The IRS has been accused of using inappropriate political criteria, or “viewpoint discrimination,” in processing of applications by tax exempt organizations. President-elect Donald Trump will no doubt replace the IRS Commissioner, John Koskinen, who himself has been accused of obstructing congressional investigations. The IRS is a bureau of the Department of the Treasury. Incoming Secretary…
Dealing with an IRS Audit Excessive business deductions by owners and breeders of horses, livestock or general farmers–or in other businesses activities–can be a red flag that triggers IRS audits. The IRS Restructuring Act of l998 shifted the “burden of proof” away from the taxpayer, so that the IRS has the burden of showing that…
An area of concern in IRS audits of farming, livestock and horse activities is the amount of time expended by the taxpayer in the activity. A recurring problem is that taxpayers do not keep contemporaneous time records, but instead “reconstruct” time records in the face of an audit. This can always be a hurdle because…