Substantiating business expenses is a common problem for many businesses going through an audit with either the Internal Revenue Service (IRS) or the Minnesota Department of Revenue (MDR). In previous blog articles, we addressed the four steps (step 1, step 2, step 3, step 4) to substantiating most business expenses. This article will focus on [...]
Substantiating business expenses is a common problem for businesses going through an audit with either the Internal Revenue Service (IRS) or the Minnesota Department of Revenue (MDR). In previous blog articles, we addressed the first, second, and third steps of a four step process in an IRS or MDR substantiation audit. This article will [...]
Substantiating business expenses is a common problem for many businesses going through an audit with either the Internal Revenue Service (IRS) or the Minnesota Department of Revenue (MDR). In previous blog articles, we addressed the first and second steps of a four step process in an IRS or MDR substantiation audit. This article will focus [...]
Substantiating business expenses is a common problem for many businesses going through an audit with either the Internal Revenue Service (IRS) or the Minnesota Department of Revenue (MDR). In a previous blog article, we addressed the first step of a four step process in an IRS or MDR substantiation audit: proving the payment of expenses. [...]
Federal and state courts continue to evolve as technology evolves. The United States Tax Court is no exception. The United States Tax Court is now using an e-filing system for filing and serving documents rather than requiring petitioners to file and serve documents in paper form. Filing. In general, United States Tax Court Rules of [...]
This is the third post in the Frequently Asked Tax Questions in Family Law Cases series. This series is intended to answer questions family attorneys frequently ask us regarding tax issues. Question: Husband and Wife have an unpaid tax obligation from a prior year tax return in which they filed “Married filing jointly” status. The [...]
This is the first post in the Frequently Asked Tax Questions in Family Law Cases series. This series is intended to answer questions family attorneys frequently ask us regarding tax issues. Question: Each parent pays 50% of the child care costs to the provider. Can both parents take the tax credit for child and dependent [...]
Taxpayers and representatives often ask us: how long does the IRS have to make changes to an individual income tax return and assess additional taxes? Another way to phrase this question is: how long is the IRS’s “statute of limitations on assessment” for individual income taxes? In most cases, the answer is that the IRS [...]
One of the most critical issues a taxpayer can face during an IRS audit is deciding what information to provide to the IRS. The IRS will typically request information either informally through an Information Document Request (IDR), or formally through an Administrative Summons (Summons). Deciding how to respond can depend on which type of request [...]
Substantiating business expenses is a common problem for many businesses going through an audit with either the Internal Revenue Service (IRS) or Minnesota Department of Revenue (MDR). The IRS and MDR have expectations of what they believe to be proper record keeping. Meeting these expectations can be difficult and the requirements can vary depending on [...]