IRS Help Tax Attorney, Lawyer + Owe Debt, Filing, Settlement, Audit, Representation +Hallandale, Pembroke Park, Hollywood, Dania, Oakland Park, Ft.Lauderdale + Broward County

by Fresh Start Tax | May 16, 2019 | Tax Help

Tax Attorney’s Lawyers + IRS Tax Problems, Debt, Tax Returns, Settlements, Audit + Experienced Affordable + Hallandale, Pembroke Park, Hollywood, Dania, Oakland Park, Ft.Lauderdale

by Fresh Start Tax | May 16, 2019 | Tax Help

We are the Affordable, Experienced professional tax firm, since 1982. A plus rated. We know IRS inside and out !!!

We have over 100 years of direct IRS work experience in the local, district, and regional tax offices of the Internal Revenue Service. We have worked as IRS managers, IRS supervisors, and IRS teaching instructors.

We know every aspect of the Internal Revenue Service and have a tax attorney and a tax lawyer on hand for cases that involve tax court.

IRS tax problems come in all sorts of ways.

From not filing, owing back tax debt, IRS tax audits, business tax problems, appeals and ANY other tax issue problem.

If you have not filed your tax return our team of former IRS agents and CPA’s can prepare all your back tax returns will reconstruct them if you have no records. We can work out a tax settlement at the same time.

Owing back tax debt

If you owe back tax debt we can let you know exactly how IRS is going to work your case. Once we take a current financial statement we can inform you how the IRS will generally close your case, usually one of three ways. They can put your case into a currently not collectible, ask for a payment agreement or we may advise you that you can set your tax debt for pennies on the dollar.

* see more below on back taxed owed below.

IRS Tax Audit

If IRS sends you nasty gram advising that they will audit your tax return, we can go ahead and have our former IRS agents, managers and teaching instructors give you the best possible IRS audit tax defense. A tax attorney can represent you if we need to go to tax court.

Appeals

Appeals also is our specialty and our former IRS agents and tax attorney regularly go to appeals if results are not as expected.

Back Business Tax Debt & Tax Returns & Tax Filings

Any time you owe back business tax debt the IRS will conduct a full compliance check. A full compliance check means that IRS will pull your working individual history and your business history to see what taxes are owed and what tax returns remain Unfiled.

The Internal Revenue Service will work both cases at the same time.

Back Payroll taxes are a concern for Internal Revenue Service because these taxes are actually trust fund taxes, that is, a company holds these taxes for the benefit of the employees.

When these taxes are not paid, a red flag is raised and IRS makes every possible effort to collect e payroll taxes and go after the responsible individuals whose job it was to collect and turn over back taxes.

IRS we use every avenue of enforced collections to do so. I should know, I am a former revenue officer who used to work cases and I know the very best tax defense.

We can go ahead and file all your Unfiled payroll tax returns and settle your debt all at the same time.

It is critical that you understand that you do not want IRS the filing your tax delinquent tax returns for you. 6020b will become a problem!

Under 6020 B of the Internal Revenue Code, the IRS has the right to prepare your back payroll tax returns if you do not voluntarily file them. this will be nothing but trouble for you.

IRS can set up a personal assessment against you and collect the tax as though you owe individual income taxes. Yes you can be held personally responsible for the back payroll taxes. You can be subject to tax levies and tax liens.

Personal Responsibility for Payroll Taxes, BEWARE.

If the IRS has found you a responsible person for the trust fund penalty, call us today for free initial tax consultation and we will walk you through the process of resolving this tax at once and for all.

As former IRS agents we set up trust fund penalties against responsible persons for corporate or businesses that owed back payroll taxes.

If a company can no longer pay their back payroll taxes, the Internal Revenue Service has the right under 6672 to set up the trust fund debt against those who are held responsible. This is called the trust fund penalty.

Who Can Be Responsible for the Trust Fund Taxes, code section 6672. Can it Be You?

IRS will take a look at anybody that had any control of the business.

