by Fresh Start Tax | Dec 24, 2013 | Tax Help
IRS – Audit Defense – IRS Audit Representation – Tax Return Audits – 954-492-0088
We are the Affordable Professional Tax firm that gets results! Hire Former IRS Agents
We are a local South Florida tax firm that has been representing taxpayers in South Florida since 1982for all IRS tax matters and IRS Audit defense.
On staff are Former IRS Auditors, Audit Managers and Audit Instructors with a combined 60 years IRS work experience in the local South Florida IRS offices.
We have worked as IRS auditors, IRS revenue agents, IRS appellate agents and IRS audit or instructors all in the South Florida IRS offices.
We taught Tax Law at the IRS. We know the IRS systems to give you strong IRS tax representation.
If you are going through an IRS tax audit there is no better tax representation than you can get the people who actually know the systems, the protocols in the settlement formulas.
We have worked hundreds upon hundreds of IRS tax audit cases including IRS audit defense, IRS audits of individual , business and corporate tax returns
We are A+ rated by the Better Business Bureau.
We are a team of tax attorneys, certified public accountants, and former IRS agents and
managers who worked right here out of the local South Florida IRS offices.
We have a cumulative 206 years of professional tax experience and over 60 years of working right here in the South Florida IRS offices.
Taxpayers Right for IRS Tax audits
Most taxpayers do not know that they have tax rights during an IRS tax audit and to go in up unrepresented is foolish.
Keep in mind that an IRS agent has the right to expand the tax audit beyond the scope of the initial paperwork sent to the taxpayer and many times tax professionals can keep the IRS from going much deeper into a taxpayer or companies tax return.
The agent has the right to go three years back an additional time if they feel there are large omissions of income.
Taxpayer should have the best IRS audit defense and audit representation possible.
Whether it is an individual business or corporate tax return former IRS agents know the system.
Facts of Internal Revenue Service Tax Audits
- The Internal Revenue Service audits 1.03% of all tax returns filed. That’s it, just over 1%
I would not recommend you play the IRS lottery game because of your tax return false out of the national standards you have an excellent chance of being audited by the Internal Revenue Service.
- Nationwide, the IRS audits 1.5 million tax returns per year, that includes both field audits and IRS mail correspondence audits.
- 359,000 are actually audited by local IRS agents and rest are by mail or correspondence tax audits.
- IRS collects $10.2 billion a year as a result of IRS audits by field agents and $5.2 billion a year by document matching programs.
- IRS collects over$5 billion from the matching program alone.
Most Frequently asked Question – How far back can the IRS go to audit my return?
The IRS can include returns filed within the last three years in an audit.
Additional tax years can be added if a substantial error is identified.
If a substantial error is identified, the IRS will not go back more than the last six years. Fraud however has no statute .
The IRS tries to audit tax returns as soon as possible after they are filed.
Accordingly most audits will be of returns filed within the last two years.
Statute of Limitations on IRS Tax Audits
If an audit is for an older year, you may be requested to extend the statute of limitations for assessment of your tax return.
The statute of limitations limits the time allowed to assess additional tax.
The statute of limitations is generally three years after a return is due or was filed, whichever is later.
Refund Statutes – There is also a statute of limitations for making refunds.
If the audit is not resolved and the statute of limitations date is nearing, you may be asked to extend the statute of limitations date.
This will allow you additional time to provide further documentation to support your position, request an appeal if you do not agree with the audit results, or to claim a tax refund or credit.
It also allows the IRS time to complete the audit and provides time to process the audit results.
You do not have to agree to extend the statute of limitations date.
However, if you do not agree, the examiner will be forced to make a determination based upon the information they currently have.
Therefore, the examiner may not be able to consider additional adjustments, such as expenses, that could lower the amount of tax due.
The IRS Tax Audit Selection Process, yes there is a strategy.
Selecting a return for audit does not always suggest that an error has been made.
Returns are selected using a variety of methods including:
- Random selection and computer screening , sometimes returns are selected based solely on a statistical formula.
- Document matching, when payor records, such as Forms W-2 or Form 1099, don’t match the information reported.
- Related examinations, returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit.
Sometimes tax returns are audited because spouses and ex-employees report findings to the Internal Revenue Service.
Your Rights During an IRS Tax Audit
These taxpayer rights include:
1. You have a right to professional and courteous treatment by IRS employees.
2. You have a right to privacy and confidentiality about tax matters.
3. You have a right to know why the IRS is asking for information, how the IRS will use it and what will happen if the requested information is not provided.
