by Fresh Start Tax | Nov 29, 2012 | IRS Tax Audit, New Jersey Tax, Sales Tax, Tax Audit, Tax Lawyer
IRS Tax Audit – Sales Tax Audit – Former Agents
We are a professional tax firm specializing in IRS and New Jersey Tax Audits;
On staff are Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents.
Fresh Start Tax LLC – New Jersey
209 Cooper Ave,
Upper Montclair, NJ 07043
1-866-700-1040
We have 60 years of direct IRS work experience and have worked in conjunction with the State in various forms of Sales Tax Audits.
You may call us for a no cost professional tax consult so you can learn about the scope and direction of a IRS Tax Audit or a Sales Tax Audit.
All work is done in house by certified tax professionals.
There are different type of tax audits. The most common type of tax audits:
1. A mail correspondence tax audit. Over 1.4 million tax returns are audited this way. the IRS simply sends a notice advising you there was a math or computation error on your tax return.
2. The DIF tax audit. Your tax return fell out of the national standard for income and expense ratios. Each return has a DIF number attached and is classified information.
3. Specialty program. IRS runs special programs on industries and businesses. Many times this can relate to the area abuses.
4. Whistle blower. Someone rats you out.
5. National Research Projects
Importance of National Research Projects Results. ( in depth look )
Because NRP results are used to develop or update formulas for scoring returns as to their probability for additional tax or additional income, it is essential that examinations be thorough. Examiners should remain mindful of causing undue burden for the taxpayer.
Scope of Examination .
Every classified item must be examined. An inquiry or an inspection of records and documents must be made for all classified line items.
Expansion of Audit Scope.
If the examination reveals changes to any of the classified items, the examiner usually considers expanding the examination to include other items, if any, on the return or supporting schedules. These audits become more in depth.
NRP selection is not a basis for expanding the scope of an examination, if the examination was in process prior to the return being designated by NRP.
For any return closed prior to its designation as an NRP return, an NRP report will be completed based on the results of such examination if the NRP Office determines the results are valid for study purposes.
These NRP tax audits are used to set the National Standards for DIF scores.
Related Entity Examinations.
If a related entity is classified, the tax examiner usually follows the required filing checks procedures. If the related entity is not examined, the examiner will document why it was not examined and no-change the issue on RGS. If the related entity is deemed worthy of examination, the examiner needs to timely request controls on the related return and open an examination on that entity.
If the related entity is outside the group control, the examiner will follow the procedures outlined in the IRM for collateral examinations.
Depth of a NRP Tax Examination.
Tax Examiners must use their professional judgment concerning the depth of examination required for any particular item on the tax return bearing in mind the research nature of the examination.
Tax Examiners should use professional judgment regarding the depth of examination of an issue. The depth of the examination of a NRP examination is the same as is used in field audits.
NRP taxpayers must not be held to a higher standard or more in-depth audit procedures.
Issues should be perused to the depth necessary to reach a support able conclusion. Oral testimony may be accepted in appropriate situations.
Call us today for a no cost professional tax consult 1-866-700-1040.
IRS Tax Audit – Sales Tax Audit – Former Agents – Upper Montclair, Cedar Grove, West Orange, Ridgewood, Mendham, Franklin Lakes, Newark, Bernardsville – New Jersey
by Fresh Start Tax | Nov 28, 2012 | IRS Tax Audit, Representation
IRS Tax Audit Help & Representation – Former IRS Agents – Florida Keys, Miami, Ft. Lauderdale, Boca, Palm Beaches – IRS Tax Audit Experts 954-492-0088
Stop the worry! We have successfully defended thousands of clients before the IRS. Call us for a no sort consult and speak to true tax professionals.
We are comprised of Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents, managers and instructors.
We have a combined 60 years of direct IRS experience in the local South Florida Offices.
Also on staff a Former IRS Appeal Agent.
If you have received a IRS Tax audit letter or need a opinion call us today for a no cost tax consult.
As Former IRS Agents and Managers we needed to follow guidelines and audit techniques for all IRS tax audits. Listed below are the methods and techniques that can or may be used on a IRS tax audit.
IRS Audit Methods and techniques.
Methods for accumulating evidence include:
Analytical Tests.
Such as analysis of Balance Sheet items to identify large, unusual, or questionable accounts.
Analytical tests use comparisons and relationships to isolate accounts and transactions that should be further examined or determine that further inquiry is not needed.
