IRS Audit * IRS Appeals Representation * Affordable Former IRS * Know Your Rights – Miami, Ft.Lauderdale, Boca, Palm Beaches

by Fresh Start Tax | Feb 14, 2014 | IRS Tax Audit, Tax Help

 IRS Audit  IRS Appeals Representation

We are former IRS agents and appeals officers who worked out of the local South Florida IRS offices. We are a local tax firm that has been practicing since 1982 right here in South Florida.

We are one of South Florida’s most affordable and expert firms in dealing with IRS audits and appellate matters.

Just because the IRS  issues you report there is no reason to stop there.

There is a IRS appeals process within the IRS appeal.

A good tax representative will know there is a lot more fight within the fight before you need to go tax court.

If you are struggling with the results from an IRS audit and need professional help contact our firm, a team of tax attorneys, CPAs,  and former IRS agents who worked at a local South Florida IRS offices and know the systems, methods, and the strategies to use when dealing with an IRS audit or an IRS appeals case.

Post-Appeals Mediation

Post-Appeals Mediation lets you and your Appeals Officer or Settlement Officer resolve disputes while your case is still under Appeals’ consideration.

Once your PAM application is accepted, the goal is resolution within 60-90 days.

With PAM, a trained mediator from the IRS Office of Appeals is assigned to help you and your Appeals Officer or Settlement Officer reach an agreement on the disputed issue(s).

PAM does not create any special authority for settlement by Appeals.

You retain full control over every decision you make during the PAM process.

No one can impose a decision on either you or Appeals.

The Appeals mediator is specifically trained in mediation techniques and is independent of the Appeals employee with whom you have been working.

In annual customer satisfaction surveys conducted by a non-government company, taxpayers like you have consistently given the independence and impartiality of the Appeals mediator the highest rating of all survey questions.

What are the benefits of settlement over litigation include:

• • Speed

• • Cost

• • Flexibility

• • Control

• • Reduced Risk

Not only this but you can find out the governments position in case if you are contemplating using one of our attorneys to go to tax court.

You Must First:

For your case to be considered for PAM, you must first work cooperatively and try to resolve all issues with the Appeals Officer or Settlement Officer before seeking the services of an Appeals mediator.

When considering PAM, consider what might happen if your case is not settled.

You should ask yourself this :

1. Am I prepared for what could be lengthy and costly litigation?

2. What is my risk that the litigation will be unsuccessful, and what would the consequences be?

PAM is available for both legal and factual disputes.

Certain cases and issues are not eligible for PAM:

• Cases considered by an IRS campus site.

• Issues docketed in any court, designated for litigation, or under consideration for designation for litigation.

• “Whipsaw” issues, which are issues for which resolution with respect to one party might result in inconsistent treatment without the participation of the other party.

• Collection cases, except for certain offer in compromise and Trust Fund Recovery Penalty cases as provided for in Announcement 2011-6.

To apply for PAM, send your Appeals Officer or Settlement Officer a written statement containing:

• A specific request for Post-Appeals Mediation, and

• A written statement detailing your position on the disputed issue(s).

Call us today for free initial tax consultation and we will conduct a systematic overview of your case and come up with a determination as to your odds of success.

IRS Audit * IRS Appeals Representation * Affordable Former IRS * Know Your Rights – Miami, Ft.Lauderdale, Boca, Palm Beaches

Sebring, Lake Placid – IRS Tax Audit, Back Tax Problems – Affordable Tax Attorneys, Former IRS

by Fresh Start Tax | Jan 17, 2014 | IRS Tax Audit, Tax Help

Have former Affordable IRS Agents and Managers represent you during a IRS Tax Audit.

I am a Sebring resident and I have a professional tax firm called Fresh Start Tax LLC who has been representing taxpayers since 1982 in the state of Florida.

I am a Former IRS Agent and teaching Instructor.

Fresh Start Tax LLC provides IRS audit help, IRS audit defense. and successful IRS tax audit representation.

We also handle matter relating to  back filing, tax liens, tax levies and Iris tax settlements.

We are comprised of tax attorneys, certified public accountants, and former IRS agents.

We have over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the IRS.

As a result of our years experience with the Internal Revenue Service, we understand all the IRS systems, the IRS protocols, and IRS settlement formulas to successfully resolve any IRS issue, matter or problem.

We are true experts in IRS tax representation.

The Different Types of Audits conducted by the IRS

1. The famous Correspondence Mail/Audit – 1.4 million a year worth of tax audits

This is the most common type of audit and is simply a letter from the IRS, asking you to provide documentation for tax deductions and credits, or asking for other records.

The IRS conducts over 1.1 million correspondents are male audits every year.  As a result of these correspondence audits IRS collects over $10 billion annually.