4. You have a right to representation, by oneself or an authorized representative.
5. You have a right to appeal disagreements, both within the IRS and before the courts.
IRS Tax Audit Length, all depends
The length of each audit varies depending on the type of audit, the complexity of items being reviewed, the availability of information being requested, the availability of both parties for scheduling of meetings and your agreement or disagreement with the findings. as a general rule if you are scheduled for office audit those can last from week to three weeks.
Sometimes if an IRS revenue agent is auditing your tax return it can take anywhere from a month to a year.
Records Needed
You will be provided with a written request for specific documents needed.
The law requires you to retain records used to prepare your return.
Those records generally should be kept for three years from the date the tax return was filed.
The IRS does accept some electronic records. If records are kept electronically, the IRS may request those in lieu of or in addition to other types of records. Contact your auditor to determine what can be accepted to ensure a software program is compatible with the IRS’s.
IRS Audit Determinations
An audit can be concluded in three ways:
1.No change:
An audit in which you have substantiated all of the items being reviewed and results in no changes. Great news here.
2. Agreed:
An audit where the IRS proposed changes and the taxpayer understands and agrees with the changes.
3. Disagreed:
An audit where the IRS has proposed changes and the taxpayer understands, but disagrees with the changes.
What Happens When You DISAGREE with the Audit Findings?
A conference with a manager may be requested for further review of the issue or issues. In addition, Fast Track Mediation or an Appeal request may be filed.
Your Appeal Rights
The IRS has an administrative appeals process that works with taxpayers to try to settle tax disputes in an effort to avoid formal court hearings.
The role of Appeals is to make an independent review of a tax dispute and to consider the positions taken by both the taxpayer and the Service. The Appeals unit strives to resolve tax disputes in a fair way and remain impartial to both parties.
The IRS will send you a report and/or letter that will explain the proposed adjustments or proposed or taken collection action.
The letter also tells you of your right to request a conference with an Appeals or Settlement Officer, as well as how to make your request for a conference. In addition to examination adjustments, many other things can be appealed such as penalties, interest, trust fund recovery penalties, offers in compromise, liens, and levies.
If you request an Appeals conference, be prepared with records and documentation to support your position.
Appeals conferences are informal meetings. You may represent yourself or have an attorney, accountant, or an individual enrolled to practice before the IRS, represent you.
If you do not reach agreement with the Appeals or Settlement Officer, or you do not wish to appeal within the IRS, you may appeal certain actions through the courts.
IRS = Audit Defense = IRS Audit Representation = Tax Return Audits + Former IRS, Miami Gardens, Aventura, Coral Gables, Sunny Isles
by Fresh Start Tax | Dec 20, 2013 | Tax Help
IRS Service Now Becoming Automated, Faster For Taxpayers
Given available resources and shifting taxpayer demands, the IRS will be making a number of taxpayer service changes for the 2014 filing season.
The changes, which were made following input from stakeholders in the tax community, reflect the need for increased use of automated self-service options.
With limited IRS resources from Congress to support person-to-person services on the phone or at Taxpayer Assistance Centers, the IRS is emphasizing services, such as those found on IRS.gov, to help meet a number of taxpayer needs.
This approach will finally free up IRS assistors on the phone or in person to help with issues that cannot be resolved through other avenues, such as issues involving identity theft. A long needed approach to keep up with modern times.
Each year, the IRS balances anticipated customer service needs against available resources to determine the right mix of technology, employees and IRS partner-provided assistance to meet these needs in the most effective and efficient way.
The changes for filing season 2014 affect these areas:
- Employer Identification Number
Practitioner Priority Service
Taxpayers should find these automated services easy to use and convenient. Many are available 24 hours and seven days a week.
Tax Return Preparation
Due to resource constraints, fewer tax returns have been prepared at IRS walk-in offices in recent years.
For several years, return preparation has only been available in a limited format – only offered at some IRS offices and not every day of the week at some locations.
In addition, taxpayers had to have income below the Earned Income Tax Credit thresholds to receive this assistance.
With the growth in electronic tax preparation and continued resource limitations, the IRS will be directing qualified taxpayers during the upcoming filing season to more than 13,000 volunteer partner sites across the country rather than limited services at the IRS’s 250 walk-in offices.
The IRS will refer taxpayers who visit the walk-in offices for tax preparation to the nearest volunteer site for tax return preparation.
