by Fresh Start Tax | May 15, 2018 | Tax Help
A Christian IRS Tax Services Firm, IRS Representation, Since 1982, 1-866-700-1040
Proverbs 12:15 ESV:
The way of a fool is right in his own eyes, but a wise man listens to advice.<><
There are different Ways to Solve Back IRS Debt Problems to get tax relief for back taxes, Since 1982, Former IRS Agents Who Know the system.
1-866-700-1040 Free Christian Consults w/ Experts
We will review with you the various examinations to help, get rid of, relieve or eliminate you of your current IRS tax debt in obligation. We can file all back taxes as well.
Call today and hear the truth from former IRS Agents and Managers .<><
We will walk through all the programs to see what programs you qualify. Since 1982, Former IRS.
We are an Affordable professional tax firm that can offer you a free initial tax consultation and walk you through the process if you have a back balance due the Internal Revenue Service.
If you have balance due on back taxes and are looking to set up a payment agreement, file firm offer in compromise to settle your back tax debt or you need to file back tax returns, call us today for a free initial tax consultation.
We are an Affordable IRS settlement tax firm. It only takes one free Tax Consult.
We have over 95 years of direct IRS work experience.
FST IRS Experience:
We have worked out of the local, district, and regional tax offices of the Internal Revenue Service. We are true IRS Experts in the area of IRS tax settlement services.
How does IRS dispose of Tax Debt Cases? The 5 ways or programs for IRS Tax Debt
1. By Payment in full,
2. By smoothly Payments,
3. By the Acceptance of an offer in compromise, (this is how your completely eliminate the tax debt)
4. By statue expiration. (this is how your completely eliminate the tax debt)
5. For those who cannot pay their debt IRS has a non-collectible or hardship program.
Upon your initial free tax consultation we will walk through the various programs and let you know the easiest way to resolve your back tax debt.
The most important aspect of working tax debt cases is completely dependent on the individual or business financial statements.It is the most important factor.
Your current documented financial statement determines all.
IRS uses a very simple formula to determine their settlement process.
It is all about your assets and your income and your current necessary living expenses. There is a very specific formula.
IRS only allows certain expenses that are considered necessary living expenses.
There are charts available on what IRS allows. Anything not on those charts are disallowed and this is what trips out most taxpayers.
A simple review of your current financial statement and we can let you know the different programs you may be eligible for.
You will need to complete form 433F or form 433A for us to make a current determination. IRS will only use their financial statements.
It is critically important to know that you cannot pay less taxes unless you qualify for the offer in compromise program.
IRS has a very specific formula that they use to compute the offer in compromise.
The only way you can pay less tax is through the offer in compromise program. There is also an IRS pre-qualifier form.
I have over 40 years in this industry and it is critical if you want to settle your tax debt for the lowest possible amount you should go to true tax professionals.
Important information
All your tax returns will have to be filed before IRS will work your offer in compromise.
If you need help with your tax preparation call us and we can have a staff of Experts accountants and tax preparers complete all returns with or without records.
Also beware that many times the Internal Revenue Service want to make sure you are current in your withholding tax or your estimate tax payments are they will not close your work your case until you become fully compliant.
Beware of IRS tax settlement services companies.
We have been in this industry a long time there are many good companies in as many bad tax settlement service companies. For you to evaluate in IRS tax settlement service company you must ask to speak directly to the person who will be working your case.
Generally, when you call a tax services company, you are speaking to what is called a closer. That person is a salesman and will actually bill you and charge you for the services then your case gets passed down the line.
When you call fresh start tax, you will speak directly to the person who works your case and that person can give you a true evaluation on how and if IRS will accept an IRS tax settlement .
All IRS tax settlement service firms and companies are different.
Check out the BBB rating and make sure you have a true tax professional working your case.
I suggest you always hire someone who’s worked at the IRS because they are aware of the methodologies required to get your offer in compromise through the system.
Other ways to Solve Back IRS Taxes Debt or Back Tax Issues
As a general rule, you may apply for hardships, payment agreements or settle for an offer in compromise to settle your debt for pennies on the dollar.
We will review with you your financial statement and let you know what the lowest possible settlement IRS will accept. 40% of all persons that owe back taxes are issue into a hardship or are currently not collectible status and 6.5 million taxpayers enter into annual payment agreements.
With e programs you will not pay less tax. These programs are designed to keep IRS off your back.
The other way to pay less tax is for the ten-year statute of limitation to run out and your debt will be written off by the Internal Revenue Service.
If you want to file an offer in compromise I thought you’d like to know what the statistics are.
Last year over 78,000 offers in compromise/IRS tax debt settlement were filed by taxpayers and over 38% of those were accepted for average of $6500 per case. Approximately 40,000 taxpayers last year paid less tax.
At the current time there are 7500 cases in the offer queue. The average wait time is nine months. There are not enough IRS employees to work the current inventory.
Keep in mind this is a national average in your case is completely dependent on your individual financial statement.
We will not file for an offer in compromise unless you are a true candidate for the program. You must qualify.
There is a pre qualifier tool to find out if you are a settlement candidate for income or business tax debt.
Upon your initial tax consultation we’ll let you know if you are eligible to have an accepted offer in compromise by the Internal Revenue Service.
Due to the new fresh start tax initiative Internal Revenue Service had made it easier to file for the program. However this program is not for everybody.
Everyone wants to settle with IRS but there is a very specific format and methodology that must be followed.
There are many myths about the pennies on the dollar program so you need to hear the truth before spending any money.
There are many firms that take your money and then let you know after the fact you are not qualified. you need to know before hand whether you have a fighting chance. Being a former IRS agent employee gives you a huge advantage of having the review your offer in compromise to settle your tax debt.
At our firm we will take no clients money until we are no they are a true candidate for the settlement program.