Documentation.
such as examining the taxpayer’s books and records to determine the content, accuracy, and substantiate items claimed on the tax return.
Inquiry.
such as interviewing the taxpayer or third parties. Information from independent third parties can confirm or verify the accuracy of information presented by the taxpayer.
Inspection.
such as physically examining the taxpayer’s assets, e.g., inventory or securities.
Observation.
IRS can or will conduct a tour of the taxpayer’s business to observe the taxpayer’s daily business operations.
Testing.
IRS can or will trace transactions to determine if they are correctly recorded and summarized in the taxpayer’s books and records.
Factors IRS will use to consider when choosing an examination technique are:
1.Will the examination technique provide the needed evidence?
2.Will the benefits derived from using a particular technique justify the associated costs to both the examiner and the taxpayer?
3. Are there less expensive alternatives that will provide the same evidence?
The following Examination techniques used to gather IRS tax evidence .
a. Conduct face to face interviews with the taxpayer and or the representative,
b. Make tours of Business Sites and Inspection of Residences,
c. Evaluation of the taxpayer’s internal control systems,
d. Examining the taxpayer’s books and tax records,
e. Analyzing Schedules M–1 and M–2,
f. Bank Record reconciliations,
g.Analysis balance sheets,
h. Testing of gross receipts or sales,
i. Testing of expenses: Cost of goods sold,
j. Testing Expenses: operating expenses.
For Business Tax Returns
IRS uses minimum income probes for individual business tax returns. They are a follows:
1. Financial Status Analysis.
Prepare a financial status analysis to estimate whether reported income is sufficient to support the taxpayer’s financial activities.
2. IRS Interview.
Conduct an interview with the taxpayer (or representative) to gain an understanding of the taxpayer’s financial history, identify sources of nontaxable funds, and establish the amount of currency the taxpayer has on hand.
IRS will consider possible bartering income as part of the minimum income probes.
3. IRS will usually take a tour of business .
Tour the business site and review of the Internet website to gain familiarity with the taxpayer’s operations and internal controls, and identify potential sources of unreported income.
However, a tour of the physical business site is not required for office audit cases but may be conducted if appropriate and with manager approval.
4. Internal Control.
IRS can and will evaluate internal controls to determine the reliability of the books and records (including electronic books and records), identify high risk issues, and determine the depth of the examination of income.
5.IRS will conduct a reconciliation of income.
Reconcile the income reported on the tax return to the taxpayer’s books and records.
An analysis of the IRP information in the file should also be completed to ensure all business and/or investment activities reflected on the IRP document are properly accounted for on the tax return.
6. IRS will do a Testing Gross Receipts.
Test the gross receipts by tying the original source documents to the books.
7. Bank Analysis – Prepare an analysis of the taxpayer’s personal and business bank and financial accounts (including investment accounts) to evaluate the accuracy of gross receipts reported on the tax return.
8. Business Ratios.
Prepare an analysis of business ratios to evaluate the reasonableness of the taxpayer’s business operations and identify issues needing a more thorough examination.
9. E-Commerce and/or Internet Use – Determine if there is Internet use and e-comm.
IRS Tax Audit Help & Representation – Former IRS Agents, Tax Attorneys – Florida Keys, Miami, Ft. Lauderdale, Boca, Palm Beaches – IRS Tax Audit Experts
by Fresh Start Tax | Nov 22, 2012 | IRS Tax Audit
IRS Audit Notice, Former IRS Agents – Stop the Worry
Former IRS Agents, Managers and Instructor can get you results.
Over 60 years of direct IRS tax experience.
If you have received a IRS tax audit there is no need to panic or have worry set in in.
We have successfully handled thousands of IRS cases. As Former IRS agents we know the exact IRS process and settlement techniques that can help you get through a IRS Tax Audit worry free.
We offer a free tax consult so you can get an idea of the IRS Tax Audit process. 1-866-700-1040.
What is an IRS audit?
An IRS audit is a review or a 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.Many tax audits results in no- changes. We can stop the worry of fear.
IRS Tax Audit Selection Process.
