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Detroit Tax Law Blog

What should you do about a tax audit?

No matter how hard you try to avoid an income tax audit, this could come into play at some point. In short, this means the IRS wants to learn more about your tax filing to make sure all the information is accurate.

You have every right to be concerned about a tax audit. Of course, this doesn't necessarily mean you will end up owing more money or facing a criminal charge.

Are you familiar with the common forms of tax fraud?

As a United States citizen, it's always a good idea to have a strong grasp of the tax system. In addition to federal taxes, you should know where you stand with regard to state and local taxes.

By understanding the system and doing whatever it takes to stay within the legal limits of the law, you never have to concern yourself with trouble. Unfortunately, there are times when people get the idea that they can pay less than what they owe. As a result, the IRS may step in and charge them with tax fraud.

5 key stats about IRS audits and income levels

You filed your taxes, and you honestly tried to do them correctly, but you're worried. What are the odds you're going to get audited? Did you make any mistakes that could trigger an audit, even if you made them honestly? Is the IRS going to come calling sooner rather than later?

These are all concerns that a lot of people deal with during tax season, and they can generate quite a bit of stress. To help you see the real picture, here are some key stats from the IRS Data Book:

Will Earned Income Tax Credit claims result in an IRS audit?

For most people, filing taxes is a frustrating technicality each year with the potential benefit of a refund check. However, for a small percentage of people, tax season doesn't just culminate in the acceptance of your tax return. It results in a pending audit.

Few things in life are as stressful and terrifying as the process of getting audited by the IRS. Are they reviewing this year, or several previous years, too? What kind of financial records are you going to need to provide? No matter your income or your risk level, if you are facing an IRS audit, you want the advice and help of an experienced tax and audit attorney.

Don't let divorce put you in the crosshairs of an IRS audit

As you are aware, divorce changes many aspects of your life. While you may think that you have prepared for most of the changes your new status as single has brought, you may be overlooking a major transition - your status as a taxpayer.

The Internal Revenue Service anticipates that many American taxpayers may understandably be confused about their new filing status and prepared a publication regarding tax consequences for divorced individuals. To avoid getting audited, below are some salient points to remember when filing your 2016 taxes.

How to avoid being targeted for an audit by the IRS

There are few life experiences that inspire as much fear as learning that you are being audited by the Internal Revenue Service. While only one percent of the tax returns filed by taxpayers in the United States get flagged for audits, when you are in that number, it can be seriously uncomfortable. It's definitely not the elite one percent group to which anyone aspires to belong.

But it's also not the end of the world. Before you go into panic mode and worry that this year will be the year they come for you, take a few deep breaths and relax. Then read the tips below to minimize your chances of submitting a return that will warrant a closer look from the feds.

3 reasons not to fear the Internal Revenue Service

Many people fear the Internal Revenue Service auditing them, and as an independent, single woman, you might not know what to expect if you are asked to go through an audit, too. You have a right to work with an attorney while this process is taking place, but understand that the IRS isn't accusing you of any crime. Instead, it's trying to make sure that any mistakes that have been made can be corrected.

Three tips to avoiding self-employment tax pains

The holidays are often the favorite season of many around the country. After the holidays rest a four-month long season that is a favorite among tax professionals - tax season. While it is an opportunistic time of year for everyone in the tax industry, it is often loathed among independent contractors and the self-employed.

Individuals who are self-employed often dread tax season because it is finally the time of year to pay up on Social Security and Medicare taxes, which are calculated near a rate of 15 percent of income throughout the previous year. No matter if you're self-employed or a W-2 employee, taxes are an obligation we must pay.

You must report offshore accounts in your tax return

It may not seem intuitive to report income from foreign countries and accounts in a U.S tax form, but it is required by law. You must include all income, wages, and interest from the year, even those earned in offshore accounts. Doing so does not necessarily mean that you will owe taxes on your offshore accounts, but avoiding/refusing to include them on your tax returns is very serious.

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