Does bankruptcy stop IRS audits?

Bankruptcy is a powerful tool in solving IRS problems – but can it stop the IRS from auditing you?
A centerpiece of bankruptcy law is the concept of an “automatic stay.”    The automatic stay stops creditors from calling and writing to enforce or collect a debt from you.  The “stay” on your creditors – including the IRS – [...]

IRS audits – how can you prove expenses without receipts?

Can you prove expenses in an IRS audit without receipts and checks? 
Thanks to the tax case of Cohan v. Commissioner,39 F. 2d 540 (2d Cir. 1930), the IRS will allow expenses even if receipts and checks are missing.
All you need is a reasonable basis to recreate the expense and credible testimony that you actually spent the money.
The Cohan case [...]

IRS auditor giving you trouble? Where else can you turn?

It is common to feel like you are not getting a fair shake from an IRS auditor.   Frustration mounts with perceptions that the auditor is unreasonable.  No matter what you do, the auditor cannot be satisfied.  You are told you owe money to the IRS, and you know you don’t.
There is good news – [...]

Face to face with IRS agents: Who’s who?

If you find yourself in an IRS pickle, there are three IRS employees you are most likely to come face to face with.  Those are Revenue Officers, Revenue Agents and Special Agents.  Here is what to expect from each:
An IRS Revenue Officer is in collection enforcement. Often, the first contact you will receive from a [...]

Reopening IRS audits – are they really final?

I have seen a stream of new calls from readers who went through an IRS audit and are receiving IRS collection notices for amounts they probably do not owe.
Although they disagreed with the audit, they did not understand the need to take the dispute to IRS appeals or Tax Court.  As a result, the audit [...]

IRS is hiring auditors and collection agents – enforcement to increase

The IRS is hiring revenue agents (auditors), revenue officers (collectors), and special agents (criminal investigators).  This has been made public by the IRS, but I attended a joint conference with the IRS last week in which every IRS panelist – from IRS auditor managers to taxpayer advocates to senior IRS attorneys – confirmed the trend [...]

Four ways to handle disagreements with IRS auditors

A common problem with IRS audits is not seeing eye to eye with the auditor. The auditor sees the case narrowly, while you see the big picture.  You know you incurred that expense or did not have unreported income, but the auditor’s criteria is difficult to satisfy.
Here are some ways to get problem IRS audits [...]

Can the IRS continue to audit me year after year?

There are limits on the IRS continuing audits year after year.  These audits are known as “repetitive audits.” Their scope is limited by Internal Revenue Manual 4.10.2.8.5.  
The Internal Revenue Manual states that if you are contacted by the IRS, and had a similar issue examined by them in either of the two prior years, [...]

What if I am audited by the IRS but my recordkeeping is poor or my records are lost?

Since I often help clients close out IRS audits when their records are lacking, I thought it was time to answer this question: 
I recieved a letter to meet an auditor from the IRS to audit my 2005 – 2007 taxes. My house was broken into several times, and I don’t have any of my paperwork [...]

Can the IRS conduct a collection interview at your house or business?

IRS Revenue Officers continue to become more aggressive in the field. Here is a new approach to look for:
I had a recent case in which a Revenue Officer sent my client a notice stating that that there would be an interview at my client’s house.  These meetings usually take place at an IRS office.  It [...]

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