Such as:

An officer or an employee of a corporation;
A member or employee of a partnership;
A corporate director or shareholder or member;
A member of a board of trustees of a nonprofit organization, or anyone deemed to be responsible;
Other persons with authority and who had control over funds to direct their disbursement;
Those who consultation and with full knowledge chose not to pay the payroll tax liability.

You’ll know if you are one of e persons because you will receive IRS form 2751 & 1153 indicating a proposed notice of assessment against you.

There are various examinations available.

As soon as we review your case we can instantly tell you ways to help resolve your problem.

Options for Back IRS Tax Debt

Being former IRS agents and managers we know every possible solution to remedy this tax debt. We can resolve and possibly reduce your tax obligation.

How the Internal Revenue Service will work your case if you owe back payroll IRS tax debt.

IRS will require a 433A or 433F, an individual financial statement.

Many times the IRS uses 433F, depending were the cases in the system. Cases worked in the ACS system uses shorter version of the financial statement.

If the case is worked in the local office the revenue officer will use form 433.A

That financial statement will need to be fully documented along with bank statements, copies of checks and monthly expenses.

We will walk you through the process of how the IRS will work your case in the collection action that can possibly taken.

Will also review with you the IRS national standards program on all cases for those who owe back taxes.

Once IRS reviews your current financial statement they will make a determination and generally put you in one of two categories with the option of filing an offer in compromise.

IRS will generally close your case by:

1.IRS determines on 40% of the cases that taxpayers are put into hardship which means they can’t pay the tax at this time. Sometimes it is called currently not collectible. Cases that are an issue at currently not collectible or hardship stay in there for a period of 2 to 3 years and come back out to the field at a later time.

2. 6.5 million people enter monthly payment plans and pay a certain amount based on their current documented financial statement.

Other taxpayers file an offer in compromise to settle their case for pennies on the dollar. The offer in compromise requires a lot of skill and expertise to have accepted by the Internal Revenue Service.

Call us today for free initial tax consultation. Hear the truth!

We are a full-service firm with a specialty in expertise in all IRS matters.

We have over 200 years professional tax experience and can fully resolve any IRS problem especially if you owe business tax debt and wish to settle with the Internal Revenue Service.

We can prepare all back tax filings and resolve your individual, business, or corporate tax problem.

Tax Attorney’s Lawyers + IRS Tax Problems, Debt, Tax Returns, Settlements, Audit + Experienced Affordable + Hallandale, Pembroke Park, Hollywood, Dania, Oakland Park, Ft.Lauderdale

Tax Attorney’s Ft.Lauderdale + Help With IRS Tax Problems + Experienced Affordable, Since 1982

by Fresh Start Tax | May 16, 2019 | Tax Help

We are the Affordable, Experienced professional tax firm, since 1982. A plus rated. We know IRS!!!

We have over 100 years of direct IRS work experience in the local, district, and regional tax offices of the Internal Revenue Service. We have worked as IRS managers, IRS supervisors, and IRS teaching instructors.

Tax Attorney Help With  IRS Tax Problems

IRS tax problems come in all sorts of ways.

From not filing, owing back tax debt, IRS tax audits, business tax problems, appeals and ANY other tax issue problem.

If you have not filed your tax return our team of former IRS agents and CPA’s can prepare all your back tax returns will reconstruct them if you have no records. We can work out a tax settlement at the same time.

Owing back tax debt

If you owe back tax debt we can let you know exactly how IRS is going to work your case. Once we take a current financial statement we can inform you how the IRS will generally close your case, usually one of three ways. They can put your case into a currently not collectible, ask for a payment agreement or we may advise you that you can set your tax debt for pennies on the dollar.

* see more below on back taxed owed below.

IRS Tax Audit

If IRS sends you nasty gram advising that they will  audit your tax return, we can go ahead and have our former IRS agents, managers and teaching instructors give you the best possible IRS audit tax defense. A tax attorney cabn represent you if we need to go to tax court.

Appeals

Appeals also is our specialty and our former IRS agents and tax attorney regularly go to appeals if results are not as expected.