There are many myths about the offer in compromise so IRS in their great wisdom provides a pre-qualifier tool to find out if taxpayers are eligible for the offer in compromise program so taxpayers do not give their hard-earned money to unsuspecting tax firms promising tax settlement s.
The Offer in Compromise + The New Fresh Start Tax Initiative
If you have any questions or issues about the offer in compromise program to settle or negotiate your debt for pennies on the dollar, call us today and we will review your case to let you know if you are a qualified and suitable candidate.
The IRS spends a lot of due diligence before they accept an offer in compromise.
It is possible for the IRS to spend over 20-40 hours working an offer in compromise.
IRS uses the Accuriant search engine, Google in a variety of other searches to check on assets and histories of taxpayers and businesses.
You want to make sure you are accurate and truthful on your financial statement.
The higher the dollar case the greater the due diligence. Many people ask why is this process not that simple. The answer is this, all accepted offers in compromise are a matter of public record for one year in the regional office where the offer was accepted.
The Internal Revenue Service does all that it can to make sure there is a matter of consistency within the offer in compromise program if not still be a tremendous public outcry.
One base rule for the offer in compromise program. IRS is only concerned about your income and assets. this includes your equity in your home, pension plans are IRA’s.
One nice thing about the IRS accepting your offer in compromise is that once you meet the terms of the settlement they will release your federal tax lien.
Below you will find out what you need to know about the offer in compromise program.
Beginning immediately FROM THE IRS :
The IRS will return any newly filed Offer in Compromise application where the taxpayer has not filed all required tax returns. The internal revenue service will immediately reject your offer in compromise. Any fees included with the OIC will also be returned.
This new policy does not apply to current year tax returns if there is a valid extension on file.
When IRS determines that they will settle with you, IRS will consider your unique set of facts and circumstances:
• Ability to pay;
• Income;
• Expenses; and
• Asset equity.
IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
Right now that is appox. 9 months
Make sure you are eligible for the offer in compromise to settle your back IRS tax debt.
Before IRS can consider your offer, you must be current with all filing and payment requirements.
You are not eligible if you are in an open bankruptcy proceeding.
Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.
Submit your offer in compromise to settle your IRS tax debt
You’ll find step-by-step instructors and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). Your completed offer package will include:
• Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
• Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
• $186 application fee (non-refundable); and
• Initial payment (non-refundable) for each Form 656.
Select a payment option on an IRS offer settlement
Your initial payment will vary based on your offer and the payment option you choose:
• Lump Sum Cash:
Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
• Periodic Payment:(most common)
Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
Understand the process to settle your tax debt on an IRS settlement offer to pay less tax
While your offer to pay less taxes is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Call us today for free initial tax consultation and speak to a true IRS tax expert who will walk you through the process of how to negotiate with IRS over back taxes and see if you qualify to pay less taxes for an IRS tax settlement .
IRS Christian Tax Services + Tax Relief + IRS Tax Debt + Tax Liens, Levy, Garnishments + Unfiled Back Taxes & Settlements
by Fresh Start Tax | May 15, 2018 | Tax Help
If you have received any IRS tax bill, IRS tax notice contact us today for free initial tax consultation. Since 1982. True Affordable, IRS Expert Tax help 1-866-700-1040
We are an Affordable professional tax firm with over 95 years of direct IRS work experience. We Know the system. We a local Florida firm.
help, IRS Tax Bills & Final Tax Notice, Seizure + Tax Relief settle Programs + Owe Back IRS Taxes Debt + Hillsborough County, Tampa, St. Petersburg, Largo
We have worked out of the local, district, and Florida regional tax offices of the Internal Revenue Service.
We are true IRS Experts in the area of IRS tax settlement services. We have worked as agents, supervisors, managers, and teaching instructors .
We know the IRS like the back of our hand. We can let you know today if IRS will settle with you.
Save Your Money, find out immediately. 1-866-700-1040
How much will IRS settle for on back taxes?
I cannot tell you the number of times I have answered that question as a former IRS agent. the bottom line is this simple, it all depends on your current financial statement.
Your current documented financial statement determines all.
IRS uses a very simple formula to determine their settlement process. It is all about your assets and your income and your current necessary living expenses. There is a very specific formula.
A simple review of your current financial statement and we can let you know the different programs you may be eligible for.
You will need to complete form 433F or form 433A for us to make a current determination.
It is critically important to know that you cannot pay less taxes and less you qualify for the offer in compromise program.
Negotiation with the IRS over back taxes is the job of the seasoned tax professional who knows the systems and the methodologies and the formulas of the Internal Revenue Service.
IRS has a very specific formula that they use to compute the offer in compromise. the only way you can pay less tax is through the offer in compromise program. There is also an IRS pre-qualifier form.
I have over 40 years in this industry and it is critical if you want to settle your tax debt for the lowest possible amount you should go to true tax professionals.
We can review with you the different IRS tax debt settlement programs and find out if you are a qualified and eligible for any of the IRS programs.
Just another reminder, the only way to pay less tax or to find out if IRS will settle with you is through the offer in compromise program which will be explained below.
Important information
All your tax returns will have to be filed before IRS will work your offer in compromise. If you need help with your tax preparation call us and we can have a staff of Experts accountants and tax preparers complete all returns with or without records.
Beware of most IRS tax settlement services companies
We have been in this industry a long time there are many good companies in as many bad tax settlement service companies. For you to evaluate in IRS tax settlement service company you must ask to speak directly to the person who will be working your case.
Generally, when you call a tax services company, you are speaking to what is called a closer. That person is a salesman and will actually bill you and charge you for the services then your case gets passed down the line.
When you call fresh start tax, you will speak directly to the person who works your case and that person can give you a true evaluation on how and if IRS will accept an IRS tax settlement .
