by Fresh Start Tax | Jan 30, 2014 | Tax Help
IRS, State Tax Audit Representation – Audit Tax Experts, since 1982W
We are a professional tax firm that specializes in IRS and State of Florida Sales Tax audits
We are a Florida Tax Firm.
We are the affordable tax experts that have been practicing in the state of Florida since 1982.
We are A+ rated by the Better Business Bureau.
On staff are tax attorneys, CPAs, and former IRS and state tax auditors.
There are many excellent professional tax firms that can represent you for IRS or state tax audit, make sure you check on the credentials of the tax professionals.
You can call us today for a free initial tax consultation and we can evaluate the state of your case.
Know Your Taxpayer Rights
The IRS trains its employees to explain and protect taxpayers’ rights throughout their contacts with taxpayers.
Your Federal the State rights include:
- A right to professional and courteous treatment by IRS/State employees.
- A right to privacy and confidentiality about tax matters.
- A right to know why the IRS is asking for information, how the IRS
- State will use it and what will happen if the requested information is not provided.
- A right to representation, by oneself or an authorized representative.
- A right to appeal disagreements, both within the IRS/State and before the courts.For more information on the appellate process you can speak to us individually and we will walk you to the process.
How Your Tax Return May Have Been Selected for Examination ( this is not an All inclusive list.)
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.
Keep in mind right now the Internal Revenue Service is monitoring all offshore banking and those with investments overseas.
On staff is a tax attorney that specializes in overseas banking transactions and its aspect on tax and FBAR.
Computer Scoring.# one reasons for tax audits
Some returns are selected for examination on the basis of computer scoring. Computer programs give each return numeric “scores”.
1. The Discriminant Function System score rates the potential for change, based on past IRS experience with similar returns.
2. The Unreported Income DIF (UIDIF) score rates the return for the potential of unreported income.
IRS tax auditors will screen the highest-scoring returns, selecting some for audit and identifying the items on these returns that are most likely to need review.
Information Matching.Commonly W-2’s, 1099’s.
Some tax 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. the IRS audits 1.4 million taxpayers using this matching program.
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.
Other Targets Tax Audits
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 segments. many times these are local programs looking at local segment markets.
A good example of this would be cities located within a resort area. The IRS or the state may audit hotels restaurants in other sundry locations involving the resort markets.
IRS /State Audit Examination Methods
An examination may be conducted by mail or through an in-person interview and review of the taxpayer’s records.
The agent 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.
IRS, State Tax Audit – Affordable Representation Help – Attorneys, Former IRS – Kissimmee, Haines City, Deland, Ocala
by Fresh Start Tax | Jan 30, 2014 | Tax Help
We are the Affordable Tax Experts.
We are professional tax firm located in the state of Florida that has been practicing since tax resolution since 1982.
We are the affordable tax experts.
We were A+ rated by the Better Business Bureau and we have over 206 years of professional tax experience.
If you are undergoing an IRS tax audit, need back tax help, or considering in IRS tax settlement contact one of our tax professionals today and we can go over the various options and remedies to immediately and permanently resolve your state or federal tax problems.
Our firm is comprised of tax attorneys, certified public accountants, enrolled agents, and former IRS and state tax agents.
Our staff is accumulative 76 years of IRS and state tax experience in the local, district, and regional tax offices.
We handle all back and unfiled tax returns and work out an IRS tax settlement called an offer in compromise should you owe back taxes to the IRS.
Being former IRS agents and managers we understand all the protocols and settlement used by Internal Revenue Service to ensure the lowest possible tax settlement.
Which Issues does IRS look at for Audit Tax Returns
1. High incomes.
Your chance of being audited substantially increases once your income crosses $200,000, according to a recent IRS report on its enforcement activity.
2. Large itemized deductions.
Deduct every penny you’re entitled to but you must realize that if your itemized tax deductions are bigger than the IRS’ target range for people at your income level, your return may get a second look.
3. Home offices deductions.
You can only take a home office deduction if you meet all of the qualifications, including regularly and exclusively using part of your home as your principal place of business. For example, if your office doubles as the kids’ playroom, you’re generally unable to deduct it.
4. Missing investment income.
You know the IRS Form 1099 that financial services companies send you that summarizes your interest and dividends for the year? The IRS also gets that information. Make sure your return properly includes this information.
5. Business losses.
Remember your tax return must make sense. If your business loss seems out of proportion to you it probably is in the same way out of proportion to Internal Revenue Service. remember that irises can compare your tax return to others in their computer programs are set up to kick out audits that fall out of the norms.
6. Charitable deductions.
You’ll need a canceled check or dated receipt for any cash contributions, and contributions of $250 or more require written acknowledgement from the charity. If you made a non-cash contribution valued at more than $5,000, you’ll need an expert appraisal to back up your claim.
7. Medical expenses.
If you’re 64 or younger, you can deduct these costs only to the extent they’re greater than 10% of your adjusted gross income. It’s important to keep detailed records.
Beware – you cannot deduct the cost of over the counter medicine, health club dues or most cosmetic surgeries. Nice try.