Back Business Tax Debt & Tax Returns & Tax Filings

Any time you owe back business tax debt the IRS will conduct a full compliance check. A full compliance check means that IRS will pull your working individual history and your business history to see what taxes are owed and what tax returns remain Unfiled.

The Internal Revenue Service will work both cases at the same time.

Back Payroll taxes are a concern for Internal Revenue Service because e taxes are actually trust fund taxes, that is, a company holds e taxes for the benefit of the government.

When e taxes are not paid a red flag is raised and IRS makes every possible effort to collect e payroll taxes and go after the responsible individuals whose job it was to collect and turn over  back taxes.

IRS we use every avenue of enforced collections to do so. I should know, I am a former revenue officer who used to work cases and I know the very best tax defense.

We can go ahead and file all your Unfiled payroll tax returns and settle your debt all at the same time.

It is critical that you understand that you do not want IRS the filing your tax delinquent tax returns for you. 6020b will become a problem!

Under 6020 B of the Internal Revenue Code, the IRS has the right to prepare your back payroll tax returns if you do not voluntarily file them. this will be nothing but trouble for you.

IRS can set up a personal assessment against you and collect the tax as though you owe individual income taxes. Yes you can be held personally responsible for the back payroll taxes. You can be subject to tax levies and tax liens.

Personal Responsibility for Payroll Taxes, BEWARE.

If the IRS has found you a responsible person for the trust fund penalty, call us today for free initial tax consultation and we will walk you through the process of resolving this tax at once and for all.

As former IRS agents we set up trust fund penalties against responsible persons for corporate or businesses that owed back payroll taxes.

If a company can no longer pay their back payroll taxes, the Internal Revenue Service has the right under 6672 to set up the trust fund debt against those who are held responsible. This is called the trust fund penalty.

Who Can Be Responsible for the Trust Fund Taxes, code section 6672. Can it Be You?

IRS will take a look at anybody that had any control of the business.

Such as:

An officer or an employee of a corporation;
A member or employee of a partnership;
A corporate director or shareholder or member;
A member of a board of trustees of a nonprofit organization, or anyone deemed to be responsible;
Other persons with authority and who had control over funds to direct their disbursement;
Those who consultation and with full knowledge chose not to pay the payroll tax liability.

You’ll know if you are one of e persons because you will receive IRS form 2751 & 1153 indicating a proposed notice of assessment against you.

There are various examinations available.

As soon as we review your case we can instantly tell you ways to help resolve your problem.

Options for Back IRS Tax Debt

Being former IRS agents and managers we know every possible solution to remedy this tax debt. We can resolve and possibly reduce your tax obligation.

How the Internal Revenue Service will work your case if you owe back payroll IRS tax debt.

IRS will require a 433A or 433F, an individual financial statement.

Many times the IRS uses 433F, depending were the cases in the system. Cases worked in the ACS system uses shorter version of the financial statement.

If the case is worked in the local office the revenue officer will use form 433.A

That financial statement will need to be fully documented along with bank statements, copies of checks and monthly expenses.

We will walk you through the process of how the IRS will work your case in the collection action that can possibly taken.

Will also review with you the IRS national standards program on all cases for those who owe back taxes.

Once IRS reviews your current financial statement they will make a determination and generally put you in one of two categories with the option of filing an offer in compromise.

IRS will generally close your case by:

1.IRS determines on 40% of the cases that taxpayers are put into hardship which means they can’t pay the tax at this time. Sometimes it is called currently not collectible. Cases that are an issue at currently not collectible or hardship stay in there for a period of 2 to 3 years and come back out to the field at a later time.

2. 6.5 million people enter monthly payment plans and pay a certain amount based on their current documented financial statement.

Other taxpayers file an offer in compromise to settle their case for pennies on the dollar. The offer in compromise requires a lot of skill and expertise to have accepted by the Internal Revenue Service.

Call us today for free initial tax consultation. Hear the truth!

We are a full-service firm with a specialty in expertise in all IRS matters.

We have over 200 years professional tax experience and can fully resolve any IRS problem especially if you owe business tax debt and wish to settle with the Internal Revenue Service.