All IRS tax settlement service firms and companies are different Check out the BBB rating and make sure you have a true tax professional working your case.
I suggest you always hire someone who’s worked at the IRS because they are aware of the methodologies required to get your offer in compromise through the system.
Other ways to Solve IRS Back Tax Debt
As a general rule, you may apply for hardships, payment agreements or settle for an offer in compromise to settle your debt for pennies on the dollar.
We will review with you your financial statement and let you know what the lowest possible settlement IRS will accept. 40% of all persons that owe back taxes are issue into a hardship or are currently not collectible status and 6.5 million taxpayers enter into annual payment agreements.
With e programs you will not pay less tax. These programs are designed to keep IRS off your back.
The other way to pay less tax is for the ten-year statute of limitation to run out and your debt will be written off by the Internal Revenue Service.
If you want to file an offer in compromise I thought you’d like to know what the statistics are.
Last year over 78,000 offers in compromise/IRS tax debt settlement were filed by taxpayers and over 38% of those were accepted for average of $6500 per case. Approximately 40,000 taxpayers last year paid less tax.
At the current time there are 7500 cases in the offer queue. The average wait time is nine months. There are not enough IRS employees to work the current inventory.
Keep in mind this is a national average in your case is completely dependent on your individual financial statement.
We will not file for an offer in compromise unless you are a true candidate for the program.
There is a pre qualifier tool to find out if you are a settlement candidate for income or business tax debt.
Upon your initial tax consultation we’ll let you know if you are eligible to have an accepted offer in compromise by the Internal Revenue Service.
Due to the new fresh start tax initiative Internal Revenue Service had made it easier to file for the program. However this program is not for everybody.
Everyone wants to settle with IRS but there is a very specific format and methodology that must be followed.
There are many myths about the pennies on the dollar program so you need to hear the truth before spending any money.
There are many firms that take your money and then let you know after the fact you are not qualified. you need to know before hand whether you have a fighting chance.
Being a former IRS agent employee gives you a huge advantage of having the review your offer in compromise to settle your tax debt.
At our firm we will take no clients money until we are no they are a true candidate for the settlement program.
There are many myths about the offer in compromise so IRS and in their great wisdom provides a pre-qualifier tool to find out if taxpayers are eligible for the offer in compromise program so taxpayers do not give their hard-earned money to unsuspecting tax firms promising tax settlement s.
If you have any questions or issues about the offer in compromise program to settle or negotiate your debt for pennies on the dollar, call us today and we will review your case to let you know if you are a qualified and suitable candidate.
The IRS spends a lot of due diligence before they accept an offer in compromise. The Pay Less program is not suited for everybody.
It is possible for the IRS to spend over 20- 40 hours working an offer in compromise.
IRS uses the Accuriant search engine, Google in a variety of other searches to check on assets and histories of taxpayers and businesses. You want to make sure you are accurate and truthful on your financial statement.
On cases over $100,000 it is typical they will check your credit report for the accuracy of your financial statement. The higher the dollar case the greater the due diligence.
Many people ask why is this process not that simple.
The answer is this, all accepted offers in compromise are a matter of public record for one year in the regional office where the offer was accepted.
The Internal Revenue Service does all that it can to make sure there is a matter of consistency within the offer in compromise program if not still be a tremendous public outcry.
One base rule for the offer in compromise program. IRS is only concerned about your income and assets. this includes your equity in your home, pension plans are IRA’s.
One nice thing about the IRS accepting your offer in compromise is that once you meet the terms of the settlement they will release your federal tax lien.
Below you will find out what you need to know about the offer in compromise program.
Beginning immediately:
The IRS will return any newly filed Offer in Compromise application where the taxpayer has not filed all required tax returns. The internal revenue service will immediately reject your offer in compromise.
Any fees included with the OIC will also be returned.
This new policy does not apply to current year tax returns if there is a valid extension on file.
When IRS determines that they will settle with you, IRS will consider your unique set of facts and circumstances:
• Ability to pay;
• Income;
• Expenses; and
• Asset equity.
IRS will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
Right now that is appox. 9 months.
Make sure you are eligible for the offer in compromise to settle your back IRS tax debt.
Before IRS can consider your offer, you must be current with all filing and payment requirements.
You are not eligible if you are in an open bankruptcy proceeding.
Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.
Submit your offer in compromise to settle your tax debt on back IRS taxes
You’ll find step-by-step instructors and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF). Your completed offer package will include:
• Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
• Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
• $186 application fee (non-refundable); and
• Initial payment (non-refundable) for each Form 656.
Select a payment option on an IRS offer settlement
Your initial payment will vary based on your offer and the payment option you choose:
• Lump Sum Cash:
Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
• Periodic Payment:
Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
Understand the process to settle your tax debt o n an IRS settlement offer to pay less tax
While your offer to pay less taxes is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Call us today for free initial tax consultation and speak to a true IRS tax expert who will walk you through the process of how to negotiate with IRS over back taxes and see if you qualify to pay less taxes for an IRS tax settlement .
help, IRS Tax Bills & Final Tax Notice, Seizure + Tax Relief settle Programs + Owe Back IRS Taxes Debt + Hillsborough County, Tampa, St. Petersburg, Largo 1-866-700-1040
by Fresh Start Tax | May 15, 2018 | Tax Help
IRS & Sales Tax Audit help – Have Former IRS Managers & Agents defend your Federal or State Tax Audit, We Know the system 1-866-700-1040
We have 205 years of direct tax experience, 95 years of working for the IRS in the local, district and regional offices.
Being former IRS agent managers and supervisors in the Audit division gives us a unique advantage & can change the result of an IRS or a Sales Tax Audit.
We know the settlement techniques and formulas to save your money.
Be worry free, call us today.
