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…

The Biggest Loser is a TV show where contestants attempt to lose the most weight for cash prizes. Full Disclosure: I don't watch the show and I have only seen short clips of it. I don't proclaim to fully understand the show. It appears to me however the biggest loser has nothing to do with losing weight. It's the self-employed in Connecticut. They are losing far too much to income taxes. And they certainly aren't getting any cash prizes for it. For this discussion, the self-employed include sole proprietors, single member limited liability companies ("LLC's) and partners in partnerships. It does not include owners of "C" Corporations or Subchapter S Corporations.

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1) Visit the Connecticut Department of Revenue Services Website

2) Call the Department at (800) 382-9463 (within Connecticut but outside Hartford area) or at (860) 297-5962 (from anywhere) from 8:30 AM to 4:30 PM

3) Visit the Department in Hartford

4) Go to local public libraries, town halls and post offices during tax season

ACTION ITEM: Connecticut taxpayers have several sources to access the forms they may need. Better act fast…April 17 will be here before you know.

Thomas F. Scanlon, CPA, CFP®

Do you file a Schedule C, Profit or Loss From Business or Schedule E, Supplemental Income or Loss (From Real Estate or Partnerships)? If so, you will notice there are 2 simple questions that have been added to these forms. They are:

“Did you make any payments that would require you to file Form(s) 1099?”

“If “Yes,” did you or will you file all required Forms 1099?”

While these questions may seem immaterial, they deserve to be examined closer.

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The IRS has published 10 tips to help you choose a paid tax preparer to file your return this year. Even if a return is prepared by someone else, the taxpayer is legally responsible for what’s on it. So, it’s very important to choose your tax preparer carefully. Here are the IRS’s top ten tips to keep in mind when choosing a tax return preparer:

1. Check the preparer’s qualifications. New regulations require all paid tax return preparers to have a Preparer Tax Identification Number. In addition to making sure they have a PTIN, ask if the preparer is affiliated with a professional organization and attends continuing education classes.

2. Check on the preparer’s history. Check to see if the preparer has a questionable history with the Better Business Bureau and check for any disciplinary actions and licensure status through the state boards of accountancy for certified public accountants; the state bar associations for attorneys; and the IRS Office of Enrollment for enrolled agents.

3. Ask about their service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers.

4. Ask if they offer electronic filing. Any paid preparer who prepares and files more than 10 returns for clients must file the returns electronically. More than 1 billion individual tax returns have been safely and securely processed since the debut of electronic filing in 1990. Make sure your preparer offers IRS e-file.

5. Make sure the tax preparer is accessible. Make sure you will be able to contact the tax preparer after the return has been filed, even after the April due date, in case questions arise.

6. Provide all records and receipts needed to prepare your return. Reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items.

7. Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.

8. Review the entire return before signing it. Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.

9. Make sure the preparer signs the form and includes their PTIN. A paid preparer must sign the return and include their PTIN as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return. The preparer must also give you a copy of the return.

10. Report abusive tax preparers to the IRS. You can report abusive tax preparers and suspected tax fraud to the IRS on Form 14157, Complaint: Tax Return Preparer.