or not the executor of the estate files an estate tax return (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return)). The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alterna ..read more

Understanding the difference between a Form w-2 and a Form 1099-MISC or Form 1099-nec Although these forms are called information returns, they serve different functions. Employers use  Form W-2, Wage and Tax Statement  to: Report wages, tips, and other compensation  paid to an employee . Report the employee's income and social security taxes withheld and other information. Employers furnish the Form W-2 to the employee and the  Social Security Administration . The Social Security Administration shares the information with the Internal Revenue Service. Payers use  ..read more