Personal Returns

Failure to file and Failure to pay (by far the largest percentage of audits) – Reasons:

Taxpayer filed his tax return late

Taxpayer received W-2s or 1099s and failed to file a tax return

Taxpayer has an active credit history but does not declare income nor file tax returns

Earned Income Credit – Low income taxpayer is claiming dependents in order to receive money from the government. Taxpayer must provide school and health records of the child

Taxpayer fails to declare investment income when he has received form 1099

Taxpayer declares investment losses several years in a row

Taxpayer takes deductions for household and child care but fails to furnish form 1099 to contractors/employees

Taxpayer declares losses several years in a row

Taxpayer claims large amounts of medical expenses relative to his income

Taxpayer declares large casualty losses when he is not in a disaster area

Taxpayer has deposited large amounts of cash in his bank accounts and has not filed a tax return

Taxpayer declares large charitable contributions relative to income several years in a row and he has not received any form 1098s

Taxpayer declares mortgage large interest deductions and has not received form 1098 from lenders


Business returns

Failure to file and failure to pay (by far the largest percentages of audits levied by the IRS)
(most common) taxpayer takes large deductions for labor and does not provide contractors with form 1099

Taxpayer officers do not take salaries

Taxpayer continues to declare heavy losses several years in a row without showing any profitable years

IRS feels the taxpayer is not declaring revenues relative to expenses

Taxpayer makes large bank deposits and fails to file a tax return

IRS may believe the taxpayer is taking pension deductions yet fails to fund its pensions

IRS may believe the taxpayer is overstating revenue in order to receive credit

IRS may believe the taxpayer is taking large bogus deductions in order to avoid tax

phone: 954-612-8899


Address: 2159 Wilton Drive

                 Wilton Manors, FL  33305

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