It only makes sense to have Former IRS Agents and IRS Tax Audit Managers handle your IRS tax Audit and give you the most experienced and successful IRS Tax Audit help.
Facts about IRS Tax Audits:
The IRS Audits a total of 1,391,581 tax returns a year.
The IRS field agents complete more that 310,000 Audits by office or business visits a year.
The IRS completes over 1,081,152 correspondence Audits a year.
IRS has installed new software tracking systems with the development of the CADE 2 computer to spot and recognize tax Audits more proficiently
IRS collected over $10 billion dollars a year from IRS tax Audits.
IRS employs over 13,000 IRS Auditors.
$5.2 billion dollars are collected through the IRS document matching program.
* numbers vary from year to year
IRS Policy Statement P-4-21. It states “The primary objective in selecting returns for examination is to promote the highest degree of voluntary compliance on the part of taxpayers.”
The IRS Tax Audit Examination Plan
The plan that is used by the IRS is based on long range coverage planning, and objectives on the resources requested in the Congressional Budget. From this, there is an established plan where staff years are allocated to all area IRS offices using resource allocation and a prescribed methodology.
Each Area Manager of the IRS is responsible for preparing an area response following instructors from the National Headquarters.
Staffing for the IRS Tax Audit
Staffing is based on the examination priorities that differs from office to office and region to region, front loaded programs set up before hand, historic examination rates adjusted to yield sure ended results and Audits that match experience of the personnel.
Each region is excepted to produce tax Audits and money from tax Audits. IRS is funded thru results.
Why the IRS/Sales Audits Tax Returns
a. Front Loaded Programs
Front Loaded programs are those tax Audits that IRS DC headquarters has determined are very important and a considerable amount of time must be spent on e programs and activities. Each area has discussions within management as to what the programs should be for each region, district, and office.
Some of the programs are:
Special enforcement programs – An example of this may be compliance of all flee market vendors, a program I was involved with
High Income non-filers – The IRS would get their information from a match program of w-2’s and 1099’s and match up social security numbers against filed returns
Abusive Tax Avoidance – This could be in the area of offshore activities
Offshore credit card program
National Research programs – Those set forth by management after doing a trends project
FBAR filing – IRS is currently targeting those with overseas bank accounts
Non- filers – IRS is presently forming a task force to seek non-filers though aggressive means.
b. The IRS makes sure there is balanced coverage.
The National Office makes sure there is a balanced approach for Audit return delivery and tax compliance. Resources and inventory and the size of personnel all go into this formula. The focus is blended into e areas:
individual returns less that $100,000.
individual returns greater that $100,000 but less that $200,000.
individual returns greater that $ 200,000.
Small Business Corporation.
Small Business Flow-Through Entities – S Corporation, Fiduciaries and Partnerships.
c. Classification Plan
The IRS will prepare a plan, which is classified. A National DIF score indicator is issue on all Federal Income tax returns that are filed.
Each tax return has certain instructors that contribute to its score such as Gross Income, Adjusted Gross Income and line item expense.
There are several classified secrets that go into the DIF score.
Each tax return is processed through the IRS computer line item by line item.
A DIF score label is issue on every tax return with its DIF number. A tax examiner or Revenue Agent manually eyeballs each and every tax return with a high DIF score. The examiner then determine which return has the highest probability of tax Audit success.
d. DIF Cutoff Score
The IRS will calculate the Area DIF cutoff score for each activity code, giving consideration to the selection rate. This is the lowest DIF score necessary to secure the number of returns required for Audit.
For example, if the return plan shows 225 returns for an activity code and the selection rate is 70%, the IRS will need to order 321 returns (225/70%).
The DIF Cut off Score is 500. The number of returns with DIF scores greater that 550 is 280, which is less that the number of returns required, so the lowest DIF score on an ordered return will be in the range of 500 to 550 and the DIF cutoff score is 500. This is the IRS example as found in the IRS IRM section 4.
e. Where your case is worked
Examination inventory is assigned to IRS offices based on ZIP codes, using the Look up Tables at Martinsburg Computing Center.
f. High Assault Risk Areas
Certain ZIP code areas are identified as High Assault Risk Areas. There are special instructors the IRS has regarding e Audits. These returns will be Audited.
Survey of Examination Cases. The IRS can look over your case and close it with an eyeball look.
While cases should be selected and started in accordance with all guidelines, in a limited number of circumstances, there may be returns that appear in the “judgment of the examiner and manager” to warrant survey without taxpayer contact. That is to not even contact the taxpayer.
Cases delivered to the IRS area manager will generally fall into one of three categories: mandatory work, strategic (priority program) work, and non-strategic work.
Mandatory work includes nationally-coordinated research projects such as NRP and employee Audits (excludes “new” IRS employee Audits)
Strategic work is identified annually in the Exam Program Letter which can be found at http://sbse.web.irs.gov/Exam/.
The procedures to survey strategic work and referrals from other business units, “new” employee Audits and cases with previous taxpayer contact require an explanation for the rationale for the survey.
Cases that are not mandatory work, strategic work, a referral from another business unit, and are not part of an employee examination or research study may be surveyed based upon the professional judgment of the examiner with concurrence of the immediate supervisor.
Here are some instructors to consider when determining whether to survey strategic work:
Taxpayer is in bankruptcy
Taxpayer has suffered an extreme hardship or illness
Taxpayer is deceased, or
Examiner has additional information that was not available during classification
This is in the complete judgment of the IRS tax Auditor
From year to year the IRS changes their programs to keep everyone honest. However, after years of experience, a trained eye can know what tax returns will be pulled for Audit.
Why use former IRS agents for IRS tax Audit help
Being former IRS agents we know all the protocols, all the theories, all the settlement formulas and all the tax procedures the IRS will use for a IRS tax Audit.
