The IRS began replenishing its workforce with the additional funding from the Inflation Reduction Act only to have to terminate workers or lay them off due to mandated federal workforce reductions. The IRS trains its audit workforce by examining the tax returns of individuals and small businesses. As the IRS continues to examine tax returns, 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.
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
- Determine if your client is a victim of tax-related identity theft
Major Topics
- Criteria that the IRS uses to select returns for examination
- Recognizing the 30-day letter and the 90-day letter, including what the taxpayer’s responsibilities are
- 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
- Distinguishing an S corporation officer’s reasonable compensation issues
