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1-1 Accounting Method ........................... 1-2 Books and Records ........................... 1-2 Bank Deposit Analysis ....................... 1-3 Other Possible Third Party Sources .......... 1-4 Expense .......................................... 1-5 General Information ......................... 1-5 Subcontractors/Consultants .................. 1-6 Employment Tax .............................. 1-6 Legal Fees .................................. 1-9 CHAP.
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S-Corporations FAQ
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An IRS audit is a review/examination of an organization's or individual's accounts and financial information to ensure information is reported correctly ing to the tax laws and to verify the reported amount of tax is correct.
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The IRS Market Segment Specialization Program (MSSP) publishes various guides for use by IRS employees conducting audits and as information for taxpayers and practitioners. Provides examiners with specific guidance on potential audit issues, issue identification and lead sheets and other job aids.
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The Market Segment Specialization Program (MSSP) is an Examination program created by the Internal Revenue Service under the umbrella of Compliance 2000.
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Some red flags for an audit are round numbers, missing income, excessive deductions or credits, unreported income and refundable tax credits. The best defense is proper documentation and receipts, tax experts say.
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While the overall chance that your return may be audited is a scant 0.4%, those numbers jump dramatically for both the highest and lowest earners. If you have no total positive income, for example, the chance your return is audited jumps to 1.1%.
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The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or at the taxpayer's home, place of business, or accountant's office (field audit). Remember, you will be contacted initially by mail.
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The Market Segment Specialization Program (MSSP) is an Examination program created by the Internal Revenue Service under the umbrella of Compliance 2000.
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The Ministers Audit Techniques Guide is intended to provide guidance to the examiner who is auditing a taxpayer who is a minister and to provide tax related guidance to taxpayers and other professionals in this industry.
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