How the IRS uses information statements for compliance

The IRS gets almost 3 billion information statements (Forms W-2/1099, etc.) a year and uses them for compliance.  Here my AICPA CPA Insider article on the IRS information statement matching programs and how they work.

Keeping In-bounds with the IRS on NCAA March Madness Betting

My CPA Practice Advisor article on March Madness NCAA tournament betting – and its impact on your tax return.  Here are 5 tips on reporting gambling on your tax return.

Questionable education credits draw IRS interest

My H&R Block article about how the IRS is questioning education credits by using Forms 1098-T to match against tax returns in the CP2000 automated underreporter program.  The IRS asks for proof that the education expenses have been paid- this sounds more like an audit than an underreporter notice.  This is another example of the IRS questioning more returns using automation.  Here is what to do.

 

 

IRS more likely to question returns than taxpayers think

My article for H&R Block that provides the “real” IRS audit rate.  The media states the chance of an IRS audit is 1 in 143 – it is actually much higher because the IRS uses automated “audit” methods, like matching notices and return rejects.   The real “audit” rate is actually much higher – and because much of the process is automated, the IRS can maintain high rates of coverage – unlike the published “audit rate” indicates.

The new IRS “audit”: Upfront information-statement matching

My article written for H&R Block that shows the “new IRS” – that is, few audits, but use of the billions of information statements filed each year (i.e. Forms 1099/W-2, etc.) that the IRS can use for automated compliance.  Read the story here.

Form 1099-K and IRS audits/notices

The article is called “Red Letters.”   In 2013, the IRS started using Form 1099-K that reports merchant card transactions (like debit and credit cards) to match against business returns.  This matching program was the start of my problems for taxpayers.  The article explains the IRS compliance programs using Form 1099-K and what to do if you get a 1099-K IRS matching notice or audit.

1099-K matching, small business audits, and tax identity theft

My articles in CPA Practice Advisor on how CPAs can do better serving clients with tax problems, 1099-K matching issues in IRS audits/notices of small businesses, and IRS identify verification issues and advice to help clients.