What to Do During an IRS Audit – The Do’s and Don’ts

Time is on YOUR side
with Good IRS representation

Here are some of the penalties you may face if the IRS audit gives you any trouble:

• 20% Penalty: Usually associated with under or overvaluation of property, disregard of IRS polices & regulations, a substantial understatement of your tax liability, or general negligence.
• 75% Penalty: As you can tell by the large increase in percentage, this is a much more serious issue and can create some serious IRS troubles. Often related to tax underpayments due to fraud, if the IRS believes any portion whatsoever of your payment is fraudulent, you will have to come up with the records that show otherwise. If you cannot do this, then the entire underpayment is hailed as fraudulent, stacking on the hefty 75% penalty.
• Interest Due: Interest accumulates from the due date of your return; this includes extensions, until the date where your penalty is paid. This is for violations that include: negligence, failure to file on time, over or undervaluation of property, and fraud. Penalties that do not include that list will not have any interest charged whatsoever, as long as you pay off the imposed penalty within 21 days and the penalties are under $100,000.
• Prison: The most serious of IRS troubles is the possibility of going to prison, the big bird house. This happens for the most serious cases of tax crimes such as tax evasion. If you get convicted, expect to also accrue much larger fines and be ready to give up all assets and property along with your possible incarceration.

As you can see, running into IRS troubles is a big deal. The best way to handle any IRS audit is to put it into the hands of a trained professional. If any of the above scares you (such as the idea of possibly going to prison), then it is time to hire good IRS representation, such IRS representation can be easily had by calling GBC Atlanta Tax Income Services today.

Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!
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• GBC Tax Offer Atlanta Experienced IRS Representation
• Tax Requirements By State
• Visit the Internal Revenue Service's Website
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Deducting Miles For Business, Medical, Moving & Charity

Your accountant or CPA can
help you find all your
legitimate deductions

Exactly how much can you deduct? 

For 2014, the standard mileage rates for the use of an automobile (which includes cars, vans, pickups or panel trucks) in cents per mile are:

         56 c/mi for business miles driven

         23.5 c/mi driven for medical or moving purposes

         14 c/mi driven in service of charitable organizations

The rates for business, medical and moving expenses will be different for the 2015 tax year since those rates are adjusted each year – expect to see those updated numbers reported here in December 2014. However, as the rate for charitable expenses is fixed by statute, it can only be changed by Congress so that number will likely sit tight at 14 cents just like it has since the Clinton era.

READ MORE >> FORBES.COM: "Back to School 2014: Deducting Miles For Business, Medical, Moving & Charity"

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•     About GBC Services
•     GBC Audit Services Website
•     Visit the Internal Revenue Service's Website

Beware of Scams by Phony IRS Agents

Crooks use the 1040 season
to access your personal and financial
information.

The official method of correspondence by the IRS and local or state tax offices is U.S. Postal Service-delivered letter. If you initiate contact by phone call or email, you may get a response that way. But the IRS rarely makes unexpected phone calls or sends unsolicited emails, faxes or text messages.

If the message arrives by email or text, you may be asked to click on a link for more details. Don't. That can install "malware" programs in your computer to give the crooks remote access to your files and passwords or even let them take control of the device. This year, new ploys include:

• Bogus claims that you can get $80 for completing a customer survey for the IRS. The message asks for personal and financial information that can be used to steal your identity.
  
• Fictitious promises of refunds or rebates based on excess or withheld Social Security benefits or for the expired Economic Recovery Credit Program or recovery rebate credit. Each of these scams requests your SSN and other personal info.
• False claims that you can use Treasury Form 1080 to transfer funds from the Social Security Administration to the IRS, enabling a payout to you from the IRS.
• Offers of "free money" from the IRS or other government agencies. These lies circulate in flyers posted at churches and other gathering spots, and also in online advertisements. They often imply that tax credits or refunds are available without proof of eligibility.

READ MORE >> AARP.ORG: Don’t Get Scammed by Phony IRS Agents

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For All Your Accounting Needs Call GBC 678-366-9232

Free Income Tax Calculator

Be prepared this tax season with
good planning and a good accountant

Estimate your income tax return free of charge. These free online income tax calculators help you to estimate your federal tax liability ahead of time.

Take measures to ensure there is no unexpected surprise when it comes time to file your tax return and pay your taxes. 

Estimating your tax liability ahead of time can dramatically reduce your anxiety and stress during the tax season. It allows you to quit worrying about what your tax bill will be and focus on meeting your financial obligation. You can then prepare your tax return without that stress hanging over your head.

READ MORE >> INCOME.TAX.CALCULATOR.COM: Income Tax Calculator 2014 - 2015

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For All Your Accounting Needs Call GBC 678-366-9232

Common Misconceptions About State Income Taxes

Understand your state income tax
with the help of an accountant

State income taxes are complicated, especially when each state has their own way of doing things, and this complicated web of differing tax rules can lead to a lot of misconceptions.

Don't fall for these seven common myths about state income taxes this year:

• Myth 1: I only have to pay income taxes to the state I live in.
• Myth 2: State income tax rules are the same as federal tax rules.
• Myth 3: State income taxes are unconstitutional.
• Myth 4: I have to pay income taxes to the state where my employer is located.
• Myth 5: I don't have to file a return in a reciprocal state.
• Myth 6: I got audited, and everything was fine. Therefore, I did everything right on my return.
• Myth 7: I don't owe taxes because I live or work in a state without an income tax.

READ MORE >> TAXES.ABOUT.COM: Seven State Income Tax Myths

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•     About GBC Services
•     GBC Audit Services Website
•     Visit the Internal Revenue Service's Website

The Basics of Hiring an Accountant

It is essential to procure services
from a quality preparer to ensure a
successful tax plan for your future.

Finding an accountant to prepare your taxes is a relatively straightforward process.

The task is of average difficulty and should require one to two hours of your time. Creating a tax plan for your future is important; consider seeking out the advice of a licensed tax professional, such as a Certified Public Accountant or an Enrolled Agent.

Here are some basic tips for hiring an accountant:

1. A CPA is a professional accountant licensed by the state. Best for corporate accounting, tax audits, and business consulting.
2. An Enrolled Agent is a tax professional licensed by the IRS. Best for complex tax issues, tax audits, and responding to tax collectors.
3. A Tax Preparer may be registered by the state. Best for straightforward tax returns.
4. The national Tax Franchises are H&R Block, Jackson Hewitt, and Liberty Tax. Offices nationwide. Often fast, courteous, and convenient.
5. Expect to pay from $150 to $450, depending on how complicated your tax return is.

READ MORE >> TAXES.ABOUT.COM: How to Find an Accountant
 
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For All Your Accounting Needs Call GBC 678-366-9232

Paying Tax Later Usually Better Than Paying Now

Your accountant or CPA
can help you with your tax planning.

Deciding whether you are better off with 2013 v. 2014 income can itself be imprecise.

How can you figure what to buy, receive, pay, settle or deduct before the end of the year?

Conventional wisdom says you should accelerate tax deductions and defer income. Thus, paying tax later is usually better than paying now. That means you should delay income into January when you can, but get ready to crunch some numbers. Even if the tax system were static, the changes between 2013 and 2014 rates and rules—let alone the economy—make it tough. Add to that the many expiring tax provisions and you’ll find that calculators or software are all but essential.

READ MORE >> FORBES.COM: Compare 2014 v. 2013 IRS Tax Rates Before It's Too Late

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•     About GBC Services
•     GBC Audit Services Website
•     Visit the Internal Revenue Service's Website