These tax audits occurs when your records and the IRS records do not match up.

Many times you forgot to report a W-2 or a 1099, the IRS catches the mistake and will send you out a mail or correspondence tax audit. As a general rule these audits do not take place to year and a half after the initial federal tax return was filed.

It is very important to carefully review your tax return to make sure all W-2 and 1099 information is on that return, if not you can expect an IRS nasty gram about 18 months after filing your initial tax return.

2. IRS Office Audit out of the Local IRS Office.

These are fast and quick IRS tax audits by IRS personal called Office Auditors.

This type of audit involves a letter from the IRS asking you to compile documents from a list they provide you, and then report to your local IRS office to go over them with an IRS office auditor.

Many times these types of small tax audits are used for small businesses, such as those operated from your home.

Many times they will be auditing issues like Hobby losses, travel and entertainment or business expenses that fall on the national norms. IRS does not spend a lot of time on these office audits as the agents are taught to quickly move through them.

When I was working at the Internal Revenue Service the average agent would close 15 the 20 audits on a weekly basis.

3. Field Audit by IRS Revenue Agents, as seasoned IRS Agents, usually a CPA.

This type involves an IRS revenue agent  coming to your home or business to inspect your books and facility, and better understand how the business works.

It is important that you hire a very experienced and effective tax professional because these audits can dig very deep and can be very lengthy .

Being a former IRS agent in teaching instructor I would caution any taxpayer about representing themselves during this type of IRS audit.

As a general rule these audits can last from two weeks up to year depending on the work schedule and the audit issues involved.

This is less common for individuals, but much more common for larger businesses. many times in these type of audits they will look back on prior tax returns and look at individuals involved at their tax returns as well.

They will look at partners of a corporation or LLC and do a thorough examination of all income or business tax records.

These types of audits can result in criminal referrals.

4. TCMP Audit

The TCMP, or Taxpayer Compliance Measurement Program,.

It is the least common type of audit.

This is an audit that occurs completely randomly, and without any evidence that you have done anything wrong, but simply as a sort of spot-checking that the IRS does on randomly selected tax returns every year.

The reason the Internal Revenue Service conducts the tax compliance measurement program it is to determine normal and regional norms for all tax returns and keep them in the IRS computer banks for statistical purposes.

It is important to note when the Internal Revenue Service does a taxpayer compliance measurement audit they will audit the entire tax return yes, everything on it.

So if you need help because you are going to experience an IRS tax audit, contact us today for the best possible local tax defense and representation.

Should you wind up owing back taxes we can go ahead and work out a tax settlement for you with the Internal Revenue Service.

Sebring, Lake Placid – IRS Tax Audit, Back Tax Problems- Affordable Tax Attorneys, Former IRS

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Facing IRS Audit, IRS Audit Representation – Affordable Former IRS, Riveria, Jupiter, Greenacres

by Fresh Start Tax | Jan 17, 2014 | IRS Tax Audit, Tax Help

The affordable, experienced  and trustworthy tax audit solution.

Use former local IRS Agents who understand the audit techniques. We taught Tax Law at the local IRS offices.

If you are facing an IRS audit and need affordable/professional IRS audit representation, call us today for a free initial consultation and you will find out why we are used by hundreds of taxpayers in the South Florida area.

We have been practicing tax representation in South Florida since 1982 and we are A+ rated by the Better Business Bureau.

On our staff are tax attorneys, certified public accountants, and former IRS agents.

Most importantly, on staff are former IRS auditors, former IRS revenue agents and former IRS appellate agents who have worked both sides of the fence both working as IRS auditors and in private practice representing and offering the best IRS audit defense possible.

We can give you a real look at how IRS will audit your return and we will usually be able to  reduce the risk of additional tax and penalties.

Why did the IRS Select your tax return for a Tax Audit

• Random Sample : The percentage of random audits is very low about 1%. These are very difficult tax audits because the IRS audits everything on the return to set up tax audit norms and DIF scores.

• Computer Scoring: All tax returns are scored by the Discriminant Function System (DIF). Each return is graded by IRS agents that are sent to service centers to review returns that have potential IRS audit revenues that could be collected.Basically the IRS establishes a norm, and checks to see if your tax returns fit the norm. The system also rates the potential for adjustments based on historical data and past IRS experience. About 90% of all tax returns are audited because of risk or potential. In our office are former IRS agents who used a grade tax returns at service centers.

• Self Employed or Small Business Losses: The IRS despises small business losses, and hates hobbies even more. If you are showing a hobby loss on your tax return there is extremely good chance you’re asking IRS to say please come out and audit me. These type businesses are usually red flags for IRS audits. Keep in mind many taxpayers are honest but the majority of people who tend the  fudge on their tax returns are found in the area of self-employed and small business.