While most tax professionals learn their IRS Audit skill during on-the-job training, former IRS agents and managers actually know the insider programs and insider secrets to successful tax Audits.
The team of tax professionals we have at fresh start tax not only were former IRS agents and managers but were former instructors with the Internal Revenue Service not only taught a local office but also taught in the district and regional IRS offices as well.
We are one of the most experienced tax firms when it comes to IRS/State tax Audit help.
If you’re got a hire a professional tax firm is wise to hire certified public accountant or former IRS agents and managers who can provide you the very best IRS tax Audit help.
There are many excellent tax firms to help you through this problem make sure you check on their experience and their Better Business Bureau rating.
Commonly Ask examinations for Audits
Q . Does the IRS ever contact a taxpayer or the tax preparer via e-mail to initiate an Audit?
A. The IRS does not contact an individual via e-mail for an initial appointment. Contact related to being selected for an Audit will be made via telephone or mail only, due to disclosure requirements.
Q. Does filing an amended return affect the return selection process?
A. Filing an amended return does not affect the selection process of the original return. However, amended returns also go through a screening process and the amended return may be selected for Audit.
Q. Why was my return selected for Audit?
A. When returns are filed, they are compared against “norms” for similar returns. The “norms” are developed from Audits of a statistically valid random sample of returns. These returns are selected as part of the National Research Program which the IRS conducts to update return selection information.
The return is next reviewed by an experienced Auditor. At this point, the return may be accepted as filed, or if based on the Auditor’s experience questionable items are noted, the agent will identify the items noted and the return is forwarded for assignment to an examining group.
Upon assignment to a group, the return is reviewed by the manager.
Items considered in assigning a case are: instructors particular to the area such as issues pertaining to construction, farming, timber industry, etc. that have specific instructors and rules that apply. Based on the review, the manager can accept the return or assign the return to an Auditor.
The assigned Auditor again reviews the return for questionable items and either accepts it as filed or contacts the taxpayer to schedule an appointment.
Q. Where will the Audit be held?
A. It depends on the type of Audit being conducted.
Audits by Mail/Correspondence Audit.
Some Audits are conducted entirely by mail. If the Audit is conducted by mail, you will receive a letter from the IRS asking for additional information about certain items shown on the tax return such as income, expenses, and itemized deductions.
In-Person Audits are Audits conducted either at a local IRS office or at your business location.
Q. Can you request the Audit be conducted at the IRS office instead of at your issue of business?
A. If the Audit has been scheduled to be conducted at your location, it will generally be conducted where the books and records are located. requests to transfer the Audit to another location, including an IRS office, will be considered but may not be granted. Treasury Regulation 301.7605-1(e), Time and issue of Audit, discusses the items considered when a request for a change in location is made.
Q. Can the Audit be transferred to another IRS office?
A. You can request a transfer of an Audit if you have moved. Several instructors will be considered such as your current location, the location of the business and where the books and records are maintained.
If the Audit is by correspondence, you can request a face-to-face Audit because the books and records may be too voluminous to mail.
Q. How long should the records related to a business or other long-term asset be kept?
A. In the case of an asset, records related to the asset should generally be kept for as long as you have the asset plus three years. If the asset was exchanged, the basis for the new asset may include the exchanged asset so the records for both assets will need to be retained until the new asset is disposed plus three years from the file date of the tax return for the year of disposition.
Q. How long should payroll records be kept?
A. In general, payroll records should be kept for six years with a review of the file to see if any items relating to current employees should be retained with current records.
Q. After an Auditor completes the Audit, will the case be reviewed to ensure the Audit results are correct?
A. All cases may be reviewed by the Auditor’s manager either during the Audit or upon completion. If errors are noted by the manager, the Auditor will contact you to advise you about the proposed correction and what impact this may have on the amount of tax due.
Q. How far back can the IRS go to Audit my return?
A. Generally, the IRS can include returns filed within the last three years in an Audit. Additional years can be added if a substantial error is identified. Generally, if a substantial error is identified, the IRS will not go back more that the last six years.
The IRS tries to Audit tax returns as soon as possible after they are filed. Accordingly most Audits will be of returns filed within the last two years.
If an Audit is for an older year, you may be requested to extend the statute of limitations for assessment of your tax return. The statute of limitations limits the time allowed to assess additional tax.
The statute of limitations is generally three years after a return is due or was filed, whichever is later. There is also a statute of limitations for making refunds.
If the Audit is not resolved and the statute of limitations date is nearing, you may be asked to extend the statute of limitations date.
This will allow you additional time to provide further documentation to support your position, request an appeal if you do not agree with the Audit results, or to claim a tax refund or credit.
It also allows the IRS time to complete the Audit and provides time to process the Audit results.
You do not have to agree to extend the statute of limitations date. However, if you do not agree, the examiner will be forced to make a determination based upon the information they currently have.
Therefore, the examiner may not be able to consider additional adjustments, such as expenses, that could lower the amount of tax due.
Call us today for a free initial tax consultation and speak to Experts.
Experts IRS & Sales Tax Audit Tax Defense, Representation and Appeals + Hillsborough County, Tampa, St. Petersburg, Largo
by Fresh Start Tax | May 15, 2018 | Tax Help
We are an “Affordable professional Tax Firm” that specializes in IRS and State tax debt help on back taxes. 1-866-700-1040
Hear the Truth about your Taxes Now, We Know The system. We are a Florida Tax Firm.
We are former IRS Agents & Managers who know the system, since 1982.
We have over 95 years of IRS work experience.
Owe IRS Back Taxes + individual, Business, Payroll Taxes + Haven’t Filed Tax Returns + settle IRS DEBT + Hillsborough County, Tampa, St. Petersburg, Largo
We worked out of the IRS offices as managers, supervisors, and teaching instructors . We were also on the job instructors for new IRS agents.
