Understand Common IRS Audit Issues and How to Avoid Them
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According to IRS tax gap studies, small businesses account for the largest segment of the $458 billion annual loss in tax revenue to the US Treasury, largely due to the underreporting of income and overstating of credits and deductions. As a result, the IRS field audit resources focus much of its audit activity on small businesses.
This CPE course will look at the top 10 issues small businesses face when undergoing an IRS audit. It will take a look at the audit from three perspectives, 1) the client, 2) the practitioners and 3) an IRS auditor. We look at these common issues along with ways to maneuver around the issues when the IRS brings them up. After this webinar, you should have a better grasp of helping your client through the most common types of IRS audit problems that you will face.
- Overview of IRS Audit Process and Steps.
- The IRS's interested in small businesses.
- The IRS field audit process.
- The top ten small business audit issues/targets.
- Best practices in dealing with an IRS small business audit, including steps to prepare for the audit.
- Recognize how to explain the Top 10 IRS audit focus areas for small businesses.
- Describe common items that should be in an M-1 Account.
- Understand strategies to find issues in your GL before meeting the auditor.
- Understand how to manage personal items in GL.
- Understand issues faced by S Corps and C Corps if assets are not registered in their name.
- Determine how poor records can lead to additional audits.
- Differentiate between S Corp AAA vs. AE&P.
- Understand various applicable penalties and possible resolutions.
- Determine how and when to go for an appeal.
Credits and Other information:
- Recommended CPE credit – 1.0
- Recommended field of study – Taxes
- Session Prerequisites and preparation: None
- Session learning level: Basic
- Location: Virtual/Online
- Delivery method: Group Internet Based
- IRS Course ID: PJGWS-T-00066-23-O
- Attendance Requirement: Yes
- IRS Course ID: PJGWS
Who Will Benefit:
- Enrolled Agents (EAs)
- Tax Professionals
- Other Tax Preparers
- Finance professionals
- Financial planners