• High Tax Deductions: If your deductions such as mortgage interest or charitable contributions are outside the average for your income range, you could trigger an IRS audit. If your  deduction is legitimate  do not be afraid to take the deduction. Many times we recommend photocopying the check and the bill and attaching it to your tax return.

• Home Office Deduction: IRS Tax Audits based on home offices  are looked at closely to make sure taxpayers are not abusing income tax law. You should check with a true tax professional before taking the office in the home deduction and find out what the general acceptance standards are.

• Meals, Entertainment and Travel: These expenses have commonly been abused by past taxpayers, and the IRS has historical data showing the averages as compared to income depending on your profession.   Keep very detailed records if you are claiming these deductions.

• Information Matching: Most all W2’s and 1099’s are electronically transmitted to the IRS.  If your tax return is missing a W2 or 1099, or if the amount you report is different than the amount the IRS has in their database, your tax return will be adjusted or audited. You will generally receive an audit notice about 2 years after the mismatch. The Internal Revenue Service collects over $10 billion on these mismatch programs.

• Related Examination: If your business partner’s individual tax return is examined and a particular issue or transaction is discovered, your tax return might be examined as well.  This is not limited to business partnerships. It also includes any transaction or agreement between you and another taxpayer that causes a taxable event on two different tax returns might flag you if one tax return shows a discrepancy. It is also very possible that if a former spouse is audited that your tax return may be picked up as well.

• Abusive Tax Avoidance Transactions: Certain promoters and participants involved in abusive tax avoidance transactions have found themselves in trouble.  From there, the courts and other enforcement agencies have provided lists of names based on credit card data, summons and other testimony to allow the IRS to follow up.  So you might simply be guilty by association.Also IRS is hot on the trial of all non filers of FBAR.

• Large Corporations: The IRS examines many large corporate tax returns on an annual basis. Percentages jump to 10% of all corporate tax returns are audited.

• Other: Field IRS offices in conjunction with local agencies identify certain tax returns for examination based on local compliance initiatives, tax return preparers or specific market segments.

Facing IRS Audit, IRS Audit Representation – Affordable Former IRS, Riveria, Jupiter, Greenacres

IRS Audit Defense, IRS Audit Representation, Affordable Former IRS , Boynton, Delray, Lake Worth, West Palm Beach

by Fresh Start Tax | Jan 15, 2014 | IRS Tax Audit, Tax Help

IRS Audit Defense, IRS Audit Representation, Former IRS

We are the Affordable Local Tax Firm.

Our Staff

We are comprised of tax attorneys, certified public accountants and former IRS agents. We’ve been practicing in South Florida since 1982 in our A+ rated by the Better Business Bureau.

Our firm has over 206 years of professional tax experience right here in South Florida.

Why use Fresh Start Tax LLC

Besides our  affordability we have been former IRS agents, IRS managers, and IRS instructors who taught tax law at the Internal Revenue Service.

We have audited and represented both hundreds of taxpayers, businesses and corporations who have undergone IRS tax audits.

We know IRS audit defense from both sides of the fence.

We know things IRS is looking for and we understand what your best defenses.

Our experience, affordability, A plus BBB rating qualifies us to be one of the most  trustworthy local tax firms in the area.

Come by and see us for a free initial tax consultation

What is a IRS Audit – Do not be worried of Panic

An IRS audit is a review or tax examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate.

IRS Tax Publication 556, Examination of Returns, Appeal Rights and Claims for Refund explains the audit process in more detail. You can find that on line.

The IRS Tax Audit Selection Process

Selecting a tax return for IRS audit does not always suggest that an error has been made on the tax return.

Tax Returns are selected using a variety of methods, including:

1. 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.

2. Random selection and computer screening – sometimes returns are selected based solely on a statistical formula. Each tax return receives a DIF score.

What’s the DIF and how does it apply to you?

The IRS says there are several ways a return can be selected for audit and the first is via the agency’s computer-scoring system known as Discriminant Information Function, or DIF.

The good old IRS evaluates tax returns based on IRS formulas, and DIF is based on deductions, credits and exemptions with norms for taxpayers in each of the income brackets.

The actual computer scoring formula to determine which tax returns are most likely to be in error is a closely guarded secret and only known by a select few.These are the types that would have to kill you than give up the info.

Experts believe one discriminant information function component looks at average deduction amounts.

This allows IRS examiners to spot inconsistencies, such as a high mortgage interest deduction and low income.

So what is likely to trigger a discriminant information function red flag?

