Monthly Archives: August 2011

IRS hires more agents

So, I have been telling everyone that IRS audits are up, especially in the metropolitan areas.  It makes sense, doesn’t it?  If the government is broke and needs more money, then they will hire more agents to audit more people.  According to a Treasury Inspector General for Tax Administration Report (Number 2011-30-071), the number of IRS employees increased from 103,811 in in 2006 to 107,622 in 2010.  in 2009, the IRS hired more than 2,000 revenue agents and tax compliance officers and during 2010, they added another 1,300 revenue agents.  These new hires are on top of the existing agents.   Continue reading

Are Damages or Punitive Damages Taxable?

The quick answer is damages or awards received for physical injuries or sickness are generally not taxable.  However, punitive damages or awards are generally taxable if they are paid to compensate a taxpayer for non-personal injuries.  Internal Revenue Code (IRC) Section 104 is the area of law that defines the taxable treatment of compensation for injuries or sickness.   Continue reading

IRS Audits Increase

Over the past year, we have seen a large increase of IRS audits.  We expect the audit increase is due to the fiscal problems / budget problems with the United States of America.  So, on one hand Congress is saying we are here to help and on the other hand, they are telling the IRS to find more money.  So be prepared.  We are seeing IRS audits for the following items: Continue reading

Business Loans for Privately Held Businesses

Peter DeGregori, CPA, MST and your host, speaks with Ken Barton with Union Bank about what the banks are looking for to lend money in today’s market.  Ken has over 35 years of banking experience, so his insight is very helpful.  Ken and Peter speak about commercial and SBA lending requirements.  We suggest all business owners listen, learn, and be prepared if you need a loan.

Continue reading