Audits - What to Expect for Sole Proprietors, Schedule E Rentals, Form 1040 Losses, Schedule a Audit (Completed)

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Prepare for audits of individuals' Schedule A, Schedule C, and Schedule E for rentals plus S corps, C corps, partnerships & LLCs. For rentals and businesses, we need to be able to analyze taxpayer records to support gross proceeds reported and substantiate business expenses. We'll review unique issues related to different expenses, including home office and auto expenses. For Form 1040 we'll discuss challenges of supporting large tax losses and consider an individual's exposure on Schedule A, including medical, mortgage interest, and charity. Understand tax situations that may create a greater risk of audit and areas of interest for IRS audits.

Who Should Attend
Tax professionals representing clients for audits.

Topics Covered

• Reporting gross receipts for business and rentals
• Substantiating expenses for business and rentals
• Compliance issues related to entities such as reasonable compensation, health insurance, home office
• Heightened expense substantiation requirements under Sec. 274(d)
• Effect of large losses on audit exposure and rules to support losses claimed
• Common Schedule A audit items and reducing exposure

Learning Objectives

• Analyze and substantiate gross receipts for rentals and businesses
• Substantiate and help the client make the case for expenses claimed
• Strengthen skills for supporting deductions for office in the home, auto expenses, meals and travel
• Understand Schedule A audit issues and how to address them
• Develop practices for representing clients in challenging rental and business audits

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None