by Fresh Start Tax | Sep 12, 2012 | Florida Sales Tax, IRS Tax Audit, Sales Tax, Tax Help
IRS & State Tax Audit Help & Defense – Former IRS Agents – Affordable – Miami, Ft.Lauderdale, Palm Beaches – Tax Experts 954-492-0088
We are comprised of tax attorneys, CPAs and former IRS agents and managers who worked out of the cell floor Internal Revenue Service offices.
We were 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 offices of the Internal Revenue Service.
We are A+ rated by the BBB.
If you are having a IRS or a State of Florida Tax Audit and need to hire tax experts in Tax Audit and Tax Defense it only makes sense to hire true tax professionals who worked for the IRS and know the rules and laws of the State of Florida to represent your best interest
We can save you money and worry!
We taught Tax Law at the IRS and have on staff Former IRS Audit Managers and Former IRS Appeals Agents.
We have over 60 years of direct working experience with the IRS in the local, district and regional offices of the right here in South Florida.
You can call our office for a no cost professional consultation. 954-492-0088.
It is important to know that we have handled hundreds and hundreds of tax audits since 1982.
Each tax audit is different. Being Former IRS agents we will have a complete understanding on how to get these audits over as fast as possible and save you monies.
We also have on staff a Former IRS Appeals Agent that reviews each case to prepare for a tax appeal if necessary.
How Are Taxpayers Selected for a IRS or State Tax Audit?
The methods for selecting a business or individual to audit vary from agency to agency and tax to tax. Here are some examples of sources both the IRS and State of Florida use to identify a potential audit candidate:
- Internal Revenue Service information swapped to the State of Florida,
- Information sharing programs with other states and state agencies.
- Computer-based random selection.
- The DIF score is the number reason of a tax audit. The DIF score means that your tax return fell out the the national averages to certain targeted items,
- Analysis of Florida tax return information and past IRS tax returns.
It is important to know that there are statutes of limitations for both the IRS and State. There is a limit on how far each Agency can go back and examine tax returns.
Call us for more details. 954-492-0088.
We are one of the finest professional tax firms for IRS and State of Florida Tax Audit Help Defenses.
IRS & State Tax Audit Help & Defense – Former IRS Agents – Affordable – Miami, Ft.Lauderdale, Palm Beaches – Tax Experts
by Fresh Start Tax | Sep 6, 2012 | IRS Tax Advice, IRS Tax Audit, IRS Tax Experts
Why are tax returns selected for a IRS tax audit?
The answer is a simple one. The IRS has guidelines and boundaries they have placed over the years and they can pretty well tell which tax returns will yield them IRS audit bucks.
I worked for the IRS for 10 plus years and it is easy to tell which tax returns the computer system will kick out for a IRS tax audit.
On staff at Fresh Start Tax LLC we have over 60 years of direct work experience in the local, district and regional offices of the IRS.
Reason Tax Returns are selected for a IRS tax audit.
There are many reasons tax returns are selected for audit and the one answer used across the board is a simple one, your tax return fell out of the national standard based on your Gross Income and line item inputs.
IRS keeps very close statistical numbers on what the national norms should be.These formulas are secret, kind of like the formula for Coca Cola.
Each tax return is coded into the IRS computer system by line items. If 5 or more of your line items run to high there is a good possibility that tax return will be bouncing out for a IRS tax audit.
Every tax return is graded and depending on the IRS budget, the IRS will audit those tax returns with the highest scores.
Different Types of IRS Tax Audits
1. The first type of tax audit is called the TCMP or the “audit from hell”.
IRS audits each and every line item on your tax return. IRS will randomly pull some 10,000 tax returns across the broad spectrum. The results from these audits are used by the IRS to compile statistical information that will be used to find areas of negligence.IRS will then target the highest area of abuse.
2. The second type of IRS audit and the most popular is the DIF.
This is the number one source of tax audits. Your tax return will be evaluated based on your “DIF” score, a set of IRS formulas known as the “Discriminate Function System.”
About 80% of all tax returns audited are selected by the DIF system which compares deductions, credits, and exemptions ( line items) with the norms for similar taxpayers in each income tax bracket.
3. Market Specialization Program.
These audits are the most popular type of business audit for larger corporations . IRS has trained agents in all walks of businesses. They have studied for hundreds of hours and have a complete understanding of the unique features of that particular business. An example of this is agriculture. Special trained IRS Agents will only audit the agriculture sector so they get to develop a market specialty in that area. IRS has a whole host of specialization programs.
4. High Dollar Cases
Although the overall individual audit rate is about 1.10%, the odds increase for higher income filers. IRS statistics show that people with incomes of $200,000 or higher had an audit rate of 3.87%, or one out of slightly more than every 25 returns.
If you make over one million dollars there’s a one-in-eight chance your return will be audited.
5. Matching programs of the IRS. ( W-2, 1099 )
The IRS gets copies of all 1099s and W-2s you receive from third parties. IRS computers match up the W-2’s and 1099’s with the income shown on your return. A mismatch sends up a flag and causes the IRS computers to send out a match audit letter. 1.4 million letters like this are sent out each year.
