Federal Tax changes. There have been thousands of changes. Are you sure you're up to date on all the new tax credits?  How about the rules on debt forgiveness? What about the changes in tax rates? There have been more changes in federal law this past year then I can remember in a long time.  This is stuff you don't want to miss out on.  Unfortunately, it's also a case of what you don't know can hurt you. 

 

IRS Audits.  The IRS is aggressively auditing specific targets. Are you on their list?  Simple little changes can dramatically reduce your IRS audit profile.  A properly prepared tax return is your first line of defense.

 

For example, the IRS is targeting real estate professionals who have taken real estate losses on their tax return.  Do you know what two places on your tax return they are trained to look?  It's super simple, but if you get it wrong, it is a red flag. Two of the things that the IRS auditor is trained to look out for is (1) what occupation is listed on the return and (2) whether Schedule E is properly completed to show the real estate professional deduction.  These can be possible red flags for an audit.

 

State Tax.  The states are broke and they only have one stimulus plan - YOU! State audits are also on the rise.Think the federal laws are bad?  You haven't seen anything yet. States are reinventing old rules and passing new laws that don't even make sense.  More than ever, you need tax consultants who think beyond the geographic constraints of your federal return.