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Diversified Financial Consultants President Dominick Tavella on the different types of audits and how to deal with them.
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Well -- the words taxpayers dread most IRS -- that one in every eight millionaires got slammed with one in 2011 and you can expect.
Even more -- share.
Especially for those high income earners.
So what happens if -- next you've got your bottom line covered but crucial tips -- navigating the process.
Joining me now -- to -- founder and president of diversified financial consultants.
Stomach welcome back to show Q now what in the brief -- -- talking about I was mentioning look -- really went after rich people last year house of different.
Well it's that different as add on so look they don't where the money -- -- wealthy people have the money.
More important are so targeting small business owners a lot of the right off the expenses -- these guys are taking women are taken small business owners.
It targeting knows that's acrimonious are -- -- small business owners will not be happy to hear that be happy so let's talk about the types of products that only people realize there's more than one time.
Well -- did -- do -- -- dreaded one people get the IRS notice in the mail and typically precious the Irish looking for some clarification some information so those aren't really the -- ones don't don't be wary -- you -- -- -- -- -- Don't panic that's number one role.
But more important are the ones that -- you look gonna go into an Irish supported it at their offices are -- gonna come to your office or your accountant's office so.
Yes so if I have to go to their -- -- if they come to me.
Then you gotta start worrying I would say look you gotta find out what the problem is in the first thing is let's look at -- notice let's look at what specifically they're asking for.
But depending what -- asking -- it's just a clarification did you roll -- -- IRA or four of one -- declared a dividend of capital date.
You could answer that one on your own anything that and that higher professional CPA or tax attorney.
Now I would have thought you would have said tell everything you know about whatever the issue as -- you're like a lot more circumspect in.
-- but today that didn't did not do.
Let you get -- mail -- typically a specific item that they're looking for -- -- -- looking at things like your expenses -- business expenses your mileage in your car.
Some called collaborating about everything the moon and the sun starts answer that questions be very specific.
-- you say higher -- targets small business and 2013 and and let's talk a little bit about why fringe benefits.
Look if you look at the average taxpayer active tax returns are pretty clean W -- -- -- -- there isn't much fudge factor a small business -- there's a lot of expenses.
How much the use your car for business.
Did you take decline after dinner -- -- your wife there's a lot of gray area here again the Irish just targeting where the money is by the expenses are requested their high income taxpayers -- so these are the people who are in the cross out Harris.
-- tracked transactions would be more likely rate it's possible certainly -- a parade larger business owner I think most of the targets and with regard to the IRS is that expensive office expenses travel -- payment.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- withholding Medicare withholding payroll taxes they do not want you do so they're very.
Did strict rules and who was an inside employee and -- an outside contractor.
And quickly -- have a lot of time but if I can't pay what awaits you listen you've gone to an -- unfortunately find out you all money that is -- create.
Payment plan with the IRS you've negotiated a settlement this is what you all of them.
If you negotiate a payment schedule that point you can aboard a huge pile of penalties and interest going forward found a great job and -- finds out -- -- -- see you thank you.
