by Fresh Start Tax | Mar 28, 2019 | Tax Help
We are former IRS agents and managers who know the system and secrets behind tax audits. Since 1982, A plus Rated.
We have over 200 years of professional tax experience and over 100 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service.
We are a local South Florida tax firm. Our former IRS agents worked out of the local South Florida IRS offices.
What has happened with the IRS?
Over the last couple of years the Internal Revenue Service estimated that they have paid over $20 billion in frivolous tax credit claims and they plan to close the loophole used by certain practitioners in the area of abuse.
Special teams of agents have been formed to audit tax preparers that they have flagged or have the potential for abuse.Keep in mind, some of these are random audits as well.
If you have received a letter or IRS has knocked on your door, you may want to give us a call. Would not be in your best interest speak to IRS unrepresented unless your absolutely squeaky clean.
IRS is Auditing for Due Diligence Compliance (no more free money on tax credits)
Audits for compliance with refundable credit and head of household (HOH) filing status due diligence requirements are another tier of our Preparer Compliance Program.
We look at returns with a high chance of errors completed by the same preparer and use that information to select preparers for audits. We may have contacted the preparer using one of the other tiers of our Preparer Compliance Program but we don’t use all of them for every preparer.
IRS Audit Visits
Before the filing season begins, IRS employees conduct due diligence audits based on the prior year returns. We schedule an appointment in advance for these pre-filing season audits and we expect preparers to schedule the audit within 15 days.
During the filing season, we conduct due diligence audits without advance notice. We previously sent the preparers a letter informing them of a potential audit. We may also audit the preparer’s client returns.
What Happens During the Audit?
During these audits, the IRS employee provides official IRS identification. The examiner interviews you about your business practices. If you are an employee of a tax preparation firm, the examiner also contacts your employer for an interview.
The examiner is looking for compliance with all four due diligence requirements.
The tax examiner reviews at least 25 returns reviewing the following documents:
• The preparer’s due diligence records,
• The probing questions the preparer asked the client, and the client’s responses,
• All questionnaires, checklists, worksheets and
• Copies of any client provided documents relied on to determine eligibility for head of household (HOH) filing status, or to determine eligibility for, or compute the amount of , the earned income tax credit (EITC), child tax credit (CTC), including additional child tax credit (ACTC) and credit for other dependents (ODC), and American opportunity tax credit (AOTC).
If the examiner identifies failures to meet due diligence on any of the returns, they may expand the audit to more returns.
During the audit, the examiner looks for evidence showing the preparer met the knowledge standard.
To meet the knowledge standard, a preparer must:
• Know the law
• Ask the right questions, especially when the client gives information that appears incorrect, inconsistent or incomplete
• Document the questions asked and the responses given by your client
• Get all the facts to make sure your client truly qualifies for EITC, CTC/ACTC/ODC, AOTC or HOH filing status
While auditing for due diligence, we also ensure that the preparer is in compliance with the PTIN, Preparer Tax Identification Number requirements and his or her personal tax return filing requirements.
What Happens if My Records Don’t Show I Met Due Diligence Requirements?
We assess penalties when we find a preparer did not comply with due diligence requirements.
We continuously improve our audit selection process to find those preparers with a high likelihood of filing returns with errors. Using this process, we penalized over ninety percent of the preparers we selected for audit.
We assess most penalties against preparers who did not meet the knowledge standard.
The penalty for not meeting due diligence requirements is $520* for each credit (EITC, CTC/ACTC/ODC and AOTC), or HOH filing status claimed on a return filed in 2019.
Other return-related preparer penalties can be as much as $5,000.
* The penalty amount is adjusted for cost of living under IRC Section 6695(h).
What if I Don’t Agree with the Penalties?
The first thing you do if you are unrepresented is to call former IRS agents and managers who can help you with this fight.
