Income,Tax,Audits,The,Legal,In law Income Tax Audits in The Legal Industry of Chicago
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It seems as if Federal and State Income Tax Audits of professionals involved in The Legal Industry are on the rise. Numbers published by the Internal Revenue Service, showing the results of their enforcement activities, prove that not only the number of audits performed nationally but also the amount of money received by the IRS as a result of the audits have increased substantially in the past five years. We feel that this trend will continue to increase in the coming years due to the record deficits being generated by our federal and state governments.Please remember that the main functions of the Internal Revenue Service and the Illinois Department of Revenue are to collect taxes. They do this through enforcing the laws passed by Congress and the State of Illinois. If you are currently involved in an audit, the best thing that you can do is to get adequate representation. The job of The IRS and The IDOR is to enforce the law, and to collect as much tax as is legally allowable by law. They are very good at their job. Representing yourself in an Income Tax Audit simply makes it much easier for them to collect.There are many things to be concerned about in an Income Tax Audit. Probably the largest concern is the possibility of a charge of Tax Evasion. If it can be proven that your business took in more money than was reported on your income tax return, then there is the possibility of both criminal and civil penalties. In other words there is the possibility that you will not only have to pay additional tax, interest and penalty, but also that you will go to jail. Representing yourself substantially increases your risks.Another common mistake is simply not knowing what you are doing. Just because you think that you should get a deduction for something does not mean that it is legal for you to do so. No one with half of a brain cell has ever said that tax law was fair. It isn't. It is neither reasonable nor easy to understand. I just saw the results of an examination where the taxpayer tried to write off mileage for travel to and from his place of business. Uncle Sam does not give anyone a deduction for going to work. Its simply not deductible. In the taxpayers mind, it was an ordinary and necessary business expense that should have been deductible. He didn't even have a mileage log. We see this sort of thing every day on examinations that we don't handle.If you are a Lawyer, have a Legal Practice, or are any member of the Legal Profession of Chicagoland, and you are being audited, seek competent representation immediately. Call our offices today at (773) 267-7500. The Special Accounting Packages section of our website may have exactly what you need. We will review your case and provide a second opinion for as little as $500, or represent you starting at $1500. As highly recommended CPA's and Enrolled Agents, we have the experience you need to help you and your company. Call or e-mail Accounting Solutions today. For more information on Accounting and Taxation, our website is http://AccountingSolutionsLtd.com
Income,Tax,Audits,The,Legal,In