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By Michael S. Anderson of Anderson Tax Law logo for Arizona tax attorney Michael S. Anderson P.C.
  • Tax Debt as a result of IRS Audit? Do I have options?

    The result of an IRS audit is often a balance due.  We are often asked several questions at the end of an Audit as a result.  Questions like: Will the IRS accept an amount less than what I owe and forgive the balance? Will the IRS agree to a payment plan? Will the IRS place…

  • After the IRS Audit – A Basic Guide

    IRS Audit – Some Background In order to make sure that Arizona taxpayers follow the law, the IRS conducts audits on a certain percentage of us each year.  The IRS has several methods to determine who gets selected.  The most common are: The Discriminate Information Function – A computerized scoring system Infection Audits – The…

  • IRS Audit? How long does the IRS have to complete an audit once started?

    The IRS cannot assess additional debt based on a tax return if three years have passed from the Tax Return’s original filing date.  See 26 USC Section 6501 – Limitations on assessment and collection “Except as otherwise provided in this section, the amount of any tax imposed by this title shall be assessed within 3…

  • IRS AUDIT? LOST RECORDS AND RECEIPTS? Don’t Lose Hope. The Cohan Rule May Be Your Hero

    If you are self employed, you probably don’t like the process of maintaining receipts and other proof that you actually paid the business expenses. Bookwork is no fun. Many people who are self employed find it so boring to keep records that they haven’t done it for years. The problem with this “rears” it’s head…

  • IRS Adjusted Your Return? – You may only have 90 days to challenge it

    IRS adjusted your return? If so, 90 is an important number. It is the time frame i.e. the number of days the law thinks you should be given to respond to an IRS Notice of Deficiency. The IRS Notice of Deficiency is issued as a result of the IRS making an adjustment to your return that…

  • When the IRS audits, adjusts or files a substitute tax return, pay close attention to deadlines

    IRS Audit?  Pay close attention to deadlines, they mean something A great number of Americans owe the IRS at any given time.  Some estimates are as many as 10-15% of all taxpayers owe…right now.   The most common reason I see a consumer owing tax, is the most obvious one; the taxpayer just didn’t withhold…

  • IRS Audit – How long do I have to worry about it?

    As a general rule, your tax return can’t be audited after three years from it’s original filing date. If you filed before the due date of April 15, the 3 years starts to run from April 15 of the year it was due. There are some exceptions of course: 1. If you understate your income…

  • Important IRC Sections for those with Tax Debt, Late Tax Returns and an Audit Phobia

    There are three sections of the Internal Revenue Code that are of special significance for taxpayers who are late in filing the tax return, late in paying the tax return or who are concerned about an audit. Section 6511 of the IRC The 3 year refund statute. This statute allows the IRS to keep your…

  • Independent Contractor designation and the problems it can cause for your small business

    Employment tax law requires the employer to withhold the employees’ fica tax, unemployment tax and income tax from the paycheck, throw it in a pot, mix some more money into the pot equal to the employee’s fica tax and shoot the whole thing over to the IRS each quarter. This process requires a lot of…

  • Small business and IRS audits – What they are looking for and how to prevent problems

    IRS Audit and Your Small Business Face it…The Government is at odds with small businesses in America.  Money “belongs” to the government first right?…and small businesses move around alot of it. This makes the government uncomfortable, just like you would be if you asked your small child to watch your stash of bills. Thus, the…