Call us today for a free initial consultation and hear the truth about any tax problem you are currently having.
We have been in private practice since 1982 and are true Affordable tax Experts in resolving individual, business and payroll taxes debt.
If you owe the Internal Revenue Service back taxes or back tax debt, it only makes sense to hire former IRS agents and managers who know the system inside and out. We can review with you all the tax examinations and solutions to reduce your tax debt or tax bill.
We understand all the protocols and systems to Affordable and swiftly deal with any IRS tax issue so we can reduce and resolve your IRS or State Tax Problem.
We can help anyone who owes any federal, State, individual, business, or payroll taxes including those who have not filed back tax returns and those wishing to settle IRS tax debt.
If you Haven’t Filed Back Tax Returns
If you have not file tax returns, our former IRS agents can prepare your back tax returns with little or no records and settle your tax debt at all at the same time.
Make sure you file your back tax returns because IRS enjoys the privilege of filing your back tax returns under 6020 B of the code if you fail to file back taxes. What this means is that IRS can prepare a substitute for return, SFR.
They will file your return to make sure you pay the highest amount allowed by law. If this is happened to you, you can file for an IRS Audit reconsideration.
IRS Required financials Statements on cases involving Tax Debt
If you owe back taxes and as a general rule your financial statement will determine how IRS will close your settle your case. Form 433F. The completion of your financial statement is one of the keys to deal with the Internal Revenue Service.
If you owe individual, business or payroll taxes, we will take a current financial statement contact the IRS and work out an Affordable individual or business payment plan and/or file and settle the tax if applicable.
It is critical that you understand the importance of your current financial statement because it will determine the outcome of your case.
Your last 3 to 6 months of your financial condition is IRS’s determining factor on your case resolution.
Most cases in which back tax debt is owed to Internal Revenue Service will require a current and verifiable financial statement. Generally on forms 433F or 433A.
You can find those financial statements directly on our website.
When you call us we will give you the financial statement applicable to your case.
As a general rule, when taxpayers or businesses owe back individual or payroll taxes, IRS closes case out by putting them into hardships, asking for payments or the settlement through the offer in compromise.
These are the three most common ways that IRS close cases off their enforcement computer.
1.40% go into a currently not collectible or hardship,
2. 6.5 million people get put into payment plans and,
3. 40,000 people get offers in compromise accepted.
We will explore every option and can get you the very best possible tax settlement .
Please keep in mind IRS is a general statute of limitations on 10 years on all collection cases. Certain exemptions exist.
Since 1982 we have been resolving IRS tax debt for individuals, businesses and corporate that owe back federal taxes including payroll tax debt.
Call us today for a free initial tax consultation. Speak to true tax Experts. 1-866-700-1040
So if you need help on IRS tax debt call us today and we will find solutions on how to deal with your back tax debt problems.
Call, 1-866-700-1040
by Fresh Start Tax | May 15, 2018 | Tax Help
IRS & Sales Tax Audit help – Have Former IRS Managers & Agents defend your Federal or State Tax Audit, We Know the system 954-492-0088
We have 205 years of direct tax experience, 95 years of working for the IRS in the local, district and regional offices. Being former IRS agent managers and supervisors in the Audit division gives us a unique advantage & can change the result of an IRS tax Audit.
We know the settlement techniques and formulas to save your money.
Be worry free, call us today.
It only makes sense to have Former IRS Agents and IRS Tax Audit Managers handle your IRS tax Audit and give you the most experienced and successful IRS Tax Audit help.
Facts about IRS Tax Audits:
The IRS Audits a total of 1,391,581 tax returns a year.
The IRS field agents complete more that 310,000 Audits by office or business visits a year.
The IRS completes over 1,081,152 correspondence Audits a year.
IRS has installed new software tracking systems with the development of the CADE 2 computer to spot and recognize tax Audits more proficiently
IRS collected over $10 billion dollars a year from IRS tax Audits.
IRS employs over 13,000 IRS Auditors.
$5.2 billion dollars are collected through the IRS document matching program.
* numbers vary from year to year
IRS Policy Statement P-4-21. It states “The primary objective in selecting returns for examination is to promote the highest degree of voluntary compliance on the part of taxpayers.”
The IRS Tax Audit Examination Plan
The plan that is used by the IRS is based on long range coverage planning, and objectives on the resources requested in the Congressional Budget. From this, there is an established plan where staff years are allocated to all area IRS offices using resource allocation and a prescribed methodology.
Each Area Manager of the IRS is responsible for preparing an area response following instructors from the National Headquarters.
Staffing for the IRS Tax Audit
Staffing is based on the examination priorities that differs from office to office and region to region, front loaded programs set up before hand, historic examination rates adjusted to yield sure ended results and Audits that match experience of the personnel.
Each region is excepted to produce tax Audits and money from tax Audits. IRS is funded thru results.
Why the IRS/Sales Audits Tax Returns
a. Front Loaded Programs
Front Loaded programs are those tax Audits that IRS DC headquarters has determined are very important and a considerable amount of time must be spent on e programs and activities. Each area has discussions within management as to what the programs should be for each region, district, and office.
Some of the programs are:
Special enforcement programs – An example of this may be compliance of all flee market vendors, a program I was involved with
High Income non-filers – The IRS would get their information from a match program of w-2’s and 1099’s and match up social security numbers against filed returns
Abusive Tax Avoidance – This could be in the area of offshore activities
Offshore credit card program
National Research programs – Those set forth by management after doing a trends project
FBAR filing – IRS is currently targeting those with overseas bank accounts
Non- filers – IRS is presently forming a task force to seek non-filers though aggressive means.
b. The IRS makes sure there is balanced coverage.
