IRS AUDIT + IRS Tax Preparer Audit & Investigation Help * former irs agents representation+ Dallas, Houston, San Antonio, Austin
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Internal Revenue Service is making it a point to go after tax preparers who may be taking advantage of certain credit items that IRS offers the taxpayers.
As a result of this new mandate from the Internal Revenue Service, the service will be looking at tax preparers for random checks or those whose numbers have been pulled or flagged by the Internal Revenue Service CADE 2 computerized system.
It is very important that you have professional and experience representation.
If the IRS finds enough errors the IRS has the option of proceeding criminally, apply civil penalties or place sanctions and severe penalties on the company or the individuals.
Call us today to discuss your case and let truly experienced, affordable and former IRS agents defend you during an IRS tax audit.
You will never have to speak to Internal Revenue Service.
What Happens During the Audit?
During these audits, the IRS employee provides official IRS identification. The examiner interviews you about your business practices.
If you are an employee of a tax preparation firm, the examiner also contacts your employer for an interview.
The examiner is looking for compliance with all four due diligence requirements.
The examiner reviews at least 25 returns reviewing the following documents:
• The preparer’s due diligence records,
• The probing questions the preparer asked the client, and the client’s responses,
• All questionnaires, checklists, worksheets and
• Copies of any client provided documents relied on to determine eligibility for head of household (HOH) filing status, or to determine eligibility for, or compute the amount of , the earned income tax credit (EITC), child tax credit (CTC), including additional child tax credit (ACTC) and credit for other dependents (ODC), and American opportunity tax credit (AOTC).
If the examiner identifies failures to meet due diligence on any of the returns, they may expand the audit to more returns.
During the audit, the examiner looks for evidence showing the preparer met the knowledge standard.
To meet the knowledge standard, a preparer must:
• Know the law
• Ask the right questions, especially when the client gives information that appears incorrect, inconsistent or incomplete
• Document the questions asked and the responses
• Get all the facts to make sure your client truly qualifies for EITC, CTC/ACTC/ODC, AOTC or HOH filing status
While auditing for due diligence, we also ensure that the preparer is in compliance with the PTIN, Preparer Tax Identification Number requirements and his or her personal tax return filing requirements.
What Happens if My Records Don’t Show I Met Due Diligence Requirements?
We assess penalties when we find a preparer did not comply with due diligence requirements. We continuously improve our audit selection process to find those preparers with a high likelihood of filing returns with errors. Using this process, we penalized over ninety percent of the preparers we selected for audit. We assess most penalties against preparers who did not meet the knowledge standard.
The penalty for not meeting due diligence requirements is $520* for each credit (EITC, CTC/ACTC/ODC and AOTC), or HOH filing status claimed on a return filed in 2019.
Other return-related preparer penalties can be as much as $5,000.
Call us for free initial tax consultation and let our experience be your best friend.
Make sure you take your IRS audit as a tax preparer seriously, IRS has many available tools to go over and sanction both companies and individuals.
