Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
According to IRS tax gap studies, small businesses account for the largest segment of the $458 billion annual loss in tax revenue to the US Treasury, largely due to the underreporting of income and overstating of credits and deductions. As a result, the IRS field audit resources focus much of its audit activity on small businesses.
This course identifies which businesses the IRS mostly targets in small business audits. You will understand the scope of IRS small business audits and the issues the IRS targets in these examinations. Learn about the IRS' audit steps in examining income and which records it expects in an examination.
This course will also help you prepare for your client's small business audit. Preparation is critical to a successful outcome in your client's small business audit. Get critical insight on preparing your client's records for an audit and anticipating all of their questions and audit steps in the audit.
Publication Date: May 2023
Designed For
All tax professionals who have small business clients and want to be prepared in case their clients have an IRS audit.
Topics Covered
- The IRS interest in small businesses
- The IRS field audit process
- The top ten small business audit issues/targets
- Best practices in dealing with an IRS small business audit, including steps to prepare for the audit
Learning Objectives
- Describe the reasons for compliance focus on small businesses
- Recognize how to explain the Top 10 IRS audit focus areas for small businesses
- Describe how to evaluate your client's records and identify the critical records in every IRS small business audit
- Identify the steps to prepare for a small business audit
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Jim Buttonow
Jim Buttonow, CPA, CITP, has been a leader in helping taxpayers and tax professionals resolve tax problems with the IRS.
For 19 years, Jim worked at the IRS in various compliance enforcement positions. Since 2006, Jim has been in private practice and tax and accounting software development. Jim consulting practice focuses on the areas of tax controversy and tax administration. Jim led product development and marketing for a successful software company that developed tax problem software for tax professionals and has developed and implemented post-filing tax services to large tax providers, such as H&R Block and Jackson Hewitt. This software is currently being used by tens of thousands of tax professionals and businesses in the United States.
Jim has been an IRS partner in improving IRS operations and post-filing service to taxpayers. Jim served as chairperson of the IRS Electronic Tax Administration Advisory Committee (ETAAC) in 2015 and 2016 during which ETAAC played a central role in promoting the IRS digital strategy to develop transformative technology solutions to systemic challenges in tax administration. Jim also served as the North Carolina representative on the IRS’ Taxpayer Advocacy Panel (TAP) from 2020-2022.
Jim regularly speaks on areas of tax administration and problem solving to national associations and has testified before Congress in areas of tax administration. He has also published many articles in industry publications. In his articles, Jim focuses on delivering practical insights, advocating for IRS transparency and efficiency, and proposing innovative large-scale solutions for taxpayers and tax professionals.
Jim currently authors the Tax Problems and Solutions Handbook, a publication aimed at helping tax pros work more effectively in post-filing matters and resolving their clients’ most common tax problems. The book can be found online at TaxProblemsHandbook.com. Jim can be reached at Jim@buttonowcpa.com or at his website at buttonowcpa.com.