Tax Preparer IRS Tax Audit Help + IRS Compliance Audit + Expert Audit Help + Ft. Lauderdale, Miami, Miramar, Pembroke Pines

Fresh Start Tax

Get Affordable Expert Tax Help for Tax Preparers, local tax experts.

 

If the Internal Revenue Service has contacted you by mail or in person and you need expert representation because they are looking into your tax filings call us today for a free initial tax consultation.

We are local tax experts who have worked out of the local South Florida IRS offices.

We are true experts for tax preparer tax audits by the Internal Revenue Service.

We the affordable tax experts.

The IRS is on the warpath and they have set up special groups to go after small tax companies who they have flagged for tax audits.

There are multiple reasons IRS has pulled your company for a tax audit.

As a former IRS agent do not go in this unrepresented. We have over 200 years professional tax experience, over 100 years of direct IRS work experience in the local, district, and the regional tax office the entire Internal Revenue Service.

We are composed of CPAs, former revenue agents, formal revenue officers, former supervisors and managers.

We know all the methodologies to help you through your tax audit and minimize any potential problems or penalties that you may have.

Section 6695 of the Internal Revenue Code and related regulations set out the refundable credit due diligence requirements and the penalties for failure to comply with them.

The refundable credits subject to due diligence are the earned income tax credit (EITC), child tax credit (CTC), the refundable part of the CTC, additional child tax credit (ACTC, the nonrefundable part of the CTC, credit for other dependents (ODC) and American opportunity tax credit (AOTC).

The Tax Cuts and Jobs Act of 2017 amended code section 6695 to add due diligence requirements for the head of household (HOH) filing status.

Statute

Section 6695(g) of the Internal Revenue Code as amended in 2017 states:
Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining

(1) eligibility to file as head of household, or

(2) eligibility for the amount of, the credit allowable by section 24 (CTC/ACTC/ODC), 25A(a)(1) (AOTC) or 32 (EITC) shall pay a penalty of $500 for each such failure.
Under section 6695(h), the amount of the penalty is adjusted for inflation after 2015.

The penalty for returns filed in 2019 is $520 per failure.

Treasury Regulations

Section 1.6695-2 of the regulations and proposed regulations describe the due diligence requirements. Generally, if you are paid to prepare a claim for the EITC, CTC/ACTC/ODC, AOTC or HOH filing status, you must:

• Complete and submit the Form 8867, Paid Preparer’s Due Diligence Checklist, as directed for all paper and electronic tax returns and all other claims for the EITC, CTC/ACTC/ODC, AOTC and/or HOH filing status.

• Complete all the necessary worksheets or similar documents showing how you computed each of the credits.

• Know the tax law and ask questions until you have all the information you need to determine eligibility for, and the amount of, the credits, and eligibility for the HOH filing status. In evaluating information provided by the taxpayer, the tax preparer is held to a standard of making reasonable inquiries, if a reasonable and well-informed tax preparer, knowledgeable in the law, would conclude that the information seems incorrect, inconsistent, or incomplete,.

Be sure to note the questions you asked and the answers your client gave you at the time of the interview.

• Keep a copy of all of the above, along with a record of how and when you obtained the information to determine eligibility for, and the amount of, the credits, and eligibility for the HOH filing status. You must also keep a copy of all the client’s documents you reviewed and used to determine eligibility for and the amount of the credits.

You could be penalized for each time you fail to meet the due diligence requirements for one of the tax benefits claimed on the return.

That means if you are paid to prepare a return after 2018 claiming all three credits and the HOH filing status, and you fail to meet the due diligence requirements for each of these four tax benefits, the IRS could assess a penalty of $520 for each failure to meet the requirements for each tax benefit, or $2,080.

You can find the tax preparer due diligence regulations, (Treas. Reg. §1.6695-2), on the Government Printing Office site and the proposed regulations on the federal register site. Watch our Hot Topics for Return Preparers for news on the new regulations.

The Four Due Diligence Requirements

Requirement

As a paid tax return preparer, you must:

1. Complete and Submit Form 8867

• Complete Form 8867, Paid Preparer’s Due Diligence Checklist, for each EITC, CTC/ACTC/ODC, AOTC and/or HOH filing status claim you prepare.

• Complete the checklist based on compliance with due diligence requirements and information provided by your client(s).

• Submit the completed Form 8867 to the IRS with every electronic return you prepare claiming the EITC, CTC/ACTC/ODC, or AOTC and/or the HOH filing status.

