Income Tax Audits In The Liquor Store / Liquor Distribution Industry Of Chicago

It seems as if Federal and State TAX Audits of experts involved in The Liquor Store / Liquor Distribution Industry are on the rise. Please understand that the main functions of the Internal Revenue Service and the Illinois Department of Revenue are to collect taxes. They do this through enforcing the laws transferred by Congress and the State of Illinois.

If you are in an audit, a very important thing that can be done is to get adequate representation. The working job from the IRS as well as the IDOR is to enforce the law, and to collect as much tax as is legally allowable by law. They are very good at their job. Representing yourself in an Income Tax Audit simply makes it much easier for them to collect. In the event that you own a liquor store or liquor distribution business, then there are many things to take into account in an Income Tax Audit. Most likely the largest concern is the probability of the charge of Tax Evasion.

If it could be proven that your business required in additional money than was reported on your income tax return, then there is the probability of both criminal and civil penalties. In other words there is the possibility that you will not only have to pay additional tax, penalty and interest, but that you will go to prison also.

Representing yourself considerably increases your dangers. Another common mistake is not knowing what you are doing simply. Because you believe you should get a deduction for something does not imply that it is legal that you should do so. No-one with half of a brain cell has ever said that taxes law was fair.

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It isn’t. It really is neither easy nor acceptable to understand. I just saw the results of an examination where in fact the taxpayer tried to create off mileage for happen to be and from his place of business. Uncle Sam does not give anyone a deduction for heading to work. Its simply not deductible. In the taxpayers mind, it was an ordinary and necessary business expense that should have been deductible. He didn’t even have a mileage log. Every day on examinations that people don’t handle We see this sort of thing. If you are having troubles with your Liquor Store Income Tax Audit or have issues with your accounting generally, we would love to help.

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