Selecting a tax return for audit does not always suggest that an error has been made. Tax Returns are selected using a variety of methods, including:
a .Random selection and computer screening – sometimes returns are selected based solely on a statistical formula.
b. Document matching – when payor records, such as Forms W-2 or Form 1099, don’t match the information reported.
c. 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.
d. The DIF Process. IRS scores each and every tax return for a possible audit selection based on the income and expenses placed on each return. As your tax return goes through the CADE 2 computer your tax return is ranked along with all other tax returns. A DIF score is placed on your return. It is placed by a label permanently affixed to your return.
IRS Tax Audit Methods
An IRS tax audit may be conducted by mail or through an in-person interview and review of the taxpayer’s records.
The interview by a agent may be at an IRS office or at the taxpayer’s home, place of business, or accountant’s office .
The IRS will tell you what records are needed.
Many times tax audits can result in no changes or changes. Any proposed changes to your return will be explained.
IRS Tax Audit Notifications and Tax Notices
Should your account be selected for audit, you will be notified in two ways:
1. By mail or
2. By an Agent calling you up by telephone
In the case of a telephone contact, the IRS will ALWAYS send a letter confirming the audit. E-mail notification is not used by the IRS.
Your Rights During an IRS Tax Audit.
Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund processes.
These rights include:
1. A right to professional and courteous treatment by IRS employees.
2. A right to privacy and confidentiality about tax matters.
3. A right to know why the IRS is asking for information, how the IRS will use it and what 4. will happen if the requested information is not provided.
5. A right to representation, by oneself or an authorized representative.
6. A right to appeal disagreements, both within the IRS and before the courts.
IRS Tax Audit Length
The length of each audit varies depending on the type of audit, the complexity of items being reviewed, the availability of information being requested, the availability of both parties for scheduling of meetings and your agreement or disagreement with the findings.
Records Needed for a Tax Audit
You will be provided with a written request for specific documents needed.
The law requires you to retain records used to prepare your return.
Those records generally should be kept for three years from the date the tax return was filed.
Electronic Records
The IRS does accept some electronic records. If records are kept electronically, the IRS may request those in lieu of or in addition to other types of records.
You can contact your auditor to determine what can be accepted to ensure a software program is compatible with the IRS’s.
Audit Determinations
An audit can be concluded in three ways:
1. No change: Hurray ! 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 AGREE With The Audit Findings?
If you agree with the audit findings, you will be asked to sign the examination report or a similar form depending upon the type of audit conducted.
Call us today to be worry free through a IRS tax audit 1-866-700-1040.
by Fresh Start Tax | Nov 20, 2012 | IRS Tax Audit, IRS Tax Experts, IRS Tax Problem
Audited by the IRS – Hire Former IRS Agents & Managers – Fresh Start Tax L.L.C.
You can hire Former IRS agents and managers to get you the very best audit results possible. 1-866-700-1040.
We have represented thousands of individuals and businesses before the IRS.
We are not only former IRS Agents and Managers we also were former instructor that taught new IRS Agents.
We taught Tax Law at the IRS.
You can call us for a no cost professional tax consultation and hear the truth about your case.
IRS Tax Audits
IRS Examination Methods
An IRS tax audit examination may be conducted by mail or through an in-person interview and review of the taxpayer’s records.
The IRS interview may be at an IRS office or at the taxpayer’s home, place of business, or accountant’s office (field audit).
Audio Recordings, yes they are permitted.
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 IRS 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. Fresh Start Tax LLC has represented thousands of taxpayers before the IRS. Find out how we can help you.
Your Appeal Rights with the Internal Revenue Service.
Your appeal rights are explained by the examiner at the beginning of each audit. Taxpayers or Business Owners who do not agree with the proposed changes may appeal by having a supervisory conference with the examiner’s manager or appeal their case administratively within the IRS, to the U.S. Tax Court, U.S. Claims Court or the local U.S. District Court.
If there is no agreement at the closing conference with the examiner or the examiner’s manager, the taxpayer has 30 days to consider the proposed adjustments and their next course of action.
If the taxpayer does not respond within 30 days, the IRS issues a statutory notice of deficiency, which gives the taxpayer 90 days to file a petition to the Tax Court.
The Claims Court and District Court generally do not hear tax cases until after the tax is paid and administrative refund claims have been denied by the IRS.
The tax does not have to be paid to appeal within the IRS or to the Tax Court.
A case may be further appealed to the U.S. Court of Appeals or to the Supreme Court, if those courts accept the case.
