Continuing on last week's topic on tips for dealing with an IRS audit and avoiding penalties, it is important to be up front about any errors you may have made. For example, if you entered $10,000 instead of $1,000 for a line item, just own up to it as it will save time as well as demonstrate your integrity. Another tip is to locate the original receipts for any assets in which you are showing any depreciation for, even if the purchase of an asset goes back more than three years. The IRS can request purchase documentation for any asset on your schedule for depreciation.
It is that time of year again when people start contemplating filing their tax returns and wondering, perhaps how to respond to an Internal Revenue Service audit and avoid penalties, should an audit be requested. If you are facing an audit of your California business taxes and after reviewing your returns see that you did indeed make a few mistakes, should you just file an amended return and skip the audit?
It is that time of year again when Alameda residents and others around the country begin to think about preparing and filing income tax returns. With tax laws constantly in flux these days it can be a good idea for many who do not normally enlist the services of a professional tax preparer to consider doing so this year. As previously reported, the fiscal cliff has resulted in a number of changes to tax law that could affect many.
As Alameda County residents celebrated the end of one year and the beginning of a new one, members of Congress were busy reaching an agreement that prevented the country from going over the so-called fiscal cliff. While most people were just happy to learn that a deal had been reached on New Year's Day, the question soon became: What does the deal mean to me?