Monthly Recurring Revenue Institute’s Post

An IRS audit letter can lead to serious consequences, especially if tax fraud or misrepresentation is involved. Understand the importance of experienced legal counsel to navigate an eggshell audit and protect your interests. #TaxAudit #EggshellAudit #TaxLaw #TaxAttorney https://hubs.ly/Q02CfmN10

An IRS audit letter can lead to serious consequences, especially if tax fraud or misrepresentation is involved. Understand the importance of experienced legal counsel to navigate an eggshell audit and protect your interests. #TaxAudit #EggshellAudit #TaxLaw #TaxAttorney https://hubs.ly/Q02CfdtL0

An IRS audit letter can lead to serious consequences, especially if tax fraud or misrepresentation is involved. Understand the importance of experienced legal counsel to navigate an eggshell audit and protect your interests. #TaxAudit #EggshellAudit #TaxLaw #TaxAttorney https://hubs.ly/Q02Cf5sx0

Important Changes to the IRS Voluntary Disclosure Program (VDP) The IRS has made significant updates to the Voluntary Disclosure Program (VDP), which allows taxpayers to disclose previously undisclosed tax issues without facing criminal prosecution. As tax professionals, it's crucial to understand these changes to effectively advise our clients. Key updates include: 1. Streamlined application process 2. Increased penalties for non-compliance 3. Stricter eligibility criteria The VDP offers benefits such as reduced penalties and protection from future audits. However, taxpayers must meet specific requirements and provide detailed documentation to support their application. Failure to participate in the VDP can result in severe consequences, including criminal prosecution and significant fines. As the IRS continues to prioritize compliance, staying informed about these changes is essential for providing the best guidance to our clients. What are your thoughts on these updates? How do you plan to incorporate this information into your client advisory strategy? #TaxCompliance #VoluntaryDisclosure #IRSUpdates #TaxPlanning #TaxAdvisory https://lnkd.in/eqpKUruR Get the latest TaxPro news via email: https://lnkd.in/enfg4BuU Pass the EA Exams: https://lnkd.in/emDt264J

An IRS audit letter can lead to serious consequences, especially if tax fraud or misrepresentation is involved. Understand the importance of experienced legal counsel to navigate an eggshell audit and protect your interests. #TaxAudit #EggshellAudit #TaxLaw #TaxAttorney https://hubs.ly/Q02Cf8k80

🚨 Attention Tax Pros! 🚨 Recent Tax Court decisions highlight the dire consequences innocent taxpayers face when their tax preparer commits fraud or errors. 😱 Key Takeaways: 1. IRS can extend the statute of limitations indefinitely for false or fraudulent returns 2. Taxpayers can be held liable even if the preparer orchestrated the fraud 3. Relying on tax software won't remove penalties unless incorrectly programmed 4. Taxpayers must exercise due diligence when selecting a tax pro To protect your clients: 1. Advise them to verify credentials and ask pertinent questions 2. Ensure they review contracts with preparers 3. Help them correct mistakes and file Form 14157-A if fraud occurs Stay informed and vigilant to navigate complex tax matters effectively! 💪 What are your thoughts on protecting taxpayers from preparer fraud? Share your insights below! 👇 #TaxPreparerFraud #TaxpayerProtection #TaxPro #TaxTwitter #TaxTips https://lnkd.in/espPPeje

