by Fresh Start Tax | Dec 8, 2012 | IRS Tax Audit, New Jersey Tax, Sales Tax
IRS & Sales Tax Audits – Audit Experts – Attorneys, Lawyers, Former IRS – Essex, Morris, Bergen, Passaic, Union – New Jersey
Stop the worry. Get a no cost professional tax consult and learn how we can end your misery. 1-866-700-1040.
We have worked for the IRS and worked on joints tasks on Sales Tax Audits from both sides of the fence.
We know the procedures and techniques and can you get you results. We have over 60 years with the IRS as Agents, Managers, and Instructors.
We are affordable and friendly and get you results.
IRS Tax Audits.
There are several different types of IRS tax audits.
1. Mail correspondence.
The most common type of IRS tax audit is the mail correspondence audit. IRS audits about 1.5 million taxpayers through mail correspondence. These usually occur as a result of 1099 and w-2 mismatches. IRS collects billion of dollars through these tax audits.
2. DIF.
The high DIF score is the second most common way. The DIF score or the discriminatory index function score tax audit means your tax return fell out of the National Standards for various credits, expenses or something did not make sense on your tax return. Each tax return has a DIF score.
The computer will self generate these score and tax audits.
3. Random sample audit. You won the IRS lottery and IRS will use your tax audit results to set up future DIF scores. this is a bad news audit.
4. National Program Audit.
IRS runs market specialization programs in different areas in the country for different industries. IRS tries to audit all industries to set National Standards. There is list on our website for market specialization tax audits.
6. The Office Audit.
You will get a letter to appear in a local IRS office where a local office auditor will audit selected features of your IRS tax return. These are small and quick tax audits.Many times these are only two or three item audits.
7. The Field Audit.
A more high skilled IRS Revenue Agent will spend days combing through your records. These are more advanced and complicated tax audits conduct at your home, place of business of at your representatives office.
State of New Jersey Tax Audits
The State of New Jersey audits taxpayers to:
1. Enforce New Jersey tax laws uniformly,
2. Deter tax evasion,
3. Promote voluntary compliance,
4. Educate taxpayers.
While the State of New Jersey accept most tax returns as filed, they audit some returns to verify accuracy and evaluate compliance.
Sales Tax Audits do not always result in the taxpayer owing additional tax, penalty or interest. The sales tax examiner auditor may adjust a credit carryover or correct distribution without assessing additional tax.
The auditor sometimes may even determine that a refund is due.
How Are you Selected for Audit?
The methods for selecting a business or individual to audit vary from tax to tax.
Here are some examples of sources the State sometimes uses to identify a potential audit candidate:
1. Internal Revenue Service information.
2. Information sharing programs with other states and state agencies.
3. Computer-based random selection.
4. Analysis of Florida tax return information.
5. Business publications, periodicals, journals, and directories.
What types of records will you need to provide?
When the State notifies you of our intent to audit they will also tell you what records you will need to provide.
Some types of records may include, but are not limited to:
a. General ledgers and journals
b. Cash receipt and disbursement journals
c. Purchase and sales journals
d.Sales tax exemption or resale certificates
e. Florida tax returns
f. Federal tax returns
g. Depreciation schedules
h. Property records
i. Other documentation to verify amounts entered on tax returns
IRS & Sales Tax Audits – Audit Experts – Attorneys, Lawyers, Former IRS – Essex, Morris, Bergen, Passaic, Union – New Jersey
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 5, 2012 | California Tax, Representation, Sales Tax, Tax Help, Tax Relief, Tax Settlements
Tax Relief – Help Settle IRS Tax Problem – Local Tax Firm California
If you are going through IRS or State Tax Problems or Issues call Fresh Start Tax L.L.C. 1-866-700-1040.
We are a local tax firm that resolve your IRS or State Tax Issues or Tax Problems. We can help resolve your tax debt once and for all.
Stop the worry now! Get tax relief today.
Fresh Start Tax
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627
866-700-1040
We are comprised of Tax Attorneys, Tax Lawyers, CPA’s, Enrolled Agents and Former IRS Agents, Managers, Appeals Agents and Instructors.
With over 206 years of professional tax experience and 60 years of direct IRS work experience in the local, district and regional offices.
IRS has different options in dealing with those taxpayers that have tax debt.
How we can get your tax relief to Settle and Negotiate your case with the Internal Revenue Service or the State of California:
1. Fresh Start Tax LLC will immediately send a power of attorney to the IRS or State of California letting them know we are now your tax representative.
You will never have to speak to the IRS or the State. We handle all tax correspondence. You can stop the sorry today.
2. Fresh Start Tax LLC will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case. This is leverage that they use to get you compliant with tax laws.They can opt to file tax levies and tax liens.
We will pull your tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records. We have reconstructed thousands of back tax returns to get taxpayers the tax relief they need.
3. The IRS will requires a current financial statement. We will secure a required 433-A (IRS financial statement) or a 433F that will verify the income and expenses and work out a settlement agreement.
