Keeping Your Money and Peace of Mind Step 1 – Understanding Burden of Proof It’s important throughout the process of dealing with the IRS to know everyone’s rights and duties. The Restructuring and Reform Act of 1998 shifted the burden of proof from the taxpayer to the IRS in civil tax disputes. The “burden of...Read More

Bookkeeping is a technology that allows you to trace the flow of money through your business. Money enters your business through sales and exits via purchases of inventory and equipment, payment of wages and other expenses, and finally into your hands as your net profit. Even a very small all-cash business benefits from bookkeeping at...Read More

The sale of rental property may trigger capital gains tax or may generate a loss. Your taxable gain or loss is determined by subtracting the property’s adjusted basis on the date of sale from the net sales price. The net sales price is your sales price less commissions, closing costs, and fix-up expenses. Your adjusted...Read More

You can successfully deal with many  IRS notices yourself.  Many require only a simple response, such as sending the IRS additional information or paying taxes on Form 1099 income you forgot to include on your tax return. The following tips apply whenever you deal with an IRS employee in his or her official capacity. Read...Read More

“Why me???  Why is the IRS auditing me?” The IRS has limited resources. IRS management doesn’t want to spend $10,000 of their employees’ time to get $2,000 of additional tax.  Their performance is monitored by the Treasury Inspector General for Tax Administration and the IRS Oversight Board, and their budget must be approved by Congress....Read More

“I got an IRS audit notice. What should I do?” Audits You Can Handle Yourself Correspondence Audits can be very easy to take care of in some cases.  If the IRS asks you to send them additional information or to pay additional tax on unreported income, you may only need to send the information to...Read More