🚨 𝑷𝒓𝒐𝒔𝒆𝒄𝒖𝒕𝒊𝒐𝒏 𝒇𝒐𝒓 𝑳𝒂𝒕𝒆 𝑻𝑫𝑺 𝑫𝒆𝒑𝒐𝒔𝒊𝒕: 𝑰𝒔 𝑰𝒕 𝑱𝒖𝒔𝒕𝒊𝒇𝒊𝒆𝒅? 𝑨 𝑵𝒆𝒆𝒅 𝒇𝒐𝒓 𝑹𝒆𝒇𝒐𝒓𝒎? 🚨 Recently, there has been a growing trend of TDS commissioners initiating prosecution proceedings against company directors, including those of MNCs, under Sections 276B and 278B of the Income-tax Act, 1961. 𝐓𝐡𝐞 𝐜𝐡𝐚𝐫𝐠𝐞? 𝐋𝐚𝐭𝐞 𝐝𝐞𝐩𝐨𝐬𝐢𝐭 𝐨𝐟 𝐓𝐃𝐒, 𝐞𝐯𝐞𝐧 𝐰𝐡𝐞𝐧 𝐭𝐡𝐞 𝐝𝐮𝐞 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐩𝐚𝐢𝐝. This aggressive application of these provisions raises several concerns: 1. Justified or Excessive? Is it fair to prosecute directors for minor, unintentional delays in TDS deposits that have already been rectified with interest? These provisions were likely intended for willful defaulters, not those who make timely corrections. 2. Need for Revision of Draconian Provisions It's time to revisit Sections 276B and 278B to introduce proportionality. Penal actions should target deliberate evasion, not mere procedural delays, especially when there’s no revenue loss. 3. Alignment with the Income-tax Act Review Initiative The Income-tax Department's current initiative for a comprehensive review, focusing on simplification, tax certainty, and reducing compliance burden, seems at odds with this harsh enforcement. Tax reforms should ease compliance, not punish taxpayers unnecessarily. 4. Pending Appeals & Financial Hardships With lakhs of CIT appeals still pending, does it make sense to add more to the litigation pile for minor defaults? Genuine assessees are already facing financial hardships due to these delays—shouldn’t the focus be on resolving these cases swiftly instead? #TaxReform #TDS #Prosecution #TaxSimplification #Compliance #DirectTax #IncomeTaxAct #IndiaTax #CorporateTax #charteredaccountants

Tax Fraud: A Preparer's Misconduct Can Haunt You Forever A recent Tax Court ruling highlights the importance of having a trustworthy tax preparer. In Murrin v. Commissioner, the Court (again) held that if a tax preparer commits fraud on a return, the client can be held responsible, even if the client didn't know about the fraud. This means that the IRS can pursue taxpayers for additional taxes owed, even if a tax return preparer committed fraud on a client’s return decades ago. That’s because the IRS can always pursue additional taxes on a fraudulent return. In Murrin, the preparer added false entries to the taxpayer’s (1993 through 1999!) returns without the taxpayers' knowledge. The Court ruled that the tax preparer’s actions were fraudulent, but Ms. Murrin was left to pay the additional tax and 30 years of interest accruals. #kimandrosadollp #taxlawyer #tax #Taxfraud #IRS #taxcourt

Although the likelihood of being audited is low, it’s still possible for the IRS to audit you. To combat fraud, the IRS increasingly relies on automated programs to identify tax returns that may need further examination. To minimize the chances of your tax return being audited, be mindful of certain factors that often trigger IRS scrutiny. Are you being audited and unsure how to proceed? Contact us at the CO CPA Firm! We are prepared to represent you before the IRS. Use the link above to schedule a consultation. . . . . #CPAServices #TaxHelp #FinancialAdvisor #AccountingSolutions #TaxSeason #BusinessFinance #TaxPlanning

IRS Audit Alert: Don't Face It Alone! 🚨 Ever feel like you're in a tax interrogation? That's in-person IRS audits for ya! 🚫 Here's the tea: • IRS agents are GOOD at their job • They ask tricky questions to catch you off guard • Every little inconsistency? They're on it! 👈🏻 But here's a pro tip: Having a tax attorney by your side can be a game-changer. We know their playbook and how to protect YOU. 🫵🏻 So, before you step into that audit room, ask yourself: Ready to face the IRS alone, or want a pro in your corner? 🥊 Drop a 💼 if you'd rather have a backup! #TaxAudit #IRSTips #TaxAttorney #AuditSurvival