In addition, the IRS Free File program on IRS.gov offers free e-file and tax software to help taxpayers prepare their returns.
New “Get Transcript” Service – this is so long overdue
Early in 2014, a new online request option called “Get Transcript” on IRS.gov will allow individual taxpayers with an SSN to instantly view and print a copy of their tax transcripts. With Get Transcript, taxpayers will save both time and effort.
When the new service is available, transcript requests will generally be referred to the online tool.
Taxpayers will be able to use the tool to authenticate, view and print copies of their transcript in one session.
Taxpayers will still also be able to request that a transcript be mailed to their address of record by using the existing online tool or sending in Form 4506T.
A specific date when Get Transcript will be available will be announced early in 2014.
The tool will be available for five types of transcripts: tax account, tax return, record of account, wage and income, and verification of non-filing.
Tax Law Assistance
The majority of tax law questions the IRS receives each year are about basic tax law issues. This includes questions pertaining to Forms 1040A, 1040 EZ and related items on Form 1040 such as filing status, dependents, exemptions and taxable income.
During each filing season (January to mid-April), the IRS will continue to answer these basic tax law questions.
A small percentage of taxpayers seek help with other, more detailed tax law questions that frequently take more time to address.
Beginning with the 2014 filing season, the IRS will refer taxpayers with these more complex questions to a number of other resources available on IRS.gov, IRS tax publications and the software packages taxpayers may already be using.
This step reflects the continuing adoption of tax preparation software. More than 90 percent of all taxpayers use of tax return preparation software, either on their own or through their tax professional, and the tax law help is included as part of the software.
Most tax law questions are asked during filing season. To focus IRS resources on the filing season, outside of the January – April time frame the IRS will refer all taxpayers with tax law questions to the resources listed above.
Finally, Tax Refund Inquiries
Traditionally, the most common question the IRS receives is about when people can expect to see their refund. In recent years, the IRS has issued more than 90 percent of refunds in less than 21 days.
With the continued growth of the internet and mobile apps, the IRS will direct all refund inquiries during the first 21 days after a taxpayer files electronically to the “Where’s My Refund?” tool available in English and Spanish through the IRS2Go phone app, IRS.gov and the automated telephone service.
IRS customer service representatives will only be able to research the status of a refund if it’s been 21 days or more since the return was filed electronically or more than six weeks since a paper return was mailed to the IRS or if the Where’s My Refund? tool directs them to contact the IRS.
Practitioner Priority Service, yeah us!!!
The Practitioner Priority Service (PPS) provides tax professionals a dedicated channel to resolve taxpayer client account issues. Over the past few years, a growing number of customers who were not tax professionals used this service.
Beginning in January, the IRS will limit PPS to tax professionals and requests related to resolving client related issues. All other requests will be referred to other appropriate resources for service.
This change is expected to help the IRS provide better service to more tax professionals and help free up other resources for customer service.
Employer Identification Number
The IRS’s EIN Online Assistant continues to be a success with more than four million requests processed per year electronically compared to just over 588,000 requests made for an EIN via our manual telephone option.
Beginning with the 2014 filing season, the IRS will refer all EIN requests to the EIN Online Assistant and refer only those with questions about a previously assigned EIN to a live IRS representative
Any savings realized from these initiatives will be reinvested into improving service on the phone and at our walk-in sites.
by Fresh Start Tax | Dec 20, 2013 | Tax Help
News from the IRS to help taxpayers regarding transcripts.
Early in 2014, a new online request option called “Get Transcript” on IRS.gov will allow individual taxpayers with an SSN to instantly view and print a copy of their tax transcripts. With Get Transcript, taxpayers will save both time and effort.
When the new IRS service is available, transcript requests will generally be referred to the online tool.
Taxpayers will be able to use the tool to authenticate, view and print copies of their transcript in one session.
Taxpayers will still also be able to request that a transcript be mailed to their address of record by using the existing online tool or sending in Form 4506T.
A specific date when Get Transcript will be available will be announced early in 2014but will be coming very soon.
The tool will be available for five types of transcripts: tax account, tax return, record of account, wage and income, and verification of non-filing.
IRS getting the job done to help us all.
by Fresh Start Tax | Dec 20, 2013 | Tax Audit, Tax Help
Affordable IRS Tax Audit Help & Representation 954-492-0088
We are a local South Florida tax firm that has been representing taxpayers in South Florida since 1982.
