IRS Audits Archives - Federal Direct Tax https://www.federaldirecttax.com/blog/tag/irs-audits/ Helping Individuals & Businesses Enter The Tax Preparation Industry Fri, 09 Jul 2021 15:04:05 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 IRS Launches 2012 EITC Audits for Preparers https://www.federaldirecttax.com/blog/irs-launches-2012-eitc-audits-for-preparers/ Tue, 26 Nov 2013 16:55:44 +0000 http://www.federaldirecttax.com/blog/?p=1562 The IRS is starting this year’s Earned Income Tax Credit due diligence compliance audits of return preparers. To select preparers for audits,  the service will “look at returns with a high chance of errors competed by the same preparer,” according to the IRS.gov. The audits review at least 25 EITC returns for the preparer’s due-diligence […]

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]]> Schedule C Clients and How Then Can Beat An Audit https://www.federaldirecttax.com/blog/schedule-c-clients-and-how-then-can-beat-an-audit/ Mon, 24 Oct 2011 13:00:08 +0000 http://www.federaldirecttax.com/blog/?p=758 IRS statistics show that approximately 4% of all returns including schedule C income eventually get audited.  Half of these returns are audited due to a random selection and the other half are chosen based upon a scoring assessment based upon IRS standardization charts for different acceptable business expenses.  The IRS released that the most common […]

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