If you receive a 1099 or W-2 showing income that isn’t yours or listing incorrect income, get the issuer to file a correct form with the IRS immediately .
6.. Large Charitable Deductions.
IRS computers know what the average charitable donations should be for folks at your income level. IRS knows this is a area of great abuse. If you deduction falls out of the normal range expect a IRS audit letter. Many times we encourage taxpayers who have a large deduction to attach it to your tax return.
7. Claiming the home office deduction.
This is a huge target for the IRS. Many taxpayers feel their whole house should be written off and take liberties of adding many extras when taking this deduction. Be careful to only take what the law allows. Call us for more details.
7. Deducting Travel and Entertainment
Talk about abuse. IRS will ask for every receipt and complete documentation for travel and entertainment. They will want to know who you took and how that relates to future business income. Advice here, document, document, document.
8. Claiming 100% business for you vehicle.
Another favorite target of the IRS. Most taxpayer think the IRS auditor will never go over a auto log. Think again. Some agents live to review auto logs as boring as it sounds. They will compare your daily business with the travel log to make sure everything matches up.
9. Failing to report a Foreign Bank Account FBAR
With the breakthrough a UBS other governments and banks caved in to the US and turned over the names and the accounts for taxpayers with foreign bank accounts. After the first 3 years the Feds have collected over $5.5 billion. IRS will be on the prowl. 33,000 persons came forward and IRS knows this is just the tip of the iceberg.
10. Engaging in currency transactions
The IRS gets many reports of cash transactions in excess of $10,000 involving banks, casinos, car dealers and other businesses, plus suspicious-activity reports from banks and disclosures of foreign accounts. Be careful not to play the $9500 game to avoid detection.
You can stay out of an IRS audit. Call us and allow us to audit proof your tax return. 1-866-700-1040
by Fresh Start Tax | Aug 9, 2012 | Florida Sales Tax, IRS Tax Audit, Tax Lawyer
Florida Sales Tax Audit – Sales Tax Attorneys, Former Agents – Fresh Start Tax LLC 1-866-700-1040
We can take away your fear and anxiety on these Florida Sales Tax Audits. Our Sales Tax Attorneys and Former Agents have successfully represented thousands of clients since 1982.
Free tax consultations available. Call us today and find out the truth about your case. We are A+ rated by the Better Business Bureau.
Call us for a no cost consult and hear the truth. You will never have to speak to the Sales Tax Department, ever! We are Florida Sales Tax Audit Specialists.
We are a professional tax firm specializing in Federal & State Tax Representation. We are comprised of Tax Attorneys, CPA’s and Former IRS Agents. Our Sales Tax Attorneys are some of the best. In most cases, Sales Tax Attorneys are only used in criminal cases.
We have taught Tax Law and we are some the the leading authorities on Sales Tax Audits in the State of Florida. We can save you money.
Why Are Florida Taxpayers Audited by Sales Tax Division?
State of Florida Department of Revenue Audits tax returns to:
1. Enforce Florida tax laws uniformly,
2. Deter tax evasion,
3. Promote voluntary compliance,
Florida Sales Tax Audits are conducted to verify accuracy and evaluate compliance. Sometimes they conduct special compliance audits. The Department is numbers driven and must audit so many returns and collect a given amount each year.
Audits do not always result in the taxpayer owing additional tax, penalty or interest.
The auditor at times, may adjust a credit carryover or correct distribution without assessing additional tax. Many Sales Tax Audits are no changes.
How Are Taxpayers Selected for Audit by the Sales Tax Division ?
The methods for selecting a business or individual to audit vary from tax to tax. Here are some examples of sources the Sales Tax Division uses to identify a potential audit candidate:
1. Internal Revenue Service information or other government referral,
2. Information sharing programs with other states and state agencies.
3. Computer-based random selection.
4. Analysis of Florida tax return information.Many times auditors can eyeball incorrect tax returns.
What types of records you will need to provide during the Sales Tax Audit:
The Florida Department of Revenue will notify you of there intent to audit, they will also tell you what records you will need to provide during the Florida Sales tax audit.
The types of records may include, but are not limited to:
1. General ledgers and journals
2. Cash receipt and disbursement journals
3. Purchase and sales journals
4. Sales tax exemption or resale certificates
5. Florida tax returns
6. Federal tax returns
7. Depreciation schedules
8.Property records
How long do you need to keep your tax records?
You must keep your records for three years since an audit can extend back that far. The Florida Department of Revenue may audit for periods longer than three years if you did not file, or filed a substantially incorrect return or payment.
Sales Tax Attorneys, Florida Sales Tax Audit, Former Agents, Fresh Start Tax LLC – FLORIDA
by Fresh Start Tax | Jul 17, 2012 | Back Taxes, Expatriate Tax, IRS Tax Audit, Tax Help, Tax Lawyer
Expatriate Tax Audits 1-866-700-1040
We are a professional tax firm specializing in Expatriate Tax Representation.
Call us for a free tax consultation. 1-866-700-1040. Speak DIRECTLY to a tax professional.
Let us take the worry and fear out of IRS. Let our years of experience be your best friend. We know how to fight back and win.