Audit Selection Process
Selecting a return for audit does not always suggest that an error has been made. Returns are selected using a variety of methods, including:
1. Random selection and computer screening. Many sometimes returns are selected based solely on a statistical formula.
2. Document matching. When payor records, such as Forms W-2 or Form 1099, don’t match the information reported.
3. Related examinations.Tax 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.
Call us today and stop the worry. 1-866-700-1040
Audited by the IRS – Hire Former IRS Agents & Managers – Miami, Ft.Lauderdale, Palm Beaches, Boca, Florida Keys – Florida
by Fresh Start Tax | Nov 13, 2012 | IRS Tax Audit, Tax Help
IRS & State Sales Tax Audits Help – Former IRS, Attorneys
We are a local tax firm. We can stop the worry today. Use our experience for your benefit.
We have over 206 years of professional tax experience.
If you are having a IRS or State of California Sales Tax audit call us today for a no cost professional tax consult and speak directly to a Tax Attorney, Tax Lawyer, CPA, Enrolled Agent, or Former IRS Agent.
We have been representing taxpayers since 1982 and Fresh Start Tax LLC has a A plus rating with the Better Business Bureau.
We handle all types of audits, We have represented thousands of clients since 1982.
Do not get ripped of by non professionals. Hire real tax professionals.
How the process works:
The Examination (Audit) Process
The IRS examines (audits) tax returns to verify that the tax reported is correct.
Selecting a return for a IRS or Sales Tax Examination does not always suggest that the taxpayer has either made an error or been dishonest.
In fact, in some rare cases some tax examinations result in a refund to the taxpayer or acceptance of the return without change. These are called NC or no changed
The majority of taxpayers files returns and make payments timely and accurately. Taxpayers have a right to expect fair and efficient tax administration from the IRS, including verification that taxes are correctly reported and paid with enforcement actions against those who fail to comply voluntarily.
Taxpayer Rights to all Tax Audits both Federal And State
The IRS and the State of California trains its employees, representatives and auditors to explain and protect taxpayers’ rights throughout their contacts with taxpayers.
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, the State and before the courts.
How IRS and State of California Sales Tax Returns Are Selected for a Tax Examination
They are selected using a variety of methods:
-
Computer Scoring — 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 (UIDIF) 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.
-
Information Matching — 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.
-
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.
Call us today for a no cost professional tax consult and hear the truth from a A plus rated tax firm. 1-866-700-1040.
by Fresh Start Tax | Nov 9, 2012 | IRS Representation, IRS Tax Audit, IRS Tax Problem, Tax Help, Tax Relief
IRS TAX RELIEF – IRS TAX HELP
Stop your worry today. Have Former IRS who taught Tax Law at the IRS that know all the settlement and tax polices get you much needed tax relief.
We handle all IRS Collection matters, IRS tax audit, State Tax Problems and Appeals Issues. On staff, Board Certified Tax Attorney and CPA’s as well as Former IRS Agents, Managers and Instructors with over 60 years with the IRS.
We taught Tax Law at the IRS.
We can get you immediate tax relief. We have given IRS tax help to over 15,000 clients since 1982.
If you are having any IRS tax issue or tax problems that immediate and permanent tax help relief call us today and end your worries.
We are a local tax firm. We are A plus rated by the Better Business Bureau.
Fresh Start Tax LLC – New Jersey
209 Cooper Ave,
Upper Montclair, NJ 07043
1-866-700-1040
Fresh Start Tax L.L.C. is one of the premier tax resolution firms in the New Jersey area.
Our firm deals with all types of civil cases including individuals, businesses, non-profits, partnerships and corporations.
We have staff that specialize in every facet of IRS Tax Representation and State Tax Representation.
We know all the IRS tax strategies because of our extensive IRS working backgrounds.
We were Former IRS Certified Tax Instructors that taught IRS Tax Law in the IRS Regional Training Center. Some of our many specialties include the following:
Areas of Professional Tax Practice:
- Same Day IRS Tax Representation
- Offers in Compromise or IRS Tax Debt Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS Tax Audits
- IRS Hardships Cases , Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases and Tax Audits
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction if Tax Records are lost or destroyed
- FBAR Experts
- Expatriate Tax Experts
Private Practice Since 1982
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A”PLUS
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE 90.3 FM Monthly Radio Show-Business Weekly
Do not be bullied by the IRS. Fight back with former IRS Agents, Managers and Instructors. Free tax consults 1-866-700-1040.