We can prepare all back tax filings and resolve your individual, business, or corporate tax problem.

What Can Extend the IRS 10 year Statute of Limitation, Former IRS Agent

by Fresh Start Tax | May 15, 2019 | Tax Help

Many people believe that the IRS is a 10 year statute of limitations on collection cases but in reality that is not true. admittedly about 90% of all cases do expire after the 10 years but is everything in life there are extenuating circumstances that extend the IRS 10 year statute of limitation.

I have taken this section under the internal revenue manual section 5 which deals with the collection division.. The list of notable items that extends the IRS collection statute of limitations. if you have any questions call me I am a former IRS agent teaching instructor and I can help you deal with some of the issues that arise because of the ten-year statute of limitation circumstances.

5.1.19.3.1 (05-19-2016)
Bankruptcy

In a case under the Bankruptcy Code, the CSED is suspended while the Service is prohibited from collecting, and for six months thereafter. For more information see IRC 6503(h)(2). Thus, the CSED is generally suspended while the automatic stay imposed by the bankruptcy is in effect. Even if the suspension of the CSED under IRC 6503(h) no longer applies, the CSED still may be suspended when substantially all the debtor’s assets remain in the custody or control of the bankruptcy court under IRC 6503(b).

5.1.19.3.2 (04-26-2018)
Judgment/Litigation

Per IRC 6502(a) a court action brought against the taxpayer for the collection of tax prior to the expiration of the collection statute extends the period to collect until the tax liability or judgment against the taxpayer is satisfied or becomes unenforceable.

5.1.19.3.2.2 (05-19-2016)
Suit to Reduce Assessments to Judgment

A suit to reduce the assessments to judgment must be filed prior to the expiration of the CSED to suspend the collection period. The filing of a suit will suspend the collection statute during litigation. For more information see IRM 5.17.4.7, Suit to Reduce Assessments to Judgment.

5.1.19.3.3 (04-26-2018)
Collection Due Process (CDP)

The CSED is suspended from the date the Service receives a timely filed request for a CDP hearing to the date the taxpayer withdraws their request for a CDP hearing or the date the determination from Appeals becomes final, including any court appeals. See IRC 6330 (e)(1).

If less than 90 days of the statute of limitations remains when the determination becomes final, the statute of limitations is extended to equal 90 days. The collection statute is not extended for equivalency hearings. See IRC 6330 (e)(1).

5.1.19.3.4 (04-26-2018)
Offer In Compromise

For requests to extend the CSED made prior to January 1, 2000 in connection with a pending offer prior to January 1, 2000, the CSED extension was affected by Treasury Regulation § 301.7122–1(f) (1960). Under this regulation the practice of the Service generally was to obtain from the taxpayer a waiver of the CSED for the period the offer in compromise was pending, while any installment of an accepted offer remained unpaid, and for one additional year thereafter.

For requests to extend the CSED made prior to January 1, 2000 in connection with a pending offer that extended the CSED beyond the original 10-year collection statute, a waiver of the CSED cannot extend the CSED beyond either December 31, 2002, or the original CSED, whichever is later,see section 3461(c)(2) (A) and (B) of the IRS Restructuring and Reform Act of 1998 .

For offers pending on or made after December 31, 1999, and before December 21, 2000, the collection statute of limitations is suspended by IRC 6331(k)(1) and (3) while the Service is prohibited from levying.

The Service is prohibited from levying and the CSED is suspended under the following provisions:

While an offer is pending with the Service,

For 30 days immediately following rejection of the offer for the taxpayer to appeal the rejection, and

If an appeal is requested within the 30 days, during the period while the rejection is being considered in Appeals.

CSED extensions for the period of time “while any installment remains unpaid” and “for one additional year thereafter” are eliminated. No days are suspended before December 31, 1999, or after December 20, 2000.
Note:

If a request for CSED extension was made on December 31, 1999 in connection with a pending OIC, the statute is extended concurrently under both RRA 98 section 3461(c)(2) and section 6331(k)(1) and (3).