We are a specialty tax firm comprised of Board Certified Tax Attorneys, CPA’s and Former IRS agents and managers.
We have over 60 years with the IRS in the local, district and regional offices. We have over 205 years of professional tax experience.
If you are expecting a IRS tax audit or you will owe back taxes, call us for a no cost professional tax consultation. Should you owe back taxes to the IRS we will review the possibility of a IRS tax debt settlement called an offer in compromise.
We taught Tax Law at the IRS
How the IRS Selects Tax Returns for Examination
The IRS selects returns 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.Computer Scoring. The IRS computer system has kicked out your tax return.
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 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.
3. Large Corporations( over 5 millions dollars.)
The IRS examines many large corporate returns annually.
4.Information Matching.
IRS examines over 1.4 million taxpayers through this form of audit.
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.
5. Related Examinations.( because they found errors on related tax returns to yours)
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.
6. Specialized Programs
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.
Expatriate Tax Audits, Owe Back Taxes, Settlements, Offer in Compromise – IRS Tax Experts
Call us today for a no cost professional tax consult. 1-866-700-1040.
by Fresh Start Tax | Jul 11, 2012 | IRS Tax Audit, IRS Tax Experts, IRS Tax Problem, Representation, Tax Audit, Tax Lawyer, Tax Problem Help
We are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents. We are true IRS Tax Audit Experts. We taught Tax Law at the IRS and know all the procedures, policies and settlement techniques.
Call for a no cost consult. 1-866-700-1040.
We have over 60 years of direct work experience at the IRS at all levels. We have worked as:
1. Revenue Agents,
2. IRS Auditors ,
3. IRS Audit Managers,
4. Appeals Agents,
5. Revenue Officers,
6. We also taught Tax Law at the IRS.
Our firm has a total of 205 years of total tax experience and have been practicing since 1982 and have a “A” rating with the BBB.
FBAR IRS TAX AUDITS
With IRS collecting over $4.4 billion bucks in past FBAR monies over the past 3 years, the IRS is setting up special groups to deal specifically with FBAR tax audits. Also, the IRS is modernizing its CADE computer system with the latest version, CADE 2. With that in place it will allow the IRS to track taxpayers and successful integrate income tracking software to find unreported income, tax returns and unfiled FBAR reports.
FBAR tax audits are very time consuming and can last anywhere from 3 months to well over a year.
Many times the IRS Tax Auditor reviewing your case can be very unreasonable and just want to close out your case. We find this is true with FBAR tax audits.
We know all the tax procedures and settlement thresholds because we taught them as former IRS Agents.
Call us today and we can review your case for no charge and see if we can help you. 1-866-700-1040.
Let our team of Tax Attorneys, Tax Lawyers and Former IRS Agents can keep your money from the IRS.
Many times we have to file a Federal Tax Appeals to save you large dollars. We fight for every nickel, we hate to lose.
Your Appeal Rights
The IRS has an administrative appeals process that works formally with taxpayers to try to settle tax disputes in an effort to avoid formal court hearings.
The role of Appeals function at the IRS 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 function strives to resolve tax disputes in a fair way and remain impartial to both parties and most of the time they do.
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.
IRS 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.
Call us today to learn more.
FBAR TAX AUDIT – Fear not – Tax Attorneys, Lawyers, Former IRS – IRS Tax Audit Specialists
by Fresh Start Tax | Jun 19, 2012 | Back Taxes, Expatriate Tax, IRS Tax Audit, Offer in Compromise, Representation, Tax Lawyer, Tax Returns
If you are looking for true professional tax help, advice call Fresh Start Tax L.L.C. for a no cost tax consultation. 1-866-700-1040.
We are true tax experts.
We file all current tax return via e-file and we can file any multiple back, late, or unfiled years tax returns. Should you owe back taxes we can also work on a settlement with the IRS called an offer in compromise or a tax debt settlement.
We can help audit proof your tax return. We have Former IRS Agents and IRS Audit Managers review your tax returns and conduct a pre-audit review to ensure a safe and worry free return. We also take assertive positions to reduce your tax liability so you pay the lowest tax allowed by law.
We are staffed with Tax Attorneys, CPA’s and Former IRS agents, managers and instructors who have over 205 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service.
Expert Expatriate Tax Services, Tax Consultation and Tax Advise.
We will review all of your U.S. Tax Obligations while living abroad and make determinations of which events are and or not taxable.
We also will review all Earned Income exclusions to give you every tax benefit available to you.
We also go over all the tax treaties which range and cover over 60 countries. We review all social security, medicare and self employment tax issues.
U.S. Social Security, Medicare, and Self-Employment Taxes
.
If you are an offshore employee of a U.S. corporation, that employer will normally withhold Social Security and Medicare taxes on your W-2 earnings.
Should you be working for a United States based employer in one of the 20-plus countries with which the U.S. has established a Social Security Totalization Treaty, you may be able to cite a closer connection to the foreign country and participate in that country’s social insurance system, and not have U.S. Social Security and Medicare taxes withheld from your United States pay.
Call us today for a free tax consultation, 1-866-700-1040.
