Audit Practices
Not what you're looking for?
Identify a profile for a taxpayer who is more likely than the national average to be audited by the IRS. What factors cause certain taxpayers to be audited more frequently? What actions should taxpayers and the IRS take to ensure fairness and equality? Explain.
Purchase this Solution
Solution Summary
The expert examines audit practices for taxpayers.
Solution Preview
A tax payer who will get audited typically claims additional deductions that the tax payer is allowed to claim. Also, the tax payer may add more money to their charitable donations. In 2010, there was approximately 1.1% (1,500,000) of the tax filers that were audited. The audit rate increases to 12.5% for earners making $1,000,000 or more (an increase of 100% as compared to 2009 tax year).
The tax audit is set off by the following items: charitable contributions, employee business expenses and vehicle expenses. Another set off is no reported business income but high deductions for business and rental schedules. Also, tax audits are set off by a tax filer's tax return not ...
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.