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

Author: Jane Ryder

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2027 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

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.

Publication Date: July 2024

Designed For
Tax professionals representing clients for audits.

Topics Covered

• Types of IRS Audits
• Other Expenses
• Audit Considerations for S Corporations
• Audit Considerations for Partnerships and LLCs Taxed as Partnerships
• Negotiating with the Auditor
• IRS Audit Procedures
• Audit Finesse

Learning Objectives

• Identify how to analyze and substantiate gross receipts for rentals and businesses
• Identify how substantiate and help the client make the case for expenses claimed
• Identify how to support deductions for office in the home, auto expenses, meals and travel
• Identify Schedule A audit issues and how to address them
• Identify practices for representing clients in challenging rental and business audits

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None