Hot IRS Tax Examination Issues for Individuals and Businesses (EXIB)

Overview

The Inflation Reduction Act increased the IRS budget. As a result, the IRS continues to replenish its audit workforce. The IRS trains its audit workforce by examining the tax returns of individuals and small businesses. Now, more than ever, Accounting, Tax, and Financial Professionals need clients to understand the need for documentation and procedures to substantiate what IRS examiners are pursuing. Learn the high audit risk areas and ways to help clients survive an IRS audit with little or no change. It is critical for Accounting, Tax, and Financial Professionals in public accounting to understand the risk to clients and to themselves in tax return preparation and planning since the IRS continues to increase its audit coverage and is examining more taxpayers than it has in the recent past.

Major Topics:

• Prepare now and protect yourself from new audit examinations
• What to do when there is tax-related identity theft
• Understanding substantiation requirements for travel, charitable contributions, vehicles, meals, virtual currency considerations, and tax-related identity theft
• Gaining an in-depth understanding of IRS hot examination issues including passive loss rules, real estate professional status, and the Section 199A provisions as they pertain to rental real estate
• Identify how the IRS holds persons other than an employer liable for unpaid payroll taxes, a.k.a., the trust fund recovery penalty
• Understanding IRS Audit Techniques Guides and Compliance Campaigns
• Recognizing the 30-day letter and the 90-day letter, including what the taxpayer’s responsibilities are

Learning Objectives:

• Understand what the IRS is focusing on when auditing individuals and selected businesses
• Identify the hot examination issues that the IRS is focusing on to help clients reduce their exposure to additional tax assessments
• Determine strategies for dealing with IRS examiners and presenting your clients’ tax positions in the best light possible