by Fresh Start Tax | Mar 26, 2019 | Tax Help
If the IRS has decided to look at your business and conducting the due diligent audits contact former IRS agents who know the system.
We are A+ rated by the BBB and have been in practice since 1982. we know the system inside and out and all the methodologies used by Internal Revenue Service.
The IRS is making it a point and they are teamed with a myriad of IRS agents to close the loopholes that some tax preparers have been using the illegal filing of tax returns or abuse of particular tax credits.
Many of these preparers are actually doing the right thing but for various reasons IRS has flagged the person or their practice because of various reasons.
The Internal Revenue Service has a special team of agents going out that will handle these issues.
You must take this seriously because some preparers have been put in prison other stiff penalties while others IRS just simply said continue the work you’re doing.
If you are behind the eight ball and you think you are being pressed by Internal Revenue Service it only makes sense to hire former IRS agents who know the system and have been involved in these audits.
Let experience be your best friend.
IRS Auditing for Due Diligence Compliance
Audits for compliance with refundable credit and head of household (HOH) filing status due diligence requirements are another tier of our Preparer Compliance Program.
IRS looks returns with a high chance of errors completed by the same preparer and use that information to select preparers for audits.
IRS may have contacted the preparer using one of the other tiers of our Preparer Compliance Program but we don’t use all of them for every preparer.
Audit Visits
Before the filing season begins, IRS employees conduct due diligence audits based on the prior year returns. We schedule an appointment in advance for these pre-filing season audits and we expect preparers to schedule the audit within 15 days.
During the filing season, we conduct due diligence audits without advance notice. We previously sent the preparers a letter informing them of a potential audit. (see Reaching Out to Preparers for examples of the letters)
We may also audit the preparer’s client returns.
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 given by your client
• 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.
* The penalty amount is adjusted for cost of living under IRC Section 6695(h).
by Fresh Start Tax | Mar 26, 2019 | Tax Help
Former IRS agent to know the system provide your very best tax defense. Since 1982, A plus Rated.
We are former IRS agents, managers and teaching instructors. Since 1982 A+ rated by the BBB.
We are the affordable professional firm to help tax preparers fight the Internal Revenue Service.
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.
Tax Preparer Audits + IRS Tax Audits For Tax Compliance + EITC, HOH, CTC, AOTC
by Fresh Start Tax | Mar 26, 2019 | Tax Help
IRS AUDIT + IRS Tax Preparer Audit & Investigation Help * former irs agents representation+ Dallas, Houston, San Antonio, Austin
We are former IRS agents, managers and teaching instructors. Since 1982 A+ rated by the BBB.
We are the affordable professional firm to help tax preparers fight the Internal Revenue Service.
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.
by Fresh Start Tax | Mar 26, 2019 | Tax Help
We are former IRS agents, managers and teaching instructors. since 1982 A+ rated by the BBB.
We are the affordable professional firm to help tax preparers fight the Internal Revenue Service.
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.
by Fresh Start Tax | Mar 25, 2019 | Tax Help
:
If you are a tax preparer and IRS is breathing down your neck call us today to hear the truth about what the next steps should be.We can stop the IRS.
We are specialized tax experts for all IRS matters and problems. We are former IRS agents managers and teaching instructors.
We are nationwide tax from doing work in all 50 states including New York, New York City, Los Angeles, Houston.
We are A+ rated by the Better Business Bureau and have been in practice since 1982. We are true tax experts for any preparer undergoing an IRS audit for due diligence.
The Internal Revenue Service has set up special IRS audit groups to audit tax preparers for due diligence compliance issues.
The Internal Revenue Service over the years have found out the majority of refunds that have been fraudulently given out have come from a group of tax preparers who do not have the wherewithal to understand the importance of their clients finally correct tax returns.
IRS’s found billions of dollars in fraudulent refunds have been given out because of this tax preparer base and Congress is mandated them to do something about it.
Special-teams of IRS auditors have been equipped to review tax preparers for different compliance issues.
Make sure you get expert representation or you will wind up possibly out of business the possibility of criminal charges or paying hefty fines and penalties.
Call us today for free initial tax consultation and get full representation so you’ll never have to speak to the Internal Revenue Service.
Do not be a victim of thousands and thousands of dollars in penalties and interest.
We are nationwide tax firm consisting of CPAs, former IRS agents, managers and teaching instructors.
We understand all the methodologies and everything that the Internal Revenue Service will throw at you during a tax audit.
We have represented thousands of clients and can help you during an IRS tax audit
IRS Facts:
People who come to you, a tax return preparer, expect you to know the tax law and prepare an accurate return.
Further, if you are paid to prepare returns claiming the earned income tax credit (EITC), the child tax credit (CTC), the additional child tax credit (ACTC), the credit for other dependents (ODC), the American opportunity tax credit (AOTC) or the head of household (HOH) filing status, you must meet specific due diligence requirements.
There are consequences of not meeting your due diligence requirements for you, for your client, and if you are an employee, your employer.
Incorrect Refundable Credits and Head of Household Filing Status Returns Affect Your Clients, You and Your Employer
If we examine your client’s return and deny all or a part of the EITC, the CTC, the AOTC, or HOH filing status, your client:
◦ must pay back any amount in error with interest;
◦ may be subject to the 20 percent accuracy-related penalty and the 75 percent fraud penalty
◦ may need to file Form 8862, Information To Claim Certain Refundable Credits After
Disallowance
◦ may be banned from claiming one or more of the credits for the next two years if we find the error is because of reckless or intentional disregard of the rules;
◦ may be banned from claiming one or more of the credits for the next ten years if we find the error is because of fraud.
If we examine the EITC, CTC, AOTC or HOH filing status claims you prepared and we find you did not meet all four due diligence requirements, the consequences for you are:
• a $500* penalty (indexed for inflation) for each failure to comply with your due diligence requirements (reference: IRC section 6695(g) and (h))
• A minimum penalty of $1,000 if you prepare a client return and IRS finds any part of the amount of taxes owed is due to an unreasonable position (reference: IRC section 6694(a))
• A minimum penalty of $5,000 if you prepare a client return and IRS finds any part of the amount of taxes owed is due to your willful, reckless or intentional disregard of rules or regulations
IRS can also penalize an employer or employing firm if an employee fails to comply with the due diligence requirements.
There are specific circumstances when an employer is subject to the due diligence penalty (reference: Treasury Regulations 1.6695.2(c)).
* Indexed for inflation, the penalty per failure for returns prepared after 2018 is $520 for each credit or HOH filing status claimed on a return.
This could mean up to four due diligence penalties per return when the return claims for the EITC, the CTC, the AOTC and HOH filing status.
For a tax return prepared after 2018, the penalty can be $2,080.
If you receive a return-related penalty, you can also face:
• Suspension or expulsion of you or your firm from IRS e-file
• Disciplinary action by the IRS Office of Professional Responsibility
• Criminal penalties for filing fraudulent returns
• Injunctions barring you from preparing tax returns or imposing conditions on the tax returns you may prepare.
Call us today for a free initial tax consultation and be represented by true IRS tax experts. We are the affordable choice. You will never have to speak to Internal Revenue Service.
Tax Preparer Faced With IRS Compliance Tax Audit * former irs agent expert tax help + New York, New York City, Los Angeles, Houston