The IRS will require a closing settlement method for each case. This will take the case off of the CADE 2 enforcement computer.
4. Fresh Start Tax LLC will review with our clients how they want to settle their case.
We get our clients tax relief with a agreement based on their current financial needs.
IRS Tax Settlement Agreements can be in different forms:
a. Hardship Settlements.
Tax cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship. This is also called an Economic Hardship. They are millions of cases right now in Hardship Status.
b. Payment Agreements.
Open IRS Collection Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required. We can get your life back to normal.
c. IRS Offer in Compromise. There are three types of OICs:
The IRS may accept an Offer in Compromise based on three grounds:
1. Doubt as to Collectibility.
Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability.
A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:(1) the examiner made a mistake interpreting the law,(2) the examiner failed to consider the taxpayer’s evidence or(3) the taxpayer has new evidence.
3. Effective Tax Administration or Exceptional Circumstances.
There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
Call us today and get experienced, honest and affordable IRS Tax Relief from the IRS or the State. 1-866-700-1040.
by Fresh Start Tax | Nov 4, 2012 | Florida Sales Tax, Representation, Sales Tax
Department of Revenue Sales Tax Audits – Local Sales Tax Experts – Florida
We are staffed with Board Certified Tax Attorneys, Sales Tax Lawyers, CPA’s and Former Agents that can take away your worry today.
Being Former Agents we know all the policies and procedures. Use of years of experience to work for you.
Call us for a no cost consult and here the truth from a reputable and affordable tax firm. Practicing IRS and State Tax Representation since 1982 in the State of Florida. 1-866-700-1040.
With the Department of Revenue being short of funds, the only way to fund the State of Florida needs if to collect back taxes with that said the number of Sales Tax Audits for the State of Florida will be on the rise for years to come.
We have handled thousands of taxpayer cases since 1982. We are Sales Tax Experts and can handle any tax issues you may have.
Should you owe money to the State of Florida Department of Revenue we can also work out a tax settlement and your back taxes.
Why the State Of Florida Audits Tax Returns
a. To enforce Florida tax laws uniformly to all taxpayers,
b. To deter tax evasion,
c. To promote voluntary compliance for all taxpayers,
d. To educate taxpayers and enforce the tax laws.
Most Tax Returns are accepted as Filed
While they accept most State of Florida tax returns as filed, the State audits some returns to verify accuracy and evaluate compliance. The State has mandatory audit requirements.
Tax audits many times do not always result in the taxpayer owing additional tax, penalty or interest. The tax auditor may adjust a credit carryover or correct distribution without assessing additional tax. The Sales Tax Auditor may even determine that a refund is due.
How and Why Are Taxpayers /Businesses are Selected for Sales Tax Audit?
The methods for selecting a business or individual to audit vary from tax to tax.
Here are some examples of sources the State of Florida may use to identify a potential audit candidate:
1.Internal Revenue Service information.The Federal Government can share results of there tax audits.
2 .Information sharing programs with other states and state agencies. On large cases this is the norm.
3. Computer-based random selection. YES, YOU CAN WIN THE AUDIT LOTTERY.
4. Analysis of Florida tax return information.
5. Business publications, periodicals, journals, and directories.
What Types of Records Will I Need to Provide?
When the State notifies you of our intent to audit, they will also tell you what records you will need to provide. The types of records may include, but are not limited to:
a. General ledgers and journals,
b. Cash receipt and disbursement journals,
c. Purchase and sales journals,
d. Sales tax exemption or resale certificates,
e. All related Florida tax returns,
f. Federal tax returns and documentation,
g. Depreciation schedules and such,
h. Property records,
i. Other documentation to verify amounts entered on all tax returns. The State can ask for anything related to your tax return.
Three year record keeping rule.
You must keep your records for three years since an audit can extend back that far.
The Department of Revenue may audit for periods longer than three years if you did not file, or filed a substantially incorrect return or payment.
What Are Your Rights During an Audit?
The Florida Taxpayer’s Bill of Rights provides protection for taxpayers’ privacy and assets during their interactions with Revenue employees.
Your tax rights include:
a. The right to fair treatment from the auditor and the State,
b. The right to get available information and prompt, accurate responses to your questions,
c. The right to have the Department begin and complete its audit in a timely manner after we notify you of our intent to audit,
d. The right to get simple, non-technical statements which explain the reason for audit selection and the procedures, remedies, and rights available during audit, appeals, and collection proceedings. You always have the right to speak to managers and supervisors upon request.
Call us today for a free tax consult and get solid, honest and trustworthy tax advice and treatment. 1-866-700-1040
by Fresh Start Tax | Oct 30, 2012 | IRS Representation, IRS Tax Audit, IRS Tax Problem, Representation, Sales Tax, Tax Help
IRS Tax Audit – IRS Representation Help – IRS & State Tax Representation
Have Former IRS Agents and Managers Represent you for an IRS Tax Audit
Hire True Tax Professional, stop the worry! We can save you money and completely resolve your IRS issue.
