IRS "Red Flags" and Penalties:
Foodman CPA's Compliance Matters
MARCH 2016
In This Issue
  • Did You Know That There Is an I.R.S. Penalty for Lack of Accuracy?
  • "Red Flags" to the I.R.S.' Agent and Examiner

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DID YOU KNOW THAT THERE IS AN I.R.S. PENALTY FOR LACK OF ACCURACY?

It is widely known that the tax system in the U.S. is highly complex. Nonetheless, not knowing the law is not an excuse for not complying with the law. The government has several tools at its disposal to help encourage voluntary compliance. Here is the bottom line: If the I.R.S. learns that you: have understated income, took improper tax deductions or credits, or had an inaccurate tax return - You will get a TAX BILL. 

Don't be a victim of your own making. Be informed as to what these penalties are and how best to avoid them.
 

"RED FLAGS" TO THE I.R.S.' AGENTS AND EXAMINER

Most Tax returns are ignored by the I.R.S. primarily because I.R.S. is short on personnel and funding. Nonetheless, according to a report from Kiplinger, the chances of being audited by the I.R.S. increase substantially, if you have foreign assets, the types of deductions or losses that are claimed, as well as income levels. 

Read on to learn about some of the more important considerations of an I.R.S. audit.