IRS Questions Everyone Is Afraid to Ask (Answered by a CPA)

#IRS red flags #Can IRS see your bank account#IRS audit explained #Business losses IRS rules

IRS FAQ: Business Losses, Declining Income, Bank Accounts, TOD Deeds & Deduction Rules

Stephen Lee CPA answers common taxpayer questions: how the IRS treats multi-year business losses after COVID, explaining net operating losses (NOLs) can generally be carried forward indefinitely to offset up to 80% of future taxable income and stressing documentation to avoid hobby-loss issues; whether declining self-employment income near retirement is a red flag (it isn’t if returns match reality); whether a transfer-on-death (TOD) deed for a primary residence can provide a step-up in basis for a child; what access the IRS has to bank information via 1099 reporting, cash transaction reports, suspicious activity reports, and formal summonses; the general 50% meals deduction for craft services (with limited 100% exceptions); how to judge “reasonable” deductions (ordinary, necessary, documented, industry-consistent, with IRS pubs 535 and 463); and how long to keep tax returns (3, 6, or 7 years depending on circumstances).

00:00 Taxpayer Worries Intro

00:21 Welcome and Disclaimer

00:42 Subscribe and Support

01:07 Business Losses and NOLs

02:43 Declining Income Concerns

03:31 Passing Home to Kids

04:18 IRS and Bank Access

05:59 Meals Deduction Rules

06:44 Reasonable Deductions

07:09 How Long to Keep Returns

07:29 Wrap Up and Q&A Prompt

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