The National Office makes sure there is a balanced approach for Audit return delivery and tax compliance. Resources and inventory and the size of personnel all go into this formula. The focus is blended into e areas:
individual returns less that $100,000.
individual returns greater that $100,000 but less that $200,000.
individual returns greater that $ 200,000.
Small Business Corporation.
Small Business Flow-Through Entities – S Corporation, Fiduciaries and Partnerships.
c. Classification Plan
The IRS will prepare a plan, which is classified. A National DIF score indicator is issue on all Federal Income tax returns that are filed.
Each tax return has certain instructors that contribute to its score such as Gross Income, Adjusted Gross Income and line item expense.
There are several classified secrets that go into the DIF score.
Each tax return is processed through the IRS computer line item by line item.
A DIF score label is issue on every tax return with its DIF number. A tax examiner or Revenue Agent manually eyeballs each and every tax return with a high DIF score. The examiner then determine which return has the highest probability of tax Audit success.
d. DIF Cutoff Score
The IRS will calculate the Area DIF cutoff score for each activity code, giving consideration to the selection rate. This is the lowest DIF score necessary to secure the number of returns required for Audit.
For example, if the return plan shows 225 returns for an activity code and the selection rate is 70%, the IRS will need to order 321 returns (225/70%).
The DIF Cut off Score is 500. The number of returns with DIF scores greater that 550 is 280, which is less that the number of returns required, so the lowest DIF score on an ordered return will be in the range of 500 to 550 and the DIF cutoff score is 500. This is the IRS example as found in the IRS IRM section 4.
e. Where your case is worked
Examination inventory is assigned to IRS offices based on ZIP codes, using the Look up Tables at Martinsburg Computing Center.
f. High Assault Risk Areas
Certain ZIP code areas are identified as High Assault Risk Areas. There are special instructors the IRS has regarding e Audits. These returns will be Audited.
Survey of Examination Cases. The IRS can look over your case and close it with an eyeball look.
While cases should be selected and started in accordance with all guidelines, in a limited number of circumstances, there may be returns that appear in the “judgment of the examiner and manager” to warrant survey without taxpayer contact. That is to not even contact the taxpayer.
Cases delivered to the IRS area manager will generally fall into one of three categories: mandatory work, strategic (priority program) work, and non-strategic work.
Mandatory work includes nationally-coordinated research projects such as NRP and employee Audits (excludes “new” IRS employee Audits)
Strategic work is identified annually in the Exam Program Letter which can be found at http://sbse.web.irs.gov/Exam/.
The procedures to survey strategic work and referrals from other business units, “new” employee Audits and cases with previous taxpayer contact require an explanation for the rationale for the survey.
Cases that are not mandatory work, strategic work, a referral from another business unit, and are not part of an employee examination or research study may be surveyed based upon the professional judgment of the examiner with concurrence of the immediate supervisor.
Here are some instructors to consider when determining whether to survey strategic work:
Taxpayer is in bankruptcy
Taxpayer has suffered an extreme hardship or illness
Taxpayer is deceased, or
Examiner has additional information that was not available during classification
This is in the complete judgment of the IRS tax Auditor
From year to year the IRS changes their programs to keep everyone honest. However, after years of experience, a trained eye can know what tax returns will be pulled for Audit.
Why use former IRS agents for IRS tax Audit help
Being former IRS agents we know all the protocols, all the theories, all the settlement formulas and all the tax procedures the IRS will use for a IRS tax Audit.
While most tax professionals learn their IRS Audit skill during on-the-job training, former IRS agents and managers actually know the insider programs and insider secrets to successful tax Audits.
The team of tax professionals we have at fresh start tax not only were former IRS agents and managers but were former instructors with the Internal Revenue Service not only taught a local office but also taught in the district and regional IRS offices as well.
We are one of the most experienced tax firms when it comes to IRS/State tax Audit help.
If you’re got a hire a professional tax firm is wise to hire certified public accountant or former IRS agents and managers who can provide you the very best IRS tax Audit help.
There are many excellent tax firms to help you through this problem make sure you check on their experience and their Better Business Bureau rating.
Commonly Ask examinations
Q . Does the IRS ever contact a taxpayer or the tax preparer via e-mail to initiate an Audit?
A. The IRS does not contact an individual via e-mail for an initial appointment. Contact related to being selected for an Audit will be made via telephone or mail only, due to disclosure requirements.
Q. Does filing an amended return affect the return selection process?
A. Filing an amended return does not affect the selection process of the original return. However, amended returns also go through a screening process and the amended return may be selected for Audit.
Q. Why was my return selected for Audit?
A. When returns are filed, they are compared against “norms” for similar returns. The “norms” are developed from Audits of a statistically valid random sample of returns. These returns are selected as part of the National Research Program which the IRS conducts to update return selection information.
The return is next reviewed by an experienced Auditor. At this point, the return may be accepted as filed, or if based on the Auditor’s experience questionable items are noted, the agent will identify the items noted and the return is forwarded for assignment to an examining group.
Upon assignment to a group, the return is reviewed by the manager.
Items considered in assigning a case are: instructors particular to the area such as issues pertaining to construction, farming, timber industry, etc. that have specific instructors and rules that apply. Based on the review, the manager can accept the return or assign the return to an Auditor.
The assigned Auditor again reviews the return for questionable items and either accepts it as filed or contacts the taxpayer to schedule an appointment.
Q. Where will the Audit be held?
A. It depends on the type of Audit being conducted.
Audits by Mail/Correspondence Audit.
Some Audits are conducted entirely by mail. If the Audit is conducted by mail, you will receive a letter from the IRS asking for additional information about certain items shown on the tax return such as income, expenses, and itemized deductions.
In-Person Audits are Audits conducted either at a local IRS office or at your business location.
