Low-Income Taxpayer Clinics: Helping Low-Income Taxpayers Level the Playing Field with the IRS
Low-income taxpayer clinics (LITCs) are programs that provide free or low-cost legal assistance to low-income taxpayers who are facing disputes with the Internal Revenue Service (IRS). Low-income taxpayer clinics, ... Desmond Hudson, EA, NTPI Fellow®
IRS to Review High Audit Rates for Black Taxpayers
The current climate regarding artificial intelligence and bias has been a hot topic for debate. It seems Black taxpayers are unfairly being targeted in a largely automated pro... Camari Ellis, EA
Representation Matters
During the 1700s, American colonies under British rule coined the phrase "taxation without representation." This opposition to being taxed without having a say in government was a major factor in the American Revolution. Today, there are still areas such as the District ... Tynisa (Ty) Gaines, EA (She/Her)
Correcting Partnership Returns After the Centralized Partnership Audit Regime
Practitioners who make or find errors on a filed Form 1065 for their partnership clients may find themselves in for a bit of a shock when it comes to correcting those errors. Congress passed the Bipartisan Budget Act (BBA) of ... David Woods, EA
State-Legal Marijuana Businesses and Taxes
2020 was a big year for the marijuana industry. As the COVID-19 pandemic led to shutdowns across the country, many states labeled their marijuana dispensaries as “essential businesses,” allowing them to stay open during the stay-at-home orders. Despite their “esse... Kasia A. Parecki, JD
Red Flags and Tax Audits in Cash-Intensive Businesses
Cash-Intensive Businesses A cash-intensive business is one that receives a significant amount of receipts in cash. Think of as many businesses as you can that deal in cash such as hair salons, pizzerias, restaurants, laundromats, ... Jo-Ann Weiner, EA, NTPI Fellow®
Indirect Methods of Proving Income
Did you know the IRS requires its agents to perform a minimum income probe on every audit? And did you know that a minimum income probe can result in the IRS agent using indirect methods of proving income? If you have a client who is being audited—and even if you don’t—it is to your advantage to learn everything you can about indirect methods of proving income. Minimum income probes are discussed as part of the examination process governed... Jo-Ann Weiner, EA
Why Clients Hire Us to Represent Them
ONEDAY. I was meeting with a revenue agent (RA), representing a client during an audit. The office was set up with cubicles, and it was easy to hear what was going on in the cubicle next to me. I happened to hear a taxpayer who was representing herself while another RA was raking her over the coals. The RA who was helping me went off to make photocopies as I heard this lady begin to sob. I mean, the RA was really handing it to her. I got u... Craig W. Smalley, EA
Preparing For The New IRS Partnership Audit Rules
Partnerships and entities taxed as a partnership, such as certain limited liability companies (LLCs), have become a popular entity choice for doing business over the past 50 years. This tax structure offers business owners significant benefits, including taxation at only the partner level. Another benefit that often goes unnoticed is that very few partnerships are audited by the IRS. Moreover, when the IRS engages in a partnership audit, t... Travis Greaves, JD, Josh Wu, JD