We were Former IRS Audit Agents/Managers and know the procedures and policies. We can prevent IRS to wreck havoc in your life. 1-866-700-1040.
Do not be fooled by other companies. Call us and speak directly to Former IRS Agents, Managers and Instructors who have over 60 years working directly for the IRS.
The odds of you getting audited by the IRS are about 1%.
IRS Audits 1.4 million tax returns each year. Rate of corporate returns being audited are far greater sometimes up to 10%.
The more money you make the greater likelihood your tax return will be audited.
If you need professional tax help to represent you on a individual or business tax audit call us today for the finest available Federal or State tax representation.
We are the true IRS and State tax experts. We are comprised of Board Certified Tax Attorneys, CPA’s, Former IRS Agents & Managers and Enrolled Agents.
You can met with us directly, contact us by telephone of Skype.
Fresh Start Tax – Joe Dimino
1901 Newport Boulevard
Suite 350
Costa Mesa, CA 92627
866-700-1040
IRS Tax or State Sales Tax Audits
Both government agencies can audit your tax return for a variety of reasons. As a general rule, the computer has selected your tax return for a tax audit.
The DIF Score, the main reason for tax audits.
Each tax return is issued a DIF Score (Discriminatory Index Function). According to the IRS and Former IRS agents who worked in the tax audit section, a DIF Score “is a mathematical technique used to score income tax returns for examination potential.
This technique establishes the National Average Guidelines.
If if your DIF score for your tax return is above the national average, then the risk of an audit escalates. The highest scoring tax returns are then forwarded to an IRS Examiner/ Agent for further review. All returns are manually screened.
So what triggers a high DIF Score?
Falling out of the National Average Guidelines in the areas of Charitable Contributions, Casualty Losses, Home Office, and Travel & Entertainment, excessive deductions and taking to many unauthorized tax credits will affect the tax return’s DIF Score.
How DIF Actually Works
To arrive at the DIF score for each tax return, the IRS computer identifies returns by assigning weights, algorithms and certain basic tax return characteristics.
These weights are added together to obtain a systemic composite score for all tax returns. That score is used to rank all returns into numerical sequence.
The highest scores are then manually reviewed by IRS Agents at the Service Centers to determine the merit and worthiness of a Tax Audit.
One Caution
You want to avoid IRS picking up multiple years during your tax audit. There are ways to prevent this action.
Call us for more details. 1-866-700-1040.
by Fresh Start Tax | Sep 17, 2012 | Back Taxes, IRS Tax Problem, Sales Tax
As former IRS agents we use to prepare hundreds of back tax returns for businesses and individuals who did not file back tax returns.
We are familiar with the process and we know how to exactly stop the IRS today.
We can take away your fear or worry you may have. We are “A” rated and friendly as well as affordable.
IRS has the right under 6020B of the IRC to file your back payroll tax returns for businesses who have failed to file payroll tax returns.
You can stop and IRS by calling our Fresh Start Tax offices today. 1-866-700-1040
This Non-Filer Program has been around for years and the IRS is actually beefing up enforcement on back payroll tax returns.
IRS will send out notices to businesses who have not filed back payroll tax returns and give you opportunity to file accurate and correct tax returns.
If you fail to comply the Ogden Utah Campus of the IRS will file you back tax returns for the business. IRS will use the highest tax figures possible to make your tax assessment as high as possible.
The back tax returns that are usually prepared under the provisions of IRC 6020(b):
1. Form 720 Quarterly Federal Excise Tax Return
2. Form 940 Employer’s Annual Federal Unemployment Tax Return
3. Form 941 Employer’s Quarterly Federal Tax Return
4. Form 943 Employer’s Annual Return for Agricultural Employees
5. Form 1065 U.S. Partnership Return of Income
6. Form 2290 Federal Use Tax Return on Highway Motor Vehicles
7. Form 944 Employer’s Annual Federal Tax Return
IRS also has the ability to file your individual tax return under this same tax provision.
The Substitute For Return (SFR) Program and its automated version, Automated Substitute For Return (ASFR) were developed to contact taxpayers who have not filed tax returns voluntarily and for whom income information is available to substantiate a significant income tax liability.
Internal Revenue Code Section (IRC) 6212 authorizes the Service to send a notice of deficiency when a taxpayer appears to have a filing requirement but does not comply by voluntarily filing a tax return.
How to stop the problem.
Fresh Start Tax LLC will secure a power of attorney and contact the IRS. We will immediately refile correct tax returns and settle your tax liability with the IRS.
It is critical all tax returns are filed and up to date. Also critical that you are making current tax deposits. IRS will not work with you unless your are currently making payroll tax deposits. IRS will ask for and require for an up to date verification of the monthly payroll tax deposits.
If you owe back taxes IRS will require a form 433A and a Form 433B and evaluate your case. Once IRS has reviewed your financial statement they will workout a tax settlement and a recommendation on your case to settle and close the matter.
Call us today and find the out more about this process. 1-866-700-1040.
SPEAK DIRECTLY TO A FORMER AND FRIENDLY IRS AGENT.