1. Higher incomes.
2. Income other than basic wages; for example, contract payments.
3. Unreported income, such as investment returns.
4. Home-based businesses, especially when in addition to salary income, and home-office deductions.
5. Non-cash charitable deductions.
6. Large business meal and entertainment deductions.
7. Excessive business auto usage.
8. Losses from an activity that could be viewed as a hobby rather than a business.
9. Large casualty losses.

3. Document matching – when payor records, such as Forms W-2 or Form 1099, don’t match the information reported.This accounts for over $10 B a year for Uncle Sam.

4. 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 Stats

The Internal Revenue Service collects $10.2 billion a year from IRS audits.

IRS collects $4.2 billion a year from IRS audit appeals.

IRS collects $5.2 billion a year on the document matching program.

There are over 13,000 IRS audit agents.

There are over 359,000 field and office audits every year

1% of all tax returns are audited by the Internal Revenue Service.

IRS Tax 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 Tax Audit Notification

Should your account be selected for audit, you will be notified in two ways and only two ways:

1. mail, or
2. telephone

In the case of a telephone contact, the IRS will still send a letter confirming the audit.

Important Note – E-mail notification is not used by the IRS.

Your Tax Rights During an Audit, your Bill of Rights

Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund processes.

These tax rights include:

A right to professional and courteous treatment by IRS employees.well, kind of courtesy

A right to privacy and confidentiality about tax matters.

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.

A right to representation, by oneself or an authorized representative.

A right to appeal disagreements, both within the IRS and before the courts.

What Happens When You DISAGREE with the IRS Tax 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.

IRS Audit Defense, IRS Audit Representation, Former IRS , Boynton, Delray, Lake Worth, West Palm Beach

IRS Audit Defense, IRS Audit Representation, Former IRS – Oakland Park, Wilton Manors, Tamarac, Lauderhill – Broward County, Florida

by Fresh Start Tax | Jan 14, 2014 | IRS Tax Audit, Tax Help

We are the Affordable choice!

Do not be in fear if you have just received a IRS Tax Audit Notice.

We are  comprised of tax attorneys, certified public accountants and former IRS agents. We’ve been practicing in South Florida since 1982 in our A+ rated by the Better Business Bureau.

Our firm has over 206 years of professional tax experience right here in South Florida.

So,what is  an IRS audit.

An IRS audit is a review or tax examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate.

IRS Tax Publication 556, Examination of Returns, Appeal Rights and Claims for Refund explains the audit process in more detail. You can find that on line.

The IRS Tax Audit Selection Process

Selecting a tax return for IRS audit does not always suggest that an error has been made on the tax return.

Tax Returns are selected using a variety of methods, including:

1. 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.

2. Random selection and computer screening – sometimes returns are selected based solely on a statistical formula. Each tax return receives a DIF score.

What’s the DIF and how does it apply to you?

The IRS says there are several ways a return can be selected for audit and the first is via the agency’s computer-scoring system known as Discriminant Information Function, or DIF.

The  good old IRS evaluates tax returns based on IRS formulas, and DIF is based on deductions, credits and exemptions with norms for taxpayers in each of the income brackets.

The actual computer scoring formula to determine which tax returns are most likely to be in error is a closely guarded secret and only known by a select few.These are the types that would have to kill you than give up the info.

Experts believe one discriminant information function component looks at average deduction amounts.

This allows IRS examiners to spot inconsistencies, such as a high mortgage interest deduction and low income.

So what is likely to trigger a discriminant information function red flag?

1. Higher incomes.
2. Income other than basic wages; for example, contract payments.
3. Unreported income, such as investment returns.
4. Home-based businesses, especially when in addition to salary income, and home-office deductions.
5. Non-cash charitable deductions.
6. Large business meal and entertainment deductions.
7. Excessive business auto usage.
8. Losses from an activity that could be viewed as a hobby rather than a business.
9. Large casualty losses.

3.  Document matching – when payor records, such as Forms W-2 or Form 1099, don’t match the information reported.This accounts for over $10 B a year for Uncle Sam.

4. 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 Tax 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 Tax Audit Notification

Should your account be selected for audit, you will be notified in two ways and only two ways:

1. mail, or
2. telephone

In the case of a telephone contact, the IRS will still send a letter confirming the audit.

Important Note – E-mail notification is not used by the IRS.

Your Tax Rights During an Audit, your Bill of Rights

Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund processes.

These tax rights include:

• A right to professional and courteous treatment by IRS employees.

• A right to privacy and confidentiality about tax matters.

• 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.

• A right to representation, by oneself or an authorized representative.

• A right to appeal disagreements, both within the IRS and before the courts.

IRS Tax 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.
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 IRS Tax 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.

IRS Audit Defense, IRS Audit Representation, Former IRS – Oakland Park, Wilton Manors, Tamarac, Lauderhill – Broward County, Florida