by Fresh Start Tax | Mar 27, 2019 | Tax Help
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 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 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 + NYC, Manhattan, Brooklyn, Queens, Bronx, Staten Island + New York
by Fresh Start Tax | Mar 27, 2019 | Tax Help
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 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 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.
by Fresh Start Tax | Mar 27, 2019 | Tax Help
We are a team of affordable former IRS agents, managers and teaching instructors who are true experts for tax preparers going through IRS compliance audits.
We have a specialized team at our firm that deals specifically with the issues you are having.
We are one of few firms nationwide that dedicate ourselves to this expertise, to help all tax preparers going through IRS issues.
As former IRS agents, we know the exact process, the methodologies, and every possible way to provide your very best tax defense.
It only makes sense if you used to work at the Internal Revenue Service you understand the inside secrets of how to get you the very best results.
Call us today for a free initial tax consultation.
IRS Practice and Procedure. Need Help, Call us!
The IRS has finalized proposed regulations under Sec. 6695(g) imposing a penalty on tax return preparers who do not follow certain due-diligence requirements when preparing to file returns for taxpayers who are claiming:
1.head-of-household filing status,
2. the earned income tax credit (EITC), t
3. the child tax credit, the additional child tax credit (ACTC), or,
4. the American opportunity tax credit (T.D. 9842).
The IRS said it was adopting the existing proposed regulations without substantive change, other than adding some examples. It also removed the temporary regulations that were issued with the proposed regulations in 2016.
The Protecting Americans From Tax Hikes Act, P.L. 114-113, amended Sec. 6695 to apply to tax return preparers who fail to exercise due diligence when preparing a taxpayer’s return with a claim for the child tax credit or ACTC under Sec. 24 or the American opportunity tax credit under Sec. 25A.
Before these changes, the due-diligence requirements and the penalties for noncompliance applied only to claims for the EITC.
These new rules applied for returns or claims for refund prepared on or after Dec. 5, 2016, for tax years beginning after Dec. 31, 2015. For tax years beginning after Dec. 31, 2017, the law known as the Tax Cuts and Jobs Act, P.L. 115-97, added head-of-household filing status to the credits subject to the due-diligence requirements.
To comply with the due-diligence requirements, the preparer must submit Form 8867, Paid Preparer’s Due Diligence Checklist, and must complete the due-diligence worksheet in Form 1040, 1040A, 1040EZ, or any other form the IRS may prescribe for each credit, including showing how each credit was computed and the information used to make the computation.
The preparer must not know or have reason to know that any information the preparer used to determine eligibility for, and the amount of, each credit or head-of-household filing status, is incorrect.
The preparer also must make reasonable inquiries when required, documenting those inquiries and responses contemporaneously.
Finally, the preparer must retain for three years the Form 8867, the worksheet (or alternative records), and the record of how and when the information that was used to determine eligibility for head-or-household filing status and each credit, including the identity of any person furnishing information and a copy of any document the preparer relied on in preparing the return.
The regulations contain numerous examples illustrating how the penalties are to apply.
The penalty, which is adjusted for inflation, is currently $520 for each failure to comply, potentially resulting in multiple penalties arising from a single return.
Tax Preparer Tax Audits + IRS Compliance Audit + NYC, Manhattan, Brooklyn, Queens, The Bronx, Staten Island + New York Experts
by Fresh Start Tax | Mar 27, 2019 | Tax Help
If the IRS has sent you notice or letter CP 2566 this means that the Internal Revenue Service has prepared your tax return and this is not good news.
The reason the Internal Revenue Service prepared this return is because you do not file a tax return and IRS has information in their computerized system that you are liable to file a tax return. So IRS under 6020 B of the Internal Revenue Code code paired your tax return.
This is happened to you and you need help call us today for a free initial tax consultation and we will walk you through the process.
Generally, you will need to file an original tax return to reduce the amount of tax or claim a refund that you may have coming or pending from the Internal Revenue Service.
The bottom line, you have to file an original tax return or IRS will follow-up with full enforcement to collect the balance due.
As former IRS agents and teaching instructors we understand the systems and the processes to help you and make sure you’re getting treated fairly by the IRS.
Understanding Your CP2566 Notice
The IRS Letter Will Read like:
We didn’t receive your tax return. We calculated your tax, penalty and interest based on wages and other income reported to us by employers, financial institutions and others.
