Don’t panic: Receiving a letter from the IRS isn’t necessarily a bad thing, but it definitely can’t go unnoticed. Getting a letter actually addressed to you personally is becoming a thing of the past, what with email and social media taking over a lot of our correspondence. Nonetheless, you still received a letter addressed to […]
Audits
Questions and Answers: IRS Audits and Your Dental Practice
Being selected for an audit doesn’t mean that you’re suspected of incorrectly reporting your taxes for your dental practice. There’s no getting around it: The prospect of being audited by the IRS is unnerving, but the agency chooses to audit individuals and businesses for a number of reasons, including: Mismatched documents. If numbers from forms like […]
Tax Audit Red Flag – Money Losing Business(es)
The fifth article in our series about IRS audit red flags focuses on claims about businesses losing money. It’s one thing to have an occasional loss, especially during economic downturns when businesses everywhere are losing money. Rest assured, however, that the IRS knows the current trends of businesses and industries on a local and national […]
Tax Audit Red Flag – Forgot to Report Income
Well, to put it bluntly, you can get caught. And when you do, the tax man will force you to pay back taxes, in addition to penalties and interest. So, why is forgetting to report all of your income a tax audit red flag? Because computers are very adept at matching all the income earned […]
Tax Audit Red Flag – Exaggerated Charitable Donations
For the average person, there’s nothing more terrifying than the thought of getting an IRS audit. For some people, it ranks right up there with fears of dentists, flying, and clowns. This installment of tax audit red flags focuses on charitable donations. No, this is not to say you shouldn’t give to charity. It’s just […]
Tax Audit Red Flag – Your Ex-Business Partner Sends Letters to IRS.
While there is no sure way to avoid an IRS tax audit, paying attention to these tax audit red flags can decrease the chances of your dental practice receiving unwanted attention from the IRS.