Maryland business owners may not like the thought of an IRS audit. In addition to the time needed to resolve the matter, a company could owe more money to the government. However, it is important to remain calm and polite throughout the process, and it is rarely a...
Audits
IRS sends notices for many different reasons
For most Maryland residents, the idea of taxes becomes important once or twice each year, then it moves to the background again. Following filing though, a few people in the state can expect letters from the Internal Revenue Service. Getting a letter from the IRS is...
Taxes and tip boxes
Taxpayers in Maryland who receive tips as compensation for their services should be aware of the Internal Revenue Service Chief Counsel Memorandum regarding cash payments issued from tip boxes. According to the IRS, the company in question had people on its premises...
How to reduce the odds of a tax audit
Maryland residents and Americans across the country have an average odds of 1 in 160 of having their tax returns audited. The number increases to 1 in 23 for those who make over $1 million a year. Those who make less than $200,000 have a lower than average chance of...
The effects of declining IRS audit rates
Many taxpayers in Maryland are perpetually concerned about the potential of an IRS audit, even when they've taken care to file everything correctly. Statistics show that the overall audit rate of the tax agency is continuing to decline and that this decrease is...
How to prepare for an IRS audit
Due to the recent tax reform legislation, companies in Maryland and throughout the country could face a greater IRS audit risk. Some businesses will have had a greater incentive to accelerate deductions in 2017 and defer income to 2018. This could be seen by the IRS...
What to do after hearing from the IRS
When Maryland residents have their tax returns accepted by the IRS, it doesn't mean that there weren't any errors. In a given year, millions of people will receive a notice from the IRS, and mistakes could lead to an individual paying more to the government. However,...
Common tax mistakes that increase the risk of an audit
Most Maryland taxpayers dread the thought of getting audited by the Internal Revenue Service. While the risk of being audited is relatively low, experts say there are a few innocent errors that could increase a person's chance of landing in the audit pile.For example,...
Causes of IRS audits
The probability that Maryland residents will be audited by the Internal Revenue Service is pretty low. In fact, less than 1 percent of all tax returns will be selected for an audit. However, there are certain types of entries on a return that may compel the IRS to pay...
What may cause the IRS to issue an audit
Fewer than 1 percent of all tax returns in Maryland and throughout the country are audited by the IRS each year. However, some types of returns are more prone to audits than others. For instance, those who have a high income are more likely to get audited because a...