You have probably heard about someone being audited by the IRS, or have seen a movie based on this fact to know enough that you never want to be audited by the IRS. How can you stay under the radar and not catch the attention of the IRS? Watch a Northern Virginia tax attorney explain more about the auditing process in this video.
There are certain things to which the IRS pays close attention, including high contributions in proportion to your level of income, high independent contractor income, or if you have a Subchapter S Corporation which doesn’t reflect salary paid to officers. The IRS also looks closely at people who have a gross income from $100,000 to $200,000, those who file a Schedule C, and people with rental real estate properties. Additionally, the IRS recently conducted a program to monitor contractors over a three-year period in an effort to improve their enforcement techniques.
If you are in a contracting business or meet one of the above criteria, you should seek professional advice from a Virginia tax lawyer to minimize your chances of an IRS audit. Call the Sodowsky Law Firm today at 703.476.1176 to schedule your confidential consultation and case evaluation, or contact us online at http://www.sodowskylaw.com.