We are composed of former IRS agents, managers, and teaching instructors. We have over 65 years of direct IRS work experience in the local South Florida offices.
While at the Internal Revenue Service we taught tax law to both new and seasoned IRS Agents.
If you are going through an IRS tax audit there is no better tax representation than you can get the people who actually know the systems, the protocols in the settlement formulas.
We understand when to settle or take the case to appeals or get out when the get news good. Each case is different and there are no two cases the same.
We are A+ rated by the Better Business Bureau.
Fresh Start Tax LLC, affordable professional tax firm
- We are comprised of former IRS agents and managers who worked right here out of the local South Florida IRS offices. Also on staff are Tax Attorneys and CPAs.
- We have a cumulative 206 years of professional tax experience and over 60 years of working right here in the South Florida IRS offices.
- We are one of South Florida’s most affordable and experienced professional tax firms.
IRS Facts for IRS Tax Audits:
- The Internal Revenue Service audits approximately 1.5 million taxpayers every year.
- 350,000 are field audits 1,350,000 are mail and correspondence IRS tax audits.
- IRS collects $10.2 million as a result of IRS Tax Audit examinations every year.
- IRS collects $ 5.27 million as a result of IRS audits for document matching programs.
- The most common IRS tax audit is the DIF tax audit. Those are tax returns that have fallen out of the national standards of income and matched expenses or deductions.
IRS Tax Audit Help – IRS Examination Methods
An examination may be conducted by mail or through an in-person interview and review of the taxpayer’s records.
The interview may be at an IRS office (office audit) or at the taxpayer’s home, place of business, or accountant’s office (field audit).
Taxpayers may make audio recordings of interviews, provided they give the IRS advance notice. If the time, place, or method that the IRS schedules is not convenient, the taxpayer may request a change, including a change to another IRS office if the taxpayer has moved or business records are there.
The audit notification letter tells which records will be needed. Taxpayers may act on their own behalf or have someone represent or accompany them.
If the taxpayer is not present, the representative must have proper written authorization. The auditor will explain the reason for any proposed changes.
Most taxpayers agree to the changes and the audits end at that level.
Your Appeal Rights
Appeal Rights are explained by the examiner at the beginning of each audit. Taxpayers who do not agree with the proposed changes may appeal by having a supervisory conference with the examiner’s manager or appeal their case administratively within the IRS, to the U.S. Tax Court, U.S. Claims Court or the local U.S. District Court.
If there is no agreement at the closing conference with the examiner or the examiner’s manager, the taxpayer has 30 days to consider the proposed adjustments and their next course of action.
If the taxpayer does not respond within 30 days, the IRS issues a statutory notice of deficiency, which gives the taxpayer 90 days to file a petition to the Tax Court.
The Claims Court and District Court generally do not hear tax cases until after the tax is paid and administrative refund claims have been denied by the IRS.
The tax does not have to be paid to appeal within the IRS or to the Tax Court.
A case may be further appealed to the U.S. Court of Appeals or to the Supreme Court, if those courts accept the case.
You can call us today for free initial tax consultation and we should be able to predict the results that you will have on IRS tax audit.
If you are you owe back taxes as a result of an IRS tax audit, we will work out a tax settlement.
Call us for a free initial tax consultation and get the IRS tax audit help you need with experienced and affordable tax representation.
We are the fast, friendly and affordable South Florida tax firm.
IRS Tax Audit Help & Representation – Affordable Attorneys & Former IRS – Weston, Coral Springs, Plantation, Sunrise
by Fresh Start Tax | Dec 20, 2013 | IRS Tax Audit, Tax Help
IRS Tax Audit Help & Defense 954-492-0088 Former Affordable IRS Agents who Know the System, since 1982.
We are a local South Florida tax firm that has been representing taxpayers in South Florida since 1982. We are affordable and experienced.
You cannot do any better than hire former IRS agents that know the system inside and out and have trained other IRS agents.
On staff are Former IRS Auditors, Audit Managers and Audit Instructors with a combined 60 years IRS work experience in the local South Florida IRS offices.
While at the Internal Revenue Service we taught tax law.
If you are going through an IRS tax audit there is no better tax representation than you can get the people who actually know the systems, the protocols and the settlement formulas.
Also on staff is a former IRS appellate agent.
We are A+ rated by the Better Business Bureau.
Fresh Start Tax LLC
- We are composed of former IRS agents and managers who worked right here out of the local South Florida IRS offices. Also on staff or tax attorneys and CPAs.