Expert Help+ IRS Auditing Tax Preparers + EITC TAX AUDIT * former irs agents help + Miami, Ft. Lauderdale, Hollywood, Hallandale, Deerfield , Pompano, Delray, Boynton Beaches
by Fresh Start Tax | Mar 28, 2019 | Tax Help
We are former IRS agents and managers who know the system and secrets behind tax audits. Since 1982, A plus Rated.
We have over 200 years of professional tax experience and over 100 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service.
What has happened
Over the last couple of years the Internal Revenue Service estimated that they have paid over $20 billion in frivolous tax credit claims and they plan to close the loophole used by certain practitioners in the area of abuse. special teams have been formed to audit tax preparers that they have flagged or have the potential for abuse.
If you have received a letter or IRS has knocked on your door, you may want to give us a call. Would not be in your best interest speak to IRS unrepresented unless your absolutely squeaky clean.
IRS is Auditing for Due Diligence Compliance (no more free money on tax credits)
Audits for compliance with refundable credit and head of household (HOH) filing status due diligence requirements are another tier of our Preparer Compliance Program.
We look at returns with a high chance of errors completed by the same preparer and use that information to select preparers for audits. We may have contacted the preparer using one of the other tiers of our Preparer Compliance Program but we don’t use all of them for every preparer.
Audit Visits
Before the filing season begins, IRS employees conduct due diligence audits based on the prior year returns. We schedule an appointment in advance for these pre-filing season audits and we expect preparers to schedule the audit within 15 days.
During the filing season, we conduct due diligence audits without advance notice. We previously sent the preparers a letter informing them of a potential audit. We may also audit the preparer’s client returns.
What Happens During the Audit?
During these audits, the IRS employee provides official IRS identification. The examiner interviews you about your business practices. If you are an employee of a tax preparation firm, the examiner also contacts your employer for an interview.
The examiner is looking for compliance with all four due diligence requirements.
The tax examiner reviews at least 25 returns reviewing the following documents:
• The preparer’s due diligence records,
• The probing questions the preparer asked the client, and the client’s responses,
• All questionnaires, checklists, worksheets and
• Copies of any client provided documents relied on to determine eligibility for head of household (HOH) filing status, or to determine eligibility for, or compute the amount of , the earned income tax credit (EITC), child tax credit (CTC), including additional child tax credit (ACTC) and credit for other dependents (ODC), and American opportunity tax credit (AOTC).
If the examiner identifies failures to meet due diligence on any of the returns, they may expand the audit to more returns.
During the audit, the examiner looks for evidence showing the preparer met the knowledge standard.
To meet the knowledge standard, a preparer must:
• Know the law
• Ask the right questions, especially when the client gives information that appears incorrect, inconsistent or incomplete
• Document the questions asked and the responses given by your client
• Get all the facts to make sure your client truly qualifies for EITC, CTC/ACTC/ODC, AOTC or HOH filing status
While auditing for due diligence, we also ensure that the preparer is in compliance with the PTIN, Preparer Tax Identification Number requirements and his or her personal tax return filing requirements.
What Happens if My Records Don’t Show I Met Due Diligence Requirements?
We assess penalties when we find a preparer did not comply with due diligence requirements.
We continuously improve our audit selection process to find those preparers with a high likelihood of filing returns with errors. Using this process, we penalized over ninety percent of the preparers we selected for audit.
We assess most penalties against preparers who did not meet the knowledge standard.
The penalty for not meeting due diligence requirements is $520* for each credit (EITC, CTC/ACTC/ODC and AOTC), or HOH filing status claimed on a return filed in 2019.
Other return-related preparer penalties can be as much as $5,000.
* The penalty amount is adjusted for cost of living under IRC Section 6695(h).
What if I Don’t Agree with the Penalties?
The first thing you do if you are unrepresented is to call former IRS agents and managers who can help you with this fight.
Also available:
See Appeal of Due Diligence Penalties
Are You a Certified Acceptance Agent?
To reduce the burden on preparers, IRS combines the due diligence audits with certified acceptance agent visits as needed.
