Form 843 Audits 2011-2023

Three reasons why CPAs must avoid IRS audit representation cash is wonderful cash is king and every one of your clients values the commodity that is cash we know that for some cash may be difficult to account having significant cash inflow can create lots of dilemmas to a business among the concerns is whether that business climbed properly accurately and completely reports all of its cash revenues and tax returns now every accountant and every attorney knows that some business owners may be tempted to unfairly report their cash receipts and so begins the IRS audit IRS tax audit of business with significant amounts of cash is extremely specialized most attorneys wisely avoid handling these engagements they find this area of representation to be too technical with all the accounting principles the auditors inquiry begins with a survey of the business tax return changes in the balance sheet cash t-account analysis and other traditional accounting tools and methods but wise CPAs in tax accountants also try to avoid these audits because of the great exposure to professional malpractice why first an experienced tax accountant especially the CPA is familiar with the professional risks involved in this representation representing to governmental authorities the facts of mishandled cash can renard our legal consequences upon the client yes you could actually make that con situation worse at best unreported cash revenues results in additional tax plus there's a routine assessment of the IRC 6662 penalty this penalty equals an additional 20% of the tax but there is much more at risk here there's also the possibility of fraud committed by the business client a person commits tax fraud when he/she or the business intentionally provides false information on a tax return in order to pay less tax and for any person determined...