The Community Renewal Tax Relief Act of 2000, effective December 21, 2000, amended IRC 6331(k)(3) and eliminated the suspension of the CSED while offers (and installment agreements) were pending.

The Job Creation and Workers Assistance Act of 2002, effective March 9, 2002, amended IRC 6331(k)(3) and reinstated the same CSED suspensions as described above with respect to both offers and installment agreements while levy is prohibited. This amendment suspends the CSED for the number of days on or after March 9 that an offer is pending, during the 30 days to appeal the rejection.

Example:

An offer is rejected on March 4, 2002. March 4, 5, 6, 7 and 8 would not be suspended. The 30-day period for appealing the rejection starts on March 5 and ends on April 3. Of that 30-day period, the collection statute would be suspended starting on March 9 through and including April 3. If the taxpayer requests an appeal on or before April 3, then the collection statute will be suspended until Appeals sends the taxpayer a letter giving its decision.

Cases may be encountered where prior rules were in effect. For more information see IRM 5.8.10.7, Effect of Previous Offers on Collection Statute.

If only one party to a joint assessment files an OIC, then the CSED is suspended just for that person. The appropriate CSED suspension code must be input on IDRS to identify the specific taxpayer for which the offer applies. They are described below:

Fla. Sales Tax Audit Experts + Tax Attorney, Tax Lawyer Former Agents, Experienced, Affordable = Ft. Lauderdale, Miami

by Fresh Start Tax | May 15, 2019 | Tax Help

We are affordable Florida Sale Tax Experts, former agents who know the law, the system, and get you results.

We have worked thousands of cases since 1982 and we are former government agents, managers and supervisors.

On staff are not only former agents but CPA’s, Tax attorneys and lawyers as well.

Call us for a free initial tax consultation you’ll never have to worry. You will never speak to the government.

Do not be bullied by Florida Sales Tax division. Know Your Rights.

Has your company has been issued a Notice of Intent to Audit Books and Records from the State of Florida?

Hire Former Florida Sales and Use Tax Auditors completely resolve your case.

We are a local South Florida tax firm.

We can have the auditor come to our professional offices thus avoiding a State of Florida Auditor from taking up your space, your employee’s time, snooping around your business and asking questions to your employees.

Have Former State Tax auditors who know the systems, know the protocol and know settlement protocols resolve your sales and use tax matter.

We have practiced in South Florida since 1982 and we are A+ rated by the Better Business Bureau.

Conduct the Florida Sales Tax Audit at our location and not yours

You should never have any tax auditor show up and audit at your location.
Factors that can trigger a Florida business to become a target of a Florida sales tax audit

The state of Florida Department of revenue audits taxpayers for various reasons.

The list below could have triggered your Florida sales tax audit.

1. Do you purchase supplies for your business from out-of-state vendors or through the Internet?
2. Did you sell goods at retail, or wholesale products which you manufacture,
3. Did you sell services in Florida, can you be sure you are collecting the appropriate amount of sales tax on the sale of your goods or services?
4. If the answer is “yes” to any of these questions you might be targeted by the State of Florida for a sales and use tax audit.

State of Florida targets all business you may have been randomly selected

The state of Florida Sales Tax Audits targets different businesses, different industries and different geographical boundaries to make sure they have a very balanced approach to the sales tax audits in the state of Florida.

State of Florida Sales Tax must ensure total coverage for the entire state therefore all industries and businesses are included in sales tax audits.

No industries are excluded. The state of Florida keeps a sharp eye on all industry, new industries in potential targets of abuse.

When the state of Florida sales tax division finds widespread industry abuse they will put a lot of their time and resources into correction.

As a general rule that could mean convictions, heavy penalties, fines and certainly media and newspaper publicity.

They do this to get the attention of the public and mainly to help control industry abuses.

As a general rule when the state or federal agency puts out a number of press releases it is attempting to let the public know there plan a future attack.

It also should be noted that the state of Florida sales and use tax division conducts random audits as well as targeted audits.