Expert Help, IRS Auditing Tax Preparers + EITC TAX AUDIT * former irs agents help + Los Angeles, San Diego, San Jose, San Fransisco, Fresno, Sacramento
by Fresh Start Tax | Mar 28, 2019 | Tax Help
We are former IRS agents and managers who know the system and secrets behind tax audits.
We have over 200 years of professional tax experience and over 100 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service.
Over the last couple of years the Internal Revenue Service estimated that they have paid over $20 billion in frivolous tax credit claims and they plan to close the loophole used by certain practitioners in the area of abuse. special teams have been formed to audit tax preparers that they have flagged or have the potential for abuse.
If you have received a letter or IRS has knocked on your door, you may want to give us a call. Would not be in your best interest speak to IRS unrepresented unless your absolutely squeaky clean.
What is Going On:
Auditing for Due Diligence Compliance
Audits for compliance with refundable credit and head of household (HOH) filing status due diligence requirements are another tier of our Preparer Compliance Program.
We look at returns with a high chance of errors completed by the same preparer and use that information to select preparers for audits. We may have contacted the preparer using one of the other tiers of our Preparer Compliance Program but we don’t use all of them for every preparer.
Audit Visits
Before the filing season begins, IRS employees conduct due diligence audits based on the prior year returns. We schedule an appointment in advance for these pre-filing season audits and we expect preparers to schedule the audit within 15 days.
During the filing season, we conduct due diligence audits without advance notice. We previously sent the preparers a letter informing them of a potential audit. We may also audit the preparer’s client returns.
What Happens During the Audit?
During these audits, the IRS employee provides official IRS identification. The examiner interviews you about your business practices. If you are an employee of a tax preparation firm, the examiner also contacts your employer for an interview.
The examiner is looking for compliance with all four due diligence requirements.
The tax examiner reviews at least 25 returns reviewing the following documents:
• The preparer’s due diligence records,
• The probing questions the preparer asked the client, and the client’s responses,
• All questionnaires, checklists, worksheets and
• Copies of any client provided documents relied on to determine eligibility for head of household (HOH) filing status, or to determine eligibility for, or compute the amount of , the earned income tax credit (EITC), child tax credit (CTC), including additional child tax credit (ACTC) and credit for other dependents (ODC), and American opportunity tax credit (AOTC).
If the examiner identifies failures to meet due diligence on any of the returns, they may expand the audit to more returns.
During the audit, the examiner looks for evidence showing the preparer met the knowledge standard.
To meet the knowledge standard, a preparer must:
• Know the law
• Ask the right questions, especially when the client gives information that appears incorrect, inconsistent or incomplete
• Document the questions asked and the responses given by your client
• Get all the facts to make sure your client truly qualifies for EITC, CTC/ACTC/ODC, AOTC or HOH filing status
While auditing for due diligence, we also ensure that the preparer is in compliance with the PTIN, Preparer Tax Identification Number requirements and his or her personal tax return filing requirements.
What Happens if My Records Don’t Show I Met Due Diligence Requirements?
We assess penalties when we find a preparer did not comply with due diligence requirements.
We continuously improve our audit selection process to find those preparers with a high likelihood of filing returns with errors. Using this process, we penalized over ninety percent of the preparers we selected for audit.
We assess most penalties against preparers who did not meet the knowledge standard.
The penalty for not meeting due diligence requirements is $520* for each credit (EITC, CTC/ACTC/ODC and AOTC), or HOH filing status claimed on a return filed in 2019.
Other return-related preparer penalties can be as much as $5,000.
* The penalty amount is adjusted for cost of living under IRC Section 6695(h).
What if I Don’t Agree with the Penalties?
The first thing you do if you are unrepresented is to call former IRS agents and managers who can help you with this fight.
Also available:
See Appeal of Due Diligence Penalties
Are You a Certified Acceptance Agent?
To reduce the burden on preparers, IRS combines the due diligence audits with certified acceptance agent visits as needed.