- We have a cumulative 206 years of professional tax experience and over 60 years of working right here in the South Florida IRS offices.
- We are one of South Florida’s most affordable and experienced professional tax firms.
You can call us today for free initial tax consultation and we should be able to predict the results that you will have on IRS tax audit.
If you are you owe back taxes as a result of an IRS tax audit, we will work out a tax settlement.
Being Former IRS Agents and Managers we can tell you, it is not in your best interest to represent yourself during a IRS audit and we should know.
When an IRS agent finds a taxpayer by themselves in a tax audit they pretty much can do whatever they feel because after all they are the law.
Taxpayers going in unrepresented have no idea what the boundaries and restrictions of IRS.
Most taxpayers do not know that they have tax rights during an IRS tax audit and to go in up unrepresented is foolish.
IRS can extend the scope of the tax audit
Keep in mind that an IRS agent has the right to expand the tax audit beyond the scope of the initial paperwork sent to the taxpayer and many times tax professionals can keep the IRS from going much deeper into a taxpayer or companies tax return.
The agent has the right to go three years back an additional time if they feel there are large omissions of income.
Taxpayer should have the best IRS audit defense and audit representation possible. Wet whether it is an individual business or corporate tax return former IRS agents know the system.
Facts of Internal Revenue Service Tax Audits
The Internal Revenue Service audits 1.03% of all tax returns filed.
I would not recommend you play the IRS lottery game because of your tax return false out of the national standards you have an excellent chance of being audited by the Internal Revenue Service.
Nationwide, the IRS audits 1.5 million tax returns per year, that includes both field audits and IRS mail correspondence audits.
359,000 are actually audited by local IRS agents and rest are by mail or correspondence tax audits.
IRS collects $10.2 billion a year as a result of IRS audits by field agents and $5.2 billion a year by document matching programs.
How Returns Are Selected for Examination
The IRS selects returns using a variety of methods, including:
Potential participants in abusive tax avoidance transactions.
Some returns are selected based on information obtained by the IRS through efforts to identify promoters and participants of abusive tax avoidance transactions. Examples include information received from “John Doe” summonses issued to credit card companies and businesses and participant lists from promoters ordered by the courts to be turned over to the IRS.
Computer Scoring.
Some returns are selected for examination on the basis of computer scoring. Computer programs give each return numeric “scores”.
The Discriminant Function System (DIF) score rates the potential for change, based on past IRS experience with similar returns.
The Unreported Income DIF (UIDIF) score rates the return for the potential of unreported income. IRS personnel screen the highest-scoring returns, selecting some for audit and identifying the items on these returns that are most likely to need review.
Large Corporations.
The IRS examines many large corporate returns annually.
Information Matching.
Some returns are examined because payer reports, such as Forms W-2 from employers or Form 1099 interest statements from banks, do not match the income reported on the tax return.
Related Examinations.
Returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for examination.
Others.
Area offices may identify returns for examination in connection with local compliance projects. These projects require higher level management approval and deal with areas such as local compliance initiatives, return preparers or specific market s
Top Question Asked by taxpayers:
How far back can the IRS go to audit my return?
The IRS can include returns filed within the last three years in an audit.
Additional tax years can be added if a substantial error is identified.
If a substantial error is identified, the IRS will not go back more than the last six years.
The IRS tries to audit tax returns as soon as possible after they are filed.
Accordingly most audits will be of returns filed within the last two years.
Statute of Limitations on tax audits
If an audit is for an older year, you may be requested to extend the statute of limitations for assessment of your tax return.
The statute of limitations limits the time allowed to assess additional tax.
The statute of limitations is generally three years after a return is due or was filed, whichever is later.
Refund Statutes – There is also a statute of limitations for making refunds.
If the audit is not resolved and the statute of limitations date is nearing, you may be asked to extend the statute of limitations date.
This will allow you additional time to provide further documentation to support your position, request an appeal if you do not agree with the audit results, or to claim a tax refund or credit.
It also allows the IRS time to complete the audit and provides time to process the audit results.
You do not have to agree to extend the statute of limitations date.
However, if you do not agree, the examiner will be forced to make a determination based upon the information they currently have.
Therefore, the examiner may not be able to consider additional adjustments, such as expenses, that could lower the amount of tax due.
IRS Tax Audit Help & Defense = Affordable Attorneys, Former IRS = Boca Raton, West Palm Beach
