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Tax planning is crucial for the growth of any business. Unfortunately, there are situations where a business would like to engage in a transaction and the IRS has issued no guidance as to how that transaction should be treated for tax purposes. To address this issue, the IRS allows tax professionals to request guidance as...

As a general rule, a Canadian trucking company does not pay U.S. federal income tax on certain activities undertaken in the United States. According to IRS Publication 597, under the Canada Income Tax Treaty, transportation companies operating their trucks as a common carrier shall be exempt from federal income tax. However, any Canadian company engaged...

These days it has become common for businesses and individuals operating in the international sphere to keep funds available in a foreign bank to make their cross-border operations easier. The U.S. Treasury tracks these funds by obtaining details from international banks holding the accounts of U.S. residents. Further, it requires U.S. residents to report these...

To better or more fully understand about tax audits, one should first understand the meaning of an “Audit”.  An Audit is a an official review or examination of your accounts or books by an independent body. A tax audit is a type of audit by the IRS which they review and examine a tax return...

The possibility of the IRS examining your tax returns generally depends on income level and filing type.  The more complex your tax returns, the higher the chances of facing an audit. The more basic the tax return, the lower the chance of scrutiny. Generally speaking, most returns are randomly selected for audit.  That being said,...

Every taxpayer dreads the words ‘IRS audit’.  As a taxpayer, you file your tax returns on time, but fear the possibility of being audited. We hear stories of people being audited and how stressful it can be. Fortunately, over the past few years, IRS audits have been declining.  Also, a huge number of audits are...