• Attach the completed Form 8867 to every paper return or claim for refund you prepare for the EITC, CTC/ACTC/ODC, AOTC and/or the HOH filing status and send to the IRS.

• For every paper return or claim for refund you prepare for the EITC, CTC/ACTC/ODC, AOTC and/or the HOH filing status, advise your client of the importance of sending it with the return or claim for refund to the IRS. Find out more about the Form 8867 here.

Requirement

As a paid tax return preparer, you must:

2. Compute the Credits
Complete the appropriate refundable credit worksheets from the instructions for Form 1040. Publication 972 or the Form 8863 instructions (or complete document(s) with the same information). The worksheets show what to consider in the computation.
• Keep the records showing how you did the computations.
• These worksheets are included with most tax preparation software.

Requirement

As a paid tax return preparer, you must:

3. Knowledge
Not know or have reason to know any information used to determine a client’s eligibility for, or the amount of the refundable credit is incorrect.
• Not ignore the implications of any information given by the client or known and must make additional inquiries, if a reasonable and well-informed tax return preparer, knowledgeable in the law, would conclude the information is incomplete, inconsistent, or incorrect.
• Know the law and use that knowledge of the law to ensure you are asking your client the right questions to get all relevant information.
• Document any additional questions you ask and your client’s answer at the time of the interview.

The Treasury Regulations give examples of the application of the knowledge requirement. Find the regulations for tax return preparer due diligence requirements on the Government Printing Office site and the proposed regulations on the federal register site.

Requirement

As a paid tax return preparer, you must:

4. Keep Records

• Keep a copy of the Form 8867 and the worksheets used to determine credits.
• Keep a record of all additional questions you asked your client to comply with your due diligence requirements and your client’s answers to those questions.
• Keep copies of any documents your client gives you on which you relied on to determine eligibility for, or the amount of, the credits.
• Keep a record of how, when and from whom you obtained the information used to complete the return.
• Keep your records in either paper or electronic format but make sure you can produce them if the IRS asks for them.
• Keep these records for 3 years from the latest date of the following that apply:
• The original due date of the tax return (this does not include any extension of time for filing.), or
• If you electronically file the return or claim for refund and sign it as the return preparer, the date the tax return or claim for refund is filed, or
• If the return or claim for refund is not filed electronically and you sign it as the return preparer, the date you present the tax return or claim for refund to your client for signature, or
• If you prepare part of the return or claim for refund and another preparer completes and signs the return or claim for refund, you must keep the part of the return you were responsible to complete for 3 years from the date you submit it to the signing tax return preparer.
• Keep these records in either a paper or electronic format in a secure place to protect your client’s personal information.

 

Ft. Lauderdale, Miami, Miramar, Pembroke Pines + Tax Preparer Tax Audits + IRS Compliance Audit + Expert Audit Help

Tax Preparer Tax Audits + IRS Compliance Audit + Expert Audit Help

Fresh Start Tax

If the Internal Revenue Service has contacted you by mail or in person and you need expert representation because they are looking into your tax filings call us today for a free initial tax consultation.

 

We are true experts for tax preparer tax audits by the Internal Revenue Service.

We the affordable tax experts.

The IRS is on the warpath  and they have set up special groups to go after small tax companies who they have flagged for tax audits.

There are multiple reasons IRS has pulled your company for a tax audit.

As a former IRS agent do not go in this unrepresented. We have over 200 years professional tax experience, over 100 years of direct IRS work experience in the local, district, and the regional tax office the entire Internal Revenue Service.

We are composed of CPAs, former revenue agents, formal revenue officers, former supervisors and managers.

We know all the methodologies to help you through your tax audit and minimize any potential problems or penalties that you may have.

Section 6695 of the Internal Revenue Code and related regulations set out the refundable credit due diligence requirements and the penalties for failure to comply with them.

The refundable credits subject to due diligence are the earned income tax credit (EITC), child tax credit (CTC), the refundable part of the CTC, additional child tax credit (ACTC, the nonrefundable part of the CTC, credit for other dependents (ODC) and American opportunity tax credit (AOTC).

The Tax Cuts and Jobs Act of 2017 amended code section 6695 to add due diligence requirements for the head of household (HOH) filing status.

Statute

Section 6695(g) of the Internal Revenue Code as amended in 2017 states:
Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with due diligence requirements imposed by the Secretary by regulations with respect to determining

(1) eligibility to file as head of household, or

(2)  eligibility for the amount of, the credit allowable by section 24 (CTC/ACTC/ODC), 25A(a)(1) (AOTC) or 32 (EITC) shall pay a penalty of $500 for each such failure.
Under section 6695(h), the amount of the penalty is adjusted for inflation after 2015.

