IRS Tax Audit Penalties

In a typical non-criminal IRS tax audit case, the IRS may assess accuracy related penalties or civil fraud penalties for tax adjustments not in your favor.  The penalties can be significant causing you more pain with the whole audit process.  What are these two penalties? Continue reading…


I helped this client resolve an IRS issue that has lingered for a couple of years after several attempts to correct it on their own.

Oh my Gosh!!!! A.J.!!!!!!!!!! I am almost in tears after reading your note!!!  What a blessing you are for the company (and me too 🙂 )! Thank you!!

Katherine J.

Quote of the Month – January 2013

The basic difference between an ordinary man and a warrior is that a warrior takes everything as a challenge while an ordinary man takes everything either as a blessing or a curse.

Don Juan

Questions on the New "fiscal cliff" Regulations

Questions: Please clarify the “new” “fiscal cliff”  income tax regulations regarding:
Taxes on capital gains and dividends will also rise to 20 percent. Is the rise progressive. i.e. only applies to unearned income over $500,000 ?

Taxes will also rise by five percentage points for large estates, over what amount ?

Married couples who earn $300,000 or more will face caps on itemized deductions and exemptions. Please clarify Continue reading…

IRS Audit Risk – Reporting No Wages to S Corporation Officer

An S Corporation is a popular entity structure for small businesses.  Many tax practitioners help small business set up S Corporations to reduce self-employment tax.  This strategy can back fire if the corporation reports unreasonably low or no compensation to the officers/owners.  This is an audit risk as the IRS is cracking down on business for not reporting officer wages.
Continue reading…