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.
- 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
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
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.