Tag Archives: Audit

IRS Pointers to filing 2022 Return… A Few Good Reminders !

Well… the headline of the story was more grabbing than the actual content….but heck it worked on us, and grabbed our attention….

Here are the key points from the IRS article:

1. Gather tax paperwork and records for accuracy to avoid missing a deduction or credit.

Some information taxpayers need before they begin includes:

  • Social Security numbers for everyone listed on the tax return,
  • Bank account and routing numbers,
  • Various tax forms such as W-2s, 1099s, 1098s and other income documents or records of digital asset transactions,
  • Form 1095-A, Health Insurance Marketplace statement,
  • Any IRS letters citing an amount received for a certain tax deduction or credit.

We are good with this… a little obvious, but ok… Measure twice cut once and be safe! Onward ….

​​​​​​​2. Remember to report all types of income on the tax return. (We would add, reported or not!)

This is important to avoid receiving a notice or a bill from the IRS. Don’t forget to include income from:

  • Goods created and sold on online platforms,
  • Investment income,
  • Part-time or seasonal work,
  • Self-employment or other business activities,
  • Services provided through mobile apps.

We would add, just because you did not receive a tax notice, DOES NOT mean the IRS did not and is looking for the appropriate notation on your tax return (Huge amount of time this occurs with cashing Series EE bonds) … a missing item is an easy automated paper letter audit….and as mentioned here absolutely requires a response

From the afore mentioned post :

Amazingly nearly 2/3 of audits, which are almost all done by paper due to the cost of a field audit are not answered, resulting in a claim on the taxpayer. Bottom line, make sure you show the IRS that you’re answering their questions in a timely fashion and expect a paper computer driven notice.

3. File electronically with direct deposit to avoid delays in receiving a refund.

We are really good with this one, and have been encouraging ES payments electronically for some time now.

Ok… that is about the end of what we like in the article and what applies to everyone that is reading this post….

We find the IRS reasonably fair… sometimes they lead with you are the bad guy trying to cheat…but this is usually diffused with a nice appropriate timely answer….

Have a Great “Basic IRS Tips Review” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.



Fast January, Tax Audit Pre-View, “AO” … Friday

Not sure about you guys, but in several conversations this week, as well as a few reflection times, it was super hard to believe January is almost gone… Wow!

Speaking of Fast January, how about already another Friday… with a short week and turn around travels next week, looks like we are in full stride….

Tax Time Commeth

Given the mailbox (and inbox) is likely beginning to fill with those pesky tax forms, we have a few neat stats on Tax/Audits/IRS reviews to share soon… We actually attempted to get them into the Q1 2020 Newsletter to no avail… a good problem (too much content) … We think you may find some of the statistics very interesting, but of course never push the gray when dealing with Uncle Sam!

Here is a Teaser:

TaxAudit 2018 stats

AO – Australian Open

Regular readers know sports … and especially Tennis (Australian Open) is big at the homestead…. between a 17 hour + time zone change and the 15 year old deciding to do 6 am — YES … 6 am tennis practice, the candle has been burning a bit at both ends…. maybe the reason for the Fast January… all good!

Ahhh….but as mentioned early, today is a Friday…maybe a Fast Friday in January, but still a Friday … enjoy your weekend and get ready for some fun Tax Facts Next Week!

Have a Great “Fast Friday” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.