Help IRS Auditing Tax Preparers + EITC TAX AUDIT * former irs agents help + NYC, Manhattan, Brooklyn, Queens, Bronx, Staten Island + New York
by Fresh Start Tax | Mar 27, 2019 | Tax Help
If the IRS has contacted you because they want to conduct an EITC tax audit, call former IRS agents before you talk to IRS.
Don’t lose your license or your business call former IRS agents who know the system and can minimize any damage that you may incur from an IRS tax audit.
We are the affordable IRS tax experts who have been practicing since 1982. We A+ rated by the BBB.
Upon your first initial tax consultation you will understand why we are one of the nation’s top tax defense firms.
You’ll never have to speak to the Internal Revenue Service. We handle all communication, letters and correspondence.
The Internal Revenue Service has formed special groups to go after tax preparers who are taking advantage of certain tax credits.
If this is happened to you may want to call us, why?
We are former IRS agents, managers and teaching instructors and know how to provide your very best tax defense.
How the process starts by IRS:
More and more tax preparers will start to get letters or personal visits from the Internal Revenue Service as IRS is completely expanding the compliance initiative across the United States.
If an IRS agent knocks on your door my advice would be to let them know you are going to be represented at the contact a tax professional to submit a power of attorney so you have a seasoned and experienced veteran conducting and explaining to IRS your best tax defense.
If you have received that knock on the door you want to provide the Internal Revenue Service your very best tax defense.
The IRS estimates one in four EITC claims contain some type of mistake, costing the government $11 billion to $14 billion per year in erroneous payments. Due to the volume of money caused by erroneous payments the federal government had to do something and has use new techniques to shut the system from gluttony.
The management of Internal Revenue Service feels they must stop the bleeding because the enormous amount of payments being lost from United States treasury and revenue.
Because the tax professional community prepares two-thirds of EITC claims, the quality of their work has a significant impact on reducing claims paid in error.
Errors occur for many reasons, including:
• Lack of knowledge about EITC tax law,
• Honest preparer mistakes,
• Client provides incorrect information intentionally or unintentionally,
• Disregard of EITC due diligence requirements,
• Blatant (criminal) disregard of tax laws to claim EITC in error,
A tiered compliance approach, initiated last year, focuses on reducing EITC errors by helping:
• Helping new EITC preparers get off to a good start,
• Ensuring experienced preparers who filed questionable EITC claims understand the law and their due diligence requirements,
• Conducting on-site visits or due diligence audits of preparers filing returns with high probability of EITC errors; and,
• Barring preparers with a history of non-compliance from return preparation.
This 4 facet compliance lessens the degree of risk for future errors. It also aligns with IRS’s overall effort to boost taxpayer compliance and strengthen industry standards within the tax professional community.
Consequences of Non-compliance
EITC return preparers who fail to meet the knowledge standard and other due diligence requirements are subject to civil penalties.
Their clients who filed a return with a false EITC claim could also face penalties in addition to repaying any credit paid in error plus interest. In some cases, I have seen the client sue the tax preparer and/or the business.
Penalties include:
• $500 penalty for each due diligence failure to comply for return preparers or their employers.
• A minimum $1,000 penalty against return preparers who prepare EITC claims if any part of an understatement of tax liability is due to an unreasonable position.
• A minimum $5,000 penalty against return preparers who prepare EITC claims if any part of an understatement of tax liability is due to reckless or intentional disregard of rules or regulations by the tax preparer.
• Clients face accuracy and/or fraud penalties, plus a ban from claiming EITC for 2 or 10 years for incorrect claims.
Return-related preparer penalties can also result in:
• Disciplinary action by the IRS Office of Professional Responsibility.
• Suspension or expulsion of the preparer’s firm from participation in IRS e-file.
• An injunction barring preparation of federal tax returns.
More than anything you do not want this case going to criminal and investigation for criminal enforcement. You want to make sure this stays a civil matter.
If you need professional help there is no Better tax professional that can assist you more than former IRS agents, managers and teaching instructors that can guide you through this tax preparation compliance audit.