The penalty for returns filed in 2019 is $520 per failure.

Treasury Regulations

Section 1.6695-2 of the regulations and proposed regulations describe the due diligence requirements. Generally, if you are paid to prepare a claim for the EITC, CTC/ACTC/ODC, AOTC or HOH filing status, you must:

• Complete and submit the Form 8867, Paid Preparer’s Due Diligence Checklist, as directed for all paper and electronic tax returns and all other claims for the EITC, CTC/ACTC/ODC, AOTC and/or HOH filing status.

• Complete all the necessary worksheets or similar documents showing how you computed each of the credits.

• Know the tax law and ask questions until you have all the information you need to determine eligibility for, and the amount of, the credits, and eligibility for the HOH filing status. In evaluating  information provided by the taxpayer, the tax preparer is held to a standard of making reasonable inquiries, if a reasonable and well-informed tax preparer, knowledgeable in the law, would conclude that  the information seems incorrect, inconsistent, or incomplete,.

Be sure to note the questions you asked and the answers your client gave you at the time of the interview.

• Keep a copy of all of the above, along with a record of how and when you obtained the information to determine eligibility for, and the amount of, the credits, and eligibility for the HOH filing status. You must also keep a copy of all the client’s documents you reviewed and used to determine eligibility for and the amount of the credits.

You could be penalized for each time you fail to meet the due diligence requirements for one of the tax benefits claimed on the return.

That means if you are paid to prepare a return after 2018 claiming all three credits and the HOH filing status, and you fail to meet the due diligence requirements for each of these four tax benefits, the IRS could assess a penalty of $520 for each failure to meet the requirements for each tax benefit, or $2,080.

You can find the tax preparer due diligence regulations, (Treas. Reg. §1.6695-2), on the Government Printing Office site and the proposed regulations on the federal register site. Watch our Hot Topics for Return Preparers for news on the new regulations.

The Four Due Diligence Requirements

 

Requirement

As a paid tax return preparer, you must:

1. Complete and Submit Form 8867

• Complete Form 8867, Paid Preparer’s Due Diligence Checklist, for each EITC, CTC/ACTC/ODC, AOTC and/or HOH filing status claim you prepare.

• Complete the checklist based on compliance with due diligence requirements and information provided by your client(s).

• Submit the completed Form 8867 to the IRS with every electronic return you prepare claiming the EITC, CTC/ACTC/ODC, or AOTC and/or the HOH filing status.

• Attach the completed Form 8867 to every paper return or claim for refund you prepare for the EITC, CTC/ACTC/ODC, AOTC and/or the HOH filing status and send to the IRS.

• For every paper return or claim for refund you prepare for the EITC, CTC/ACTC/ODC, AOTC and/or the HOH filing status, advise your client of the importance of sending it with the return or claim for refund to the IRS. Find out more about the Form 8867 here.

Requirement

As a paid tax return preparer, you must:

2. Compute the Credits
Complete the appropriate refundable credit worksheets from the instructions for Form 1040. Publication 972 or the Form 8863 instructions (or complete document(s) with the same information). The worksheets show what to consider in the computation.
• Keep the records showing how you did the computations.
• These worksheets are included with most tax preparation software.

Requirement

As a paid tax return preparer, you must:

3. Knowledge
Not know or have reason to know any information used to determine a client’s eligibility for, or the amount of the refundable credit is incorrect.
• Not ignore the implications of any information given by the client or known and must make additional inquiries, if a reasonable and well-informed tax return preparer, knowledgeable in the law, would conclude the information is incomplete, inconsistent, or incorrect.
• Know the law and use that knowledge of the law to ensure you are asking your client the right questions to get all relevant information.
• Document any additional questions you ask and your client’s answer at the time of the interview.

The Treasury Regulations give examples of the application of the knowledge requirement. Find the regulations for tax return preparer due diligence requirements on the Government Printing Office site and the proposed regulations on the federal register site.

