are events in our life we can avoid, others we can eliminate
and few we can plan for.
IRS audit is an event you can plan for; it can be avoided
by reasonably simple and basic planning.
Before we get in the details let us review two major facts:
Tax receipts grew in 2004 after 3 years of declining - the
growth is $98 Billion
The question is how the receipts of collected tax grew in
a time the economy is still
recovering and staggering.
In the fiscal year 2006, the administration will ask for an
increase in enforcement activities funding of 7.8% or $49.8
The funds will provide additional resources to examine more
returns, collect past due taxes and investigate cases of tax
the coming years in the name of the game is more tax receipts
are needed to control the growing budget deficit.
What that means for us " Americans who play by the rules
and pay our taxes":
Need to take proactive role in planning our tax burden such
a. Timely coordinated and clear tax plan.
b. Maintain simple, reliable and informational financial records.
2.Eliminate as much as possible of the so-called "Gray
here are my thoughts:
a. Gray areas must be eliminated before you sign your tax
return. My advice, if you are in doubt, "do not sign."
b. The negative results of allowing "Gray Areas"
to exist are
damaging and easily can be eliminated.
Make sure to discuss with us any details regarding the above,
or any other concerns. Together we can develop a clearer picture,
just black and white.