Welcome to Grapevine CPA!

This is my first post on this Blog. Make sure you do your taxes on time.

The IRS auditor received instructions to hit taxpayer with mileage deduction or meal & entertainment hard and fast.  This area is an easy audit area because most people ignore the rules requiring that mileage logs be kept or keeping records of the five facts needed to claim a meal or entertainment.

This is an expensive lesson to learn in an audit.  Beside paying a thousand dollars for audit representation to fight the tax increase, the average tax increase is going to be in the $2 to $5K range depending on your circumstances.

Get educated on the logs you need to keep and avoid the pain. Google IRS mileage logs or call your tax representative.

Alfredo’s Blog

IRS Appeals case log is chocked with audit appeals from audit adjustment that are harsh.

A current client lost all his tax records in a move.  The initial tax adjustment was going to be $78,000.  Currently down to $18,000.  The audit has taken this family’s ability to claim the Earned Income Credit by hitting them with a penalty.

Well I guess that the Appeal Division of the IRS is getting another case.  This one may go to court.  Particularly when the IRS attorny will release the case on the court house steps.
This CPA hate this constant gamesmenship and negotiation that goes on.  But I hate having a working family getting run over by the system even more.

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