8. Unreported Foreign Income
The Internal Revenue Service has made it their mission to go after overseas money belonging to taxpayers that have hidden it offshore.
If you have unreported foreign income and need to file an Fbar report. call and speak directly your tax attorneys today.
9. The DIF Audit
Be aware that every tax return filed is graded and scored by the Internal Revenue Service. If your tax return falls out of the norms and standards used by the Internal Revenue Service they will take a much closer look to find out whether your tax return is audit worthy.
Contact us today for free initial tax consultation.
by Fresh Start Tax | Jan 30, 2014 | Tax Help
State of Florida Sales Tax Audit
We are a team of tax professionals who can represent your best interest during a state of Florida tax audit and save you money.
We are the Affordable professional tax firm.
Our firm is comprised of tax attorneys, certified public accountants, enrolled agents, former IRS agents and most importantly former sales tax auditor.
The firm has over 206 years of professional tax experience in over 76 years of working directly for the Internal Revenue Service and the state of Florida Department of revenue, Sales Tax Division.
You can call us today for a free initial tax consultation.
We have been in private practice since 1982 and we are A+ rated by the Better Business Bureau.
Why Are Taxpayers Audited by the State of Florida, Department of Revenue.
The State of Florida audit taxpayers to:
- Enforce Florida tax laws uniformly.
- Promote voluntary compliance.
While the State accepts most tax returns as filed, we audit some returns to verify accuracy and evaluate compliance.
Sales Tax Audits do not always result in the taxpayer owing additional tax, penalty or interest.
The auditor may adjust a credit carryover or correct distribution without assessing additional tax.
The auditor may even determine that a refund is due.
How Are Taxpayers Selected for Audit?
The methods for selecting a business or individual to audit vary from tax to tax. Here are some examples of sources we use to identify a potential audit candidate:
- Internal Revenue Service information.
- Information sharing programs with other states and state agencies.
- Computer-based random selection.
- Analysis of Florida tax return information.
- Business publications, periodicals, journals, and directories.
- Many times individuals and businesses and corporations are turned in by third parties or ex-employees.
What Types of Records Will I Need to Provide?
The types of records may include, but are not limited to:
- General ledgers and journals
- Cash receipt and disbursement journals
- Purchase and sales journals
- Sales tax exemption or resale certificates
- Any other records that the sales tax auditor may want or discovered during the course of the sales tax audit.
Record Keeping
You must keep your records for three years since an audit can extend back that far.
The Department may audit for periods longer than three years if you did not file, or filed a substantially incorrect return or payment.
State of Florida Tax Audit – Attorneys, CPA’s, Former Agents – 1-866-700-1040 – Sales Tax Experts
by Fresh Start Tax | Jan 30, 2014 | Tax Help
We are one of Florida’s premier and expert tax firms for IRS and State audit help, defense and federal and state tax representation.
If you will wind up owing money we will recommend different settlement solutions.
We have over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service.
Also on staff is a former sales tax auditor with 16 years direct experience working for the state of Florida Department of revenue.
We cover the entire state of Florida and have been doing so since 1982.
We are A+ rated by the Better Business Bureau.
IRS Tax Audit Selection
Selecting a tax 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.
IRS Audit Methods
An audit 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).
The IRS will tell you what records are needed. Audits can result in no changes or changes. Any proposed changes to your return will be explained.
IRS Audit Help, Defense, Representation – Former IRS – Marco, Naples, Sannibel, Captiva – State Sales Tax Help – Florida
by Fresh Start Tax | Jan 30, 2014 | Tax Help
Which 1040 Tax Form Should You File
Which form should you use to file your federal income taxes?
Most people use a computer to prepare and e-file their tax forms.
It’s easy, because tax software selects the right form for you.
If you file on paper, you’ll need to pick the right form to use.
It has free tax software or a Fillable Forms option that allows you to fill in your tax forms using a computer.
You can e-file the completed forms for free!
If you still prefer paper and pen, here are some tips on how to choose the best form for your situation.
You can generally use the 1040EZ if:
1. Your taxable income is below $100,000;
2. Your filing status is single or married filing jointly;
3. You are not claiming any dependents; and
4. Your interest income is $1,500 or less.
5. The 1040A may be best for you if:
Your taxable income is below $100,000;
You have capital gain distributions;
You claim certain tax credits; and
You claim adjustments to income for IRA contributions and student loan interest.
However, reasons you must use the 1040 include:
Your taxable income is $100,000 or more;
You claim itemized deductions;
You are reporting self-employment income; or
You are reporting income from sale of a property.
Read more about which form to use in IRS Publication 17, Your Federal Income Tax. The quickest way to get tax forms and instructions is to visit IRS.gov and click on the ‘Forms & Pubs’ tab.
New tax forms often appear online well before the printed forms are available.
You can also have forms mailed to you by calling the IRS at 800-TAX-FORM (800-829-3676), or you can pick them up at a local IRS office. Some libraries and post offices also have tax forms.
