Related Terms: Record Retention; Tax Returns Each year, the Internal Revenue Service (IRS) conducts audits on individuals and businesses to ensure that they are in compliance with U.S. tax law. The percentage of people and businesses subject to these audits is relatively small—for tax year 20...
Incomplete Record-Keeping:Once an organization or individual receives an IRS Letter of Determination, it is crucial to maintain accurate and up-to-date records. This includes proper record-keeping of financial transactions, compliance with reporting requirements, and maintaining records of any changes or...
Taxpayers, lawmakers and digital privacy advocates rebelled earlier this year when the IRS announced plans to require taxpayers to upload selfies if they wanted online access to their tax records. The selfies were needed by an identity verification service, ID.me, to compare with applicants' gove...
2. Employee retention credit scam Heads up, business owners: The IRS has been monitoring a wave of tactics used by scammers to promote and misrepresent the employee retention credit (ERC), a pandemic-era tax break for qualified businesses. Fraudsters have been encouraging businesses that do not...
Retention:The IRS generally recommends keeping tax records for at least three years, but some documents, like those related to assets, should be retained longer. Consult with a Professional:Tax laws and eligible deductions can be complex. It's wise to consult with a tax professional or accountan...