Requirement

As a paid tax return preparer, you must:

4. Keep Records

• Keep a copy of the Form 8867 and the worksheets used to determine credits.
• Keep a record of all additional questions you asked your client to comply with your due diligence requirements and your client’s answers to those questions.
• Keep copies of any documents your client gives you on which you relied on to determine eligibility for, or the amount of, the credits.
• Keep a record of how, when and from whom you obtained the information used to complete the return.
• Keep your records in either paper or electronic format but make sure you can produce them if the IRS asks for them.
• Keep these records for 3 years from the latest date of the following that apply:
• The original due date of the tax return (this does not include any extension of time for filing.), or
• If you electronically file the return or claim for refund and sign it as the return preparer, the date the tax return or claim for refund is filed, or
• If the return or claim for refund is not filed electronically and you sign it as the return preparer, the date you present the tax return or claim for refund to your client for signature, or
• If you prepare part of the return or claim for refund and another preparer completes and signs the return or claim for refund, you must keep the part of the return you were responsible to complete for 3 years from the date you submit it to the signing tax return preparer.
• Keep these records in either a paper or electronic format in a secure place to protect your client’s personal information.

Tax Preparer Tax Audits + IRS Compliance Audit + Expert Audit Help

IRS Intent to Terminate Installment Agreement + Call For Former IRS Agent Help

Fresh Start Tax

If you just got have got a letter that IRS  is going to terminate your installment of treatment you better take corrective action immediately. Don’t Wait.

 

As a former IRS agent and teaching instructor with the Internal Revenue Service the IRS computer system generates a notice or letter when an installment payment is not made timely.

The IRS computer system flags the Social Security number and activates an IRS notice or letter in this case the CP 523 or the CP 523H letter letting the taxpayer know that they plan to terminate the IRS the installment repayment arrangement that they currently have in place.

 

What does this mean if the Internal Revenue Service terminates your installment agreement?

 

When the IRS terminates your installment agreement, you set the wheels in motion all over again of the Internal Revenue Service reprocessing your case, taking a new financial statement, and making a new disposition of your case based on new financial facts.

It may make your life easier or make your life worse. your current financial statement means everything and how IRS is your dispose of your current case.

A little bit of trust leaves the Internal Revenue Service because you have failed to keep a legal and binding contract with the United States government.

The facts will be based on a new set of income and expense statements. This pretty much means your case starts all over again and IRS will be a little tougher than they were the first go around.

If you do not respond to the letter, IRS may follow-up with a notice of bank levy or wage garnishment or the filing of a federal tax lien

You do not want disregard this notice of termination because IRS will follow this up with full enforcement action if you do not contact them.

We recommend you contact the Internal Revenue Service immediately.

If your financial condition has changed and you wish to make a change the payment or installment arrangement, file an offer in compromise or may ask for IRS to put you in a hardship, call today for free initial tax consultation.

Remember, the most important thing that you can do is contact the IRS to stop the enforcement action that is the next step.

Planning for the call and the confrontation is equally important because IRS will make this new determination which is going to alter your current financial condition.

Do not take this lightly.Once you break your current installment agreement that gives IRS the immediate right to send out a notice of bank levy, wage garnishment or the filing of a federal tax lien.

We are available for free initial tax consultations in which you will hear the truth about your case and maybe find a different solution to resolving your IRS tax debt.

IRS Intent to Terminate Installment Agreement + Call For Former IRS agent Help

 

STOP RECEIVING IRS Threatening Bills/Notices/Letters * former irs agent help now + Ft. Lauderdale, Miami, Boca Raton, Key West, Palm Beaches + All of South Florida

Fresh Start Tax

STOP RECEIVING IRS LETTER AND NOTICES NOW Former IRS agents and managers, affordable since 1982.

 

We are a local tax firm specializing in IRS tax matters.

As former IRS agents we worked out of the local, district and regional tax offices of the South Florida IRS offices.

We know all the systems, all the methodologies, to help completely resolve your IRS matter whether you have unfiled taxes are unpaid tax bills.

We handle all IRS notices, letters and correspondence.

You’ll never have to speak to the Internal Revenue Service.

We are the fast, affordable, professional South Florida tax firm that handles all IRS and state tax problems.

The bottom line, we are the affordable tax FIRM that knows the system, we are located in your backyard.

If you received a notice or letter from Internal Revenue Service that the government is trying to collect unpaid taxes and you need to file tax returns you may want to jump on this right away.

IRS considers this a double whammy.

IRS classifies cases by filing and paying status and if you have unfiled taxes and owe back tax, you got a double bonus with IRS and this is more of a serious nature to Internal Revenue Service than a simple filing issue.

The Internal Revenue Service will keep a close eye on this case.

Why do I know that?

