On TLC's What Not to Wear Stacy and Clinton give a 'make over' to some lady that is, well…not dressed so well… Taxpayers that are being audited need to make sure they are putting their best foot forward right at the start of an IRS audit.

Field, Office and Correspondence Audits

The first thing a taxpayer needs to understand is The Difference Between an IRS Field Office and Correspondence Audit. If it is a correspondence audit, it doesn't matter how you are dressed. All of the communication with the IRS will be done through the mail. It appears that more audits will be correspondence audits due to the IRS wanting to allocate its resources. Depending on the situation, this may not be in the taxpayer's best interest. They may actually prefer to meet with the IRS to, "tell their story." You should carefully review your situation with your CPA to see if meeting the auditor would make more sense. more…

January 31, 2011 is the deadline to furnish Form 1099-MISC to recipients.  The 1099-MISC form is used to report more than two dozen types of payments that must be claimed as income by the recipient.  This category includes payments made by businesses as fees to attorneys, service providers, and freelancers.  Other types of payments covered by the 1099-MISC include reimbursement for auto expenses, awards and bonuses, commissions, prizes, and vacation allowances for nonemployees.  A payer of rents and royalties must also file this tax document. more…

January 31, 2010 is the deadline to furnish Form 1099-MISC to recipients.  The 1099-MISC form is used to report more than two dozen types of payments that must be claimed as income by the recipient.  more…