Other factors that have to be considered for Florida Sales Tax Audits:

1. industries presently selected as targets

2. prior audit history

3. amount of exempt sales being claimed

4. Amount of total sales being reported

5. ratio of exempt sales to total sales

6. location of the business

7. adverse information from customers or employees

Most of these factors are obvious but the state of Florida sales tax audit division is always coming up with more programming targeting the industries where revenue success is obvious.

Companies with a history of prior audits where there was significant recovery will definitely get audited again.

Larger companies with high amounts of sales and those reporting high amounts of exempt sales are also targeted.

You should also be aware that Florida sales tax audits occur many times when ex- spouses and former employees turn and companies, individuals, and corporations that have been tax cheats over the years purely for retribution.

Florida’s voluntary disclosure program ( VDP )

Florida’s voluntary disclosure program allows a taxpayer to report previously unpaid or underpaid tax liabilities for any tax administered by the Department of Revenue. It is the taxpayer’s opportunity to voluntarily pay these taxes without being penalized.

Who is eligible for VDP?

Anyone who has any tax liability for a tax administered by the Florida Department of Revenue and who has not been previously contacted by the Department concerning the liability.

Disclosures relating to delinquencies or deficiencies that are obvious and would routinely generate a billing if not otherwise self-disclosed are not eligible for the program.

What are the benefits to the taxpayer?

When the tax and interest liabilities have been paid, all penalties will be waived unless tax has been collected and not remitted. In those instances, a five percent penalty will be imposed, unless reasonable cause is presented.
How far back will the Department look?

Three years immediately preceding the postmark date of the voluntary disclosure request. Failure to take advantage of this program could result in the Department holding the taxpayer liable for the applicable (longer) limitation periods of the relevant taxes.

Have you been contacted by the criminal division?

If you have been contacted by a State of Florida criminal investigator it is in your best interest to contact one of our attorneys or lawyers.

Professional Tax Representation

Enrolled Agents, Former Sales Tax Agents, State of Florida
Full Service Accounting Tax Firm,
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 Net Radio.com – Monthly Radio Show-Business Weekly
Former Sales Tax Auditor of 16 years
FLORIDA Sales Tax Audits – Attorneys, Lawyers, Former Agents

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 or Unable to Pay
Payment Plans, Installment Agreements, Structured agreements
Abatement of Penalties and Interest
State Sales Tax Cases
Payroll / Trust Fund Penalty Cases / 6672
Filing Late, Back, Unfiled Tax Returns
Tax Return Reconstruction
Consulting, Services, Representation
INCOME, BUSINESS TAX CONSULTANTS
bookkeeping and accounting services
Tax Court
Florida Sales Tax Defense

IRS Tax Attorney + Expert IRS Tax Audit Defense + Affordable, Experienced + Ft. Lauderdale, Miami

by Fresh Start Tax | May 15, 2019 | Tax Help

Expert IRS Tax Attorney is your best Tax Defense. Since 1982, Affordable + A Plus Rated BBB.

IRS Tax Attorneys, CPA’s Former IRS Agents, Since 1982. Hear the truth.

You go to your mailbox and there it is, a nasty gram!

Everyone fears the dreaded letter from the IRS. You open it up and it is some of the worst news possible, ” you have been selected for a tax audit for years……….

There are ways you can protect yourself from a IRS Tax Audit.

IRS Tax Attorney + Expert IRS Tax Audit Defense + Affordable, Experienced + Ft. Lauderdale, Miami

As IRS Tax Attorneys, Former IRS Agents, Managers and Instructors we have discovered ways for the average taxpayer to keep themselves from a IRS tax audit.

When you retain our firm you’ll never have to speak to IRS.

As former IRS agents, managers and teaching instructors we know all the IRS systems, and the methodologies, and the best way to settle your tax case for the lowest amount possible.

When dealing with the IRS the key making sure we can provide the very best tax defense, make sure the IRS will not dig into other years and if you’re going to owe money, work out a plan or a settlement at the same time.

How to Protect Yourself From An IRS Audit

1. Have your tax return prepared by a reliable tax return preparer. If your preparer promises large refunds without asking to see the proper records for deductions and credits, you know that you will be audited after the return has been filed.