IRS Auditing Tax Preparers + Help form Former IRS Agents + Compliance Audits, Don’t Lose Your License = Los Angeles = California Experts
by Fresh Start Tax | Mar 27, 2019 | Tax Help
If the IRS has contacted you because they want to conduct an EITC tax audit, call former IRS agents before you talk to IRS.
We are the affordable IRS tax experts who have been practicing since 1982.
We A+ rated by the BBB.
Upon your first initial tax consultation you will understand why we are one of the nation’s top tax defense firms.
You’ll never have to speak to the Internal Revenue Service.
The Internal Revenue Service has formed special groups to go after tax preparers who are taking advantage of certain tax credits.
These groups have hit the smaller shops it if you or your business happen five you can expect a knock on your door.
If this is happened to you may want to call us, why?
We are former IRS agents, managers and teaching instructors and know how to provide your very best tax defense.
How the process starts by IRS:
More and more tax preparers will start to get letters or personal visits from the Internal Revenue Service as IRS is completely expanding the compliance initiative across the United States.
If an IRS agent knocks on your door my advice would be to let them know you are going to be represented at the contact a tax professional to submit a power of attorney so you have a seasoned and experienced veteran conducting and explaining to IRS your best tax defense.
If you have received that knock on the door you want to provide the Internal Revenue Service your very best tax defense.
The IRS estimates one in four EITC claims contain some type of mistake, costing the government $11 billion to $14 billion per year in erroneous payments. Due to the volume of money caused by erroneous payments the federal government had to do something and has use new techniques to shut the system from gluttony.
The management of Internal Revenue Service feels they must stop the bleeding because the enormous amount of payments being lost from United States treasury and revenue.
Because the tax professional community prepares two-thirds of EITC claims, the quality of their work has a significant impact on reducing claims paid in error.
Errors occur for many reasons, including:
• Lack of knowledge about EITC tax law,
• Honest preparer mistakes,
• Client provides incorrect information intentionally or unintentionally,
• Disregard of EITC due diligence requirements,
• Blatant (criminal) disregard of tax laws to claim EITC in error,
A tiered compliance approach, initiated last year, focuses on reducing EITC errors by helping:
• Helping new EITC preparers get off to a good start,
• Ensuring experienced preparers who filed questionable EITC claims understand the law and their due diligence requirements,
• Conducting on-site visits or due diligence audits of preparers filing returns with high probability of EITC errors; and,
• Barring preparers with a history of non-compliance from return preparation.
This 4 facet compliance lessens the degree of risk for future errors. It also aligns with IRS’s overall effort to boost taxpayer compliance and strengthen industry standards within the tax professional community.
Consequences of Non-compliance
EITC return preparers who fail to meet the knowledge standard and other due diligence requirements are subject to civil penalties.
Their clients who filed a return with a false EITC claim could also face penalties in addition to repaying any credit paid in error plus interest. In some cases, I have seen the client sue the tax preparer and/or the business.
Penalties include:
• $500 penalty for each due diligence failure to comply for return preparers or their employers.
• A minimum $1,000 penalty against return preparers who prepare EITC claims if any part of an understatement of tax liability is due to an unreasonable position.
• A minimum $5,000 penalty against return preparers who prepare EITC claims if any part of an understatement of tax liability is due to reckless or intentional disregard of rules or regulations by the tax preparer.
• Clients face accuracy and/or fraud penalties, plus a ban from claiming EITC for 2 or 10 years for incorrect claims.
Return-related preparer penalties can also result in:
• Disciplinary action by the IRS Office of Professional Responsibility.
• Suspension or expulsion of the preparer’s firm from participation in IRS e-file.
• An injunction barring preparation of federal tax returns.
More than anything you do not want this case going to criminal and investigation for criminal enforcement. You want to make sure this stays a civil matter.
If you need professional help there is no Better tax professional that can assist you more than former IRS agents, managers and teaching instructors that can guide you through this tax preparation compliance audit.
