Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Audit-by-Mail to Become More Common for Businesses and Individuals
Author: Scarinci Hollenbeck, LLC
Date: February 15, 2013
Key Contacts
Back
Small businesses and affluent individuals have no doubt missed the intense scrutiny the Internal Revenue Service has ramped up recently. It also appears that more thorough examinations are likely in the future, albeit in a different format.
Although the IRS is aggressively trying to close the $385 billion tax gap, it lacks the financial resources and manpower to conduct full-scale audits of those companies and individuals it suspects of skirting U.S. tax law. In response, the agency is instead scrutinizing returns more closely via its audit-by-mail program, according to the Maryland Capital Gazette. The news source notes that tax audits have surged in recent years, and of the 1.5 million audited returns of 2011, roughly 75 percent were correspondence audits completed by mail. In these audits, the IRS generates a mailed notice to taxpayers requesting that they substantiate some information on their returns.
Although these audits may seem expedient, and are typically processed more quickly than in-person examinations, it’s still important that business owners and affluent households treat them with the same level of seriousness that they would another type of IRS inquiry. An improperly worded response or document stream may invite closer scrutiny that could turn into a full-scale audit with IRS officials. In many cases, taxpayers may go into too much detail when answering these questions, which can also lead to additional inquiries. For this reason, it’s important that business owners with significant financial interests rely on a professional who understands the complexity of tax codes and regulations.
Consulting a tax attorney may provide the type of clarification and guidance needed to clear up any issues before they evolve into more serious legal issues.
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.