What you need to do
File your tax return immediately, or
Accept our proposed assessment by signing and returning the Response Form, or
Call us if you think you don’t have to file.
You may want to
Use the income information we sent with the notice, along with other income you received to prepare your return.
File your return to claim expenses and deductions you’re entitled to.
To receive a refund, you must file the return within three years of the due date for the specific tax year.
Review collection procedures for taxpayers filing and/or paying late for what happens when you don’t file a tax return
Review your records and make sure you filed all your prior returns. Download copies of prior year tax returns and products.
Check to see that you have enough money withheld from your paycheck to pay your taxes.
Call us to:
Learn more about your payment options if you owe additional taxes on your return.
Learn more about payment plans and installment agreements.
Learn more about Offers in Compromise.
Received IRS Notice/Letter CP2566 + IRS Prepared Your Tax Return * former irs agent tax help
by Fresh Start Tax | Mar 27, 2019 | Tax Help
If you have received IRS notice or letter CP 3291 and notice deficiency call former IRS agents who can help solve your problem today.
Understanding Your CP3219N Notice
if you have received this notice the IRS is saying that they did not receive your tax return and the Internal Revenue Service has calculated your tax, penalty and interest based on wages and other income reported to us by employers, financial institutions and others.
The CP3219N is a Notice of Deficiency (90-day letter).
Once you receive your notice, you have 90 days (150 days if the notice is addressed to a person who is outside the country) from the date of the notice to file a petition with the Tax Court, if you want to challenge the tax we proposed.
What you need to do
• If you want to challenge the deficiency determination, file a petition with the Tax Court.
• File your tax return immediately (no later than 90 days from the date of the CP3219N), or accept our proposed assessment by signing and returning the Response form.
If you want to file a petition with the Tax Court
• You can download a petition form and rules from the Tax Court’s website.
• Mail your petition to:
United States Tax Court
400 Second Street, NW
Washington, DC 20217
• You have 90 calendar days from the date of your CP3219N to file a petition with the Tax Court. The last day to file a petition is stated in your CP3219N.
If the CP3219N is addressed to a person who is outside of the United States, the deadline to file a petition with the Tax Court is extended to 150 days from the date of the CP3219N.
• If you file a petition, attach an entire copy of the CP3219N to the petition.
• The Tax Court has simplified procedures for taxpayers whose amount in dispute, including applicable penalties, is $50,000 or less per tax year.
You can find these simplified small tax case procedures on the Tax Court’s website.
You may want to…
• Use the income information included with the notice, along with other income you received to prepare your return.
• File your return to claim expenses and deductions you’re entitled to.
• To receive a refund, you must file the return within three years of the due date for the specific tax year.
by Fresh Start Tax | Mar 27, 2019 | Tax Help
Have you ever received any IRS notice or letter? Call former IRS agents today.
Understanding Your CP081 Notice
If you have received a notice or CP081 IRS is letting you know they haven’t received your tax return for a specific tax year.
The statute of limitations to claim a refund of your credit or payment for that tax year is about to expire.
If the statute of limitations expires you have no way of getting the money or that tax credit back so you have to take immediate action
What you need to do
• If you’re required to file this tax return, file immediately.
We’ll apply the credit amount shown on this notice to the tax you owe and refund any overpayment to you, if you don’t owe other taxes or obligations.
• If you’ve already filed this return and it has been over 8 weeks, send us a newly signed copy of your tax return. Be sure to attach copies of all schedules and other documents you included with your previously filed original tax return.
• If you want the credit transferred to another tax form, tax period or tax identification number, call us at 1-800-829-0115.
• If you don’t file your tax return or contact us, you’ll lose this credit. The Internal Revenue Code sets strict time limits for refunding or transferring credits.
You may want to
• Call 1-800-829-3676 (1-800-TAX-FORM) to order forms and publications or visit our website, www.irs.gov, to download them.
Answers to Common Questions
How long do I have to file a tax return to claim a refund?
Generally, you must file a tax return within 3 years from the due date of the return (including extensions) to receive a refund of any overpayment on your account.
After this statute of limitations expires, we can’t refund any overpayments.
Where do I send my return?
Send it to the address listed on the notice.
What should I do if I’ve just filed my tax return?
You don’t have to do anything if you filed your tax return within the last 8 weeks.