Tax Preparers + Is IRS Conducting a EITC TAX AUDIT * former irs agent help + NYC, Manhattan, Brooklyn, Queens, Bronx, Staten Island + New York
by Fresh Start Tax | Mar 27, 2019 | Tax Help
Do not go into a tax audit unrepresented, use former IRS agents who know the system and the methodologies of IRS. Simply put, we are your best possible tax defense. Since 1982.
If you are a tax preparer and the IRS has contacted you by letter or in person for a compliance audit there is no one better to speak to than former IRS agents who know the system.
We are former IRS agents, managers and teaching instructors. Since 1982 A+ rated by the BBB. We are nationwide tax firm who has worked thousands and thousands of cases.
We are an affordable professional firm to help tax preparers fight the Internal Revenue Service.
Internal Revenue Service is making it a point to go after tax preparers who may be taking advantage of certain credit items that IRS offers the taxpayers.
The Internal Revenue Service has reportedly lost over $21 billion on false credits that have been taken by taxpayers and preparers. The Internal Revenue Service has formed special groups, a task force to root out the problem.
If you have been contacted by Internal Revenue Service your first call should be to us and do not speak to them.
As a result of this new mandate from the Internal Revenue Service, the service will be looking at tax preparers for random checks or those whose numbers have been pulled or flagged by the Internal Revenue Service CADE 2 computerized system.
It is very important that you have a professional and experienced representation.
If the IRS finds enough errors the IRS has the option of proceeding criminally, apply civil penalties or place sanctions and severe penalties on the company or the individuals.
Call us today to discuss your case and let truly experienced, affordable and former IRS agents defend you during an IRS tax audit.
You will never have to speak to the Internal Revenue Service.
What Happens During the Audit?
During these audits, the IRS employee provides official IRS identification. The examiner interviews you about your business practices.
If you are an employee of a tax preparation firm, the examiner also contacts your employer for an interview.
The examiner is looking for compliance with all four due diligence requirements.
The IRS examiner reviews at least 25 returns reviewing the following documents:
• The preparer’s due diligence records,
• The probing questions the preparer asked the client, and the client’s responses,
• All questionnaires, checklists, worksheets and
• Copies of any client provided documents relied on to determine eligibility for head of household (HOH) filing status, or to determine eligibility for, or compute the amount of , the earned income tax credit (EITC), child tax credit (CTC), including additional child tax credit (ACTC) and credit for other dependents (ODC), and American opportunity tax credit (AOTC).
If the examiner identifies failures to meet due diligence on any of the returns, they may expand the audit to more returns.
During the audit, the examiner looks for evidence showing the preparer met the knowledge standard.
To meet the knowledge standard, a preparer must:
• Know the law,
• Ask the right questions, especially when the client gives information that appears incorrect, inconsistent or incomplete,
• Document the questions asked and the responses
• Get all the facts to make sure your client truly qualifies for EITC, CTC/ACTC/ODC, AOTC or HOH filing status
While auditing for due diligence, we also ensure that the preparer is in compliance with the PTIN, Preparer Tax Identification Number requirements and his or her personal tax return filing requirements.
What Happens if My Records Don’t Show I Met Due Diligence Requirements?
We assess penalties when we find a preparer did not comply with due diligence requirements. We continuously improve our audit selection process to find those preparers with a high likelihood of filing returns with errors.
Using this process, we penalized over ninety percent of the preparers we selected for audit. We assess most penalties against preparers who did not meet the knowledge standard.
The penalty for not meeting due diligence requirements is $520* for each credit (EITC, CTC/ACTC/ODC, and AOTC), or HOH filing status claimed on a return filed in 2019.
Other return-related preparer penalties can be as much as $5,000.
Call us for free initial tax consultation and let our experience be your best friend.
Make sure you take your IRS audit as a tax preparer seriously, IRS has many available tools to go over and sanction both companies and individuals.
Help For Tax Preparer IRS Audit + IRS Auditing for Due Diligence Compliance * former irs agents + Los Angeles = California Experts
