Penalty abatement from the IRS?

Due to COVID-19, the due date for filing your 2019 tax return was postponed to July 15, 2020. If you didn’t request an extension of time to file or send in your tax return by July 15, the IRS may charge a failure to file penalty. If you didn’t pay your taxes by July 15, the IRS…

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Basic steps to start a new business

Understanding the tax responsibilities that come with starting a business venture can save you money and help with success. Choose a business structure The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are: Sole proprietorship: An unincorporated business owned by an individual. There’s no distinction between…

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The separation of accounting duties

There are three functions of the accounting process that should be performed by different individuals: the recording of transactions, the authorization of transactions, and the custody of assets. As an example, when writing a ministry check, the functions of printing the check (recording), signing the check (authorization), and reconciling the bank statement (custody) should be…

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Safeguard against Church Embezzlement

One of the last places you would expect embezzlement is within the financial offices of a Church. However, if you search the news for “church embezzlement”, you will find it is actually becoming a very common event. Many of these stories begin with a financial crisis. An employee has a mortgage that can’t be paid,…

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How the 90-Day Mileage Log Rule Works

Often in an IRS audit, the examiner will ask for your mileage log at the beginning of the audit. If you do not have a mileage log, then you are in danger of losing more than just vehicle deductions. Think about it. If you don’t have a log for mileage, what is the IRS examiner…

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How to Survive an IRS Audit

An IRS audit can be a very frustrating process. With that said, it is important to understand that it is nothing personal. In other words, it is not as if this particular IRS agent singled you out and decided he or she wanted to audit you. Therefore, try to stay calm and keep in mind…

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How to Avoid a Tax Audit

Besides flagrant errors and intentional lies, four innocent mistakes often attract the attention of the IRS or your state. Should you make one of these mistakes, you need an “audit trail” and filing record ready to prevent the initial investigation from becoming a full-blown audit. Let’s cover the red flags first and disaster prevention second….

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IRS Looking For Taxpayers Who Pad Their Tax Deductions

It’s tax time. For those who might think, “I’ll add a little here, maybe add a little more there … nobody will notice, right?” Well, the IRS is looking harder at deductions and is warning taxpayers to avoid the temptation of falsely inflating deductions or expenses on their returns to under pay what they owe…

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7 Steps to Avoid a Tax Audit

One of the most dreaded outcomes of filing your taxes is receiving notification that the Internal Revenue Service would like to administer a tax audit on you. In the simplest terms, a tax audit is an examination of your tax returns to verify that your income and deductions are accurate. The IRS examines your tax…

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Beware – Clergy Audits are on the Rise!

During tax season and throughout the year, IRS agents carefully review every tax return that comes across their desks. However, agents take a second glance if they catch something on a return that seems abnormal. These categories often include charitable contributions, ministry expenses reported on form 2106, SE income, IRC 265 and other business expenses.  This…

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