When your tax return preparer deducts items that should have not been deducted, you’re the one who will be audited and you will be required to pay the additional tax, interest and penalties.

If the IRS believes that your tax return preparer is incompetent or deducts large non-existent deductions, all of the returns prepared by that return preparer will more likely be selected for audit.

You do not want a tax return preparer who promises you the largest refund, but a tax return preparer who will compute the correct tax. It is recommended that you hire a tax return preparer who knows the tax law and who deducts items on the tax return that you can properly document.

Don’t forget you are ultimately responsible for the additional tax, interest and penalties.

2. File all your required tax returns by the due date. If you haven’t filed your tax returns, the IRS will eventually audit on you.

By not filing your tax returns timely, the IRS will assess the failure to file penalty at 5% per month up to 25% of the tax. If the IRS determines that your failure to file was attributable to fraud, the penalty will be 15% per month up to 75% of the tax.

Thus, you are always better off filing the tax return by the due date, even if you don’t have the funds to pay the tax because you will not be assessed the failure to file penalties.

3. Report all of your income shown on the Form 1099’s that you have received. Even if you don’t receive a 1099, you still have to report all of your income. If you file your tax return without reporting all of your income, you are risking an audit.

If the IRS audits your tax return and finds omitted income, you will be assessed tax on the omitted income plus interest on the tax computed from the due date of the tax return to the date that the tax is paid.

Then, the IRS will apply the 20% accuracy related penalty or the 75% fraud penalty on the additional tax plus the interest on the penalties computed from the due date of the tax return to the date that it is paid.

4. Don’t deduct an office in a home. To qualify for an office in a home deduction, you must use the office for work and it must be your primary place of business. Most taxpayer’s abuse this deduction.

Unless, your office in the home is your primary place of business, don’t take this deduction.

Further, let’s say that you properly documented that you used 15% of your residence for business, when you sell the residence, the IRS will correctly argue that 15% of the gain from the sale is taxable income. This will create unintentional tax liability on your part. Unless you have a compelling reason to take this deduction, stay away from it.

5. Don’t deduct a large Sch C loss, unless you truly have a loss. A large Sch C loss means that your business deductions exceeded your income from the activity.

The IRS will be questioning you on the source of the funds to pay for those excess deductions. You will need to document sources of the non-taxable income to pay for that loss. If you sold assets to fund the loss, you will need to document those sales.

The possible sources of the non-table income would include loans, gifts and inheritances. These sources will have to be documented to the IRS, if requested by them.

The documentation would include copies of checks, closing papers, gift tax returns of the person who made the gifts and estate tax returns for inherited funds.

6. Don’t deduct a loss from a business activity that the IRS can classify as a hobby loss, unless you have the documentation for that loss.

If you deduct a loss from a horse racing, dog racing, car racing, a boat chartering activity or any other activity that is fun; the IRS will ask you to prove that the activity is engaged for profit.

Thus, you should have a separate bank account for these activities and a business plan on how you expect to make a profit from the activity. You will need to show valid business projections.

7. When you deduct donations of property to a charitable organization, you need to have the required documentation that will always include a valid appraisal. Only deduct what you actually donated to the charitable organizations and can verify with copies of canceled checks.

8. When you deduct a casualty loss, you need the proper documentation for the deduction. The documentation will always include an appraisal of the property before and after the casualty.

The amount reimbursed by insurance for the casualty. You will also need to prove your adjusted basis in the property before the casualty.

If you have a theft loss, make sure that you report the theft to the police and obtain a police report for the incident.

9. You should always be prepared for an audit by having in your possession all of the documents needed to verify the items shown on your tax return even before it is ever audited.

You do not want to search for the verification after your tax return has been selected for audit by the IRS.

10. If you are selected for a tax audit, call Fresh Start Tax LLC to ensure the best possible results.

Protect yourself from an IRS tax audit. Have Fresh Start Tax LLC prepare your next tax return.

IRS Tax Attorney + Expert IRS Tax Audit Defense + Affordable, Experienced + Ft. Lauderdale, Miami