I am a former IRS agent and teaching instructor and taxpayers that have not filed and paid their tax bill and have unpaid taxes our watched more closely because these cases can get out of hand a lot quicker and IRS want keep a tight watch to make sure these type of cases do not get out of control.

The dollar the unpaid taxes in the amount of tax returns not filed are a key issue to the IRS’s watchful eye.

IRS usually assigns more seasoned agents or officers on this case to make sure the taxpayer stays in both paying and filing compliance.

This is why you may want to call us.

We are former IRS agents and managers who know the systems and methodologies involved in dealing with the Internal Revenue Service.

Whatever you do take this serious because IRS will tend to follow-up with enforcement action on these cases the get your attention.

What is enforcement action:

You can probably expect the filing of a federal tax lien, the possibility of wage or bank levy garnishments and maybe a knock on your door asking for a financial statement in the threat of virus seizing assets.

A simple call to the IRS giving them the information they need will stop IRS.

By giving us a simple power of attorney and retaining us, we can stop the IRS and work out an agreement that you can live with and in the meantime file your returns to keep IRS happy.

Call us today for a free initial tax consultation.

We have over 200 years of combined IRS work experience, over 100 years of direct IRS work experience and of worked thousands of cases.

We are A+ rated by the Better Business Bureau and been in practice since 1982.

Did You receive a LT16????

What this notice is about:

If you received a simple LT16 notice, it’s because we’re trying to collect unpaid taxes from you and/or our files show we’re missing tax returns from you.

It is essential that you take action in order to avoid potential enforcement action, which can include seizing your assets or wages.

We are here, call us if you need us.

 

STOP RECEIVING IRS Threatening Bills/Notices/Letters * former irs agent help now + Ft. Lauderdale, Miami, Boca Raton, Key West, Palm Beaches, South Florida

Stop Receiving IRS Letters/Notices for Unfiled Taxes, Unpaid Tax Bills * former irs agents + Miami, Ft. Lauderdale, Boca Raton, Pompano, Pembroke Pines, Hollywood, Palm Beaches

Fresh Start Tax

STOP RECEIVING IRS LETTER AND NOTICES NOW

 

We are a local tax firm specializing in IRS tax matters.

As former IRS agents we worked out of the local, district and regional tax offices of the South Florida IRS offices.

We know all the systems, all the methodologies, to help completely resolve your IRS matter whether you have unfiled taxes are unpaid tax bills.

The bottom line, we are the affordable tax FIRM that knows the system, we are located in your backyard.

If you received a notice or letter from Internal Revenue Service that the government is trying to collect unpaid taxes and you need to file tax returns you may want to jump on this right away.

IRS considers this a double whammy.

IRS classifies cases by filing and paying status and if you have unfiled taxes and owe back tax, you got a double bonus with IRS and this is more of a serious nature to Internal Revenue Service than a simple filing issue.

The Internal Revenue Service will keep a close eye on this case.

Why do I know that?

I am a former IRS agent and teaching instructor and taxpayers that have not filed and paid their tax bill and have unpaid taxes our watched more closely because these cases can get out of hand a lot quicker and IRS want keep a tight watch to make sure these type of cases do not get out of control.

The dollar the unpaid taxes in the amount of tax returns not filed are a key issue to the IRS’s watchful eye.

IRS usually assigns more seasoned agents or officers on this case to make sure the taxpayer stays in both paying and filing compliance.

This is why you may want to call us.

We are former IRS agents and managers who know the systems and methodologies involved in dealing with the Internal Revenue Service.

Whatever you do take this serious because IRS will tend to follow-up with enforcement action on these cases the get your attention.

What is enforcement action:

You can probably expect the filing of a federal tax lien, the possibility of wage or bank levy garnishments and maybe a knock on your door asking for a financial statement in the threat of virus seizing assets.

A simple call to the IRS giving them the information they need will stop IRS.

By giving us a simple power of attorney and retaining us, we can stop the IRS and work out an agreement that you can live with and in the meantime file your returns to keep IRS happy.

Call us today for a free initial tax consultation.

We have over 200 years of combined IRS work experience, over 100 years of direct IRS work experience and of worked thousands of cases.

We are A+ rated by the Better Business Bureau and been in practice since 1982.

Did You receive a LT16????

What this notice is about:

If you received a simple LT16 notice, it’s because we’re trying to collect unpaid taxes from you and/or our files show we’re missing tax returns from you.

It is essential that you take action in order to avoid potential enforcement action, which can include seizing your assets or wages.

We are here, call us if you need us.