Q. Can you request the Audit be conducted at the IRS office instead of at your issue of business?
A. If the Audit has been scheduled to be conducted at your location, it will generally be conducted where the books and records are located. requests to transfer the Audit to another location, including an IRS office, will be considered but may not be granted. Treasury Regulation 301.7605-1(e), Time and issue of Audit, discusses the items considered when a request for a change in location is made.
Q. Can the Audit be transferred to another IRS office?
A. You can request a transfer of an Audit if you have moved. Several instructors will be considered such as your current location, the location of the business and where the books and records are maintained.
If the Audit is by correspondence, you can request a face-to-face Audit because the books and records may be too voluminous to mail.
Q. How long should the records related to a business or other long-term asset be kept?
A. In the case of an asset, records related to the asset should generally be kept for as long as you have the asset plus three years. If the asset was exchanged, the basis for the new asset may include the exchanged asset so the records for both assets will need to be retained until the new asset is disposed plus three years from the file date of the tax return for the year of disposition.
Q. How long should payroll records be kept?
A. In general, payroll records should be kept for six years with a review of the file to see if any items relating to current employees should be retained with current records.
Q. After an Auditor completes the Audit, will the case be reviewed to ensure the Audit results are correct?
A. All cases may be reviewed by the Auditor’s manager either during the Audit or upon completion. If errors are noted by the manager, the Auditor will contact you to advise you about the proposed correction and what impact this may have on the amount of tax due.
Q. How far back can the IRS go to Audit my return?
A. Generally, the IRS can include returns filed within the last three years in an Audit. Additional years can be added if a substantial error is identified. Generally, if a substantial error is identified, the IRS will not go back more that the last six years.
The IRS tries to Audit tax returns as soon as possible after they are filed. Accordingly most Audits will be of returns filed within the last two years.
If an Audit is for an older year, you may be requested to extend the statute of limitations for assessment of your tax return. The statute of limitations limits the time allowed to assess additional tax.
The statute of limitations is generally three years after a return is due or was filed, whichever is later. There is also a statute of limitations for making refunds.
If the Audit is not resolved and the statute of limitations date is nearing, you may be asked to extend the statute of limitations date.
This will allow you additional time to provide further documentation to support your position, request an appeal if you do not agree with the Audit results, or to claim a tax refund or credit.
It also allows the IRS time to complete the Audit and provides time to process the Audit results.
You do not have to agree to extend the statute of limitations date. However, if you do not agree, the examiner will be forced to make a determination based upon the information they currently have.
Therefore, the examiner may not be able to consider additional adjustments, such as expenses, that could lower the amount of tax due.
IRS & Sales Tax Audit Tax Defense and Appeals + MIAMI BEACH, CORAL GABLES, KEY BISCAYNE, PINECREST + Dade County = 954-492-0088
by Fresh Start Tax | May 15, 2018 | Tax Help
IRS & Sales Tax Audit help – Have Former IRS Managers & Agents defend your Federal or State Tax Audit, We Know the system
We have 205 years of direct tax experience, 60 years of working for the IRS in the local, district and regional offices. Being former IRS agent managers and supervisors in the Audit division gives us a unique advantage & can change the result of an IRS tax Audit.
We know the settlement techniques and formulas to save your money.
Be worry free, call us today.
It only makes sense to have Former IRS Agents and IRS Tax Audit Managers handle your IRS tax Audit and give you the most experienced and successful IRS Tax Audit help.
Facts about IRS Tax Audits:
The IRS Audits a total of 1,391,581 tax returns a year.
The IRS field agents complete more that 310,000 Audits by office or business visits a year.
The IRS completes over 1,081,152 correspondence Audits a year.
IRS has installed new software tracking systems with the development of the CADE 2 computer to spot and recognize tax Audits more proficiently
IRS collected over $10 billion dollars a year from IRS tax Audits.
IRS employs over 13,000 IRS Auditors.
$5.2 billion dollars are collected through the IRS document matching program.
* numbers vary from year to year
IRS Policy Statement P-4-21. It states “The primary objective in selecting returns for examination is to promote the highest degree of voluntary compliance on the part of taxpayers.”
The IRS Tax Audit Examination Plan
The plan that is used by the IRS is based on long range coverage planning, and objectives on the resources requested in the Congressional Budget. From this, there is an established plan where staff years are allocated to all area IRS offices using resource allocation and a prescribed methodology. Each Area Manager of the IRS is responsible for preparing an area response following instructors from the National Headquarters.
Staffing for the IRS Tax Audit
Staffing is based on the examination priorities that differs from office to office and region to region, front loaded programs set up before hand, historic examination rates adjusted to yield sure ended results and Audits that match experience of the personnel. Each region is excepted to produce tax Audits and money from tax Audits. IRS is funded thru results.
Why the IRS/Sales Audits Tax Returns
a. Front Loaded Programs
Front Loaded programs are those tax Audits that IRS DC headquarters has determined are very important and a considerable amount of time must be spent on e programs and activities. Each area has discussions within management as to what the programs should be for each region, district, and office.
Some of the programs are:
Special enforcement programs – An example of this may be compliance of all flee market vendors, a program I was involved with
High Income non-filers – The IRS would get their information from a match program of w-2’s and 1099’s and match up social security numbers against filed returns
Abusive Tax Avoidance – This could be in the area of offshore activities
Offshore credit card program
National Research programs – Those set forth by management after doing a trends project
FBAR filing – IRS is currently targeting those with overseas bank accounts
Non- filers – IRS is presently forming a task force to seek non-filers though aggressive means.
b. The IRS makes sure there is balanced coverage.
The National Office makes sure there is a balanced approach for Audit return delivery and tax compliance. Resources and inventory and the size of personnel all go into this formula. The focus is blended into e areas:
individual returns less that $100,000.
individual returns greater that $100,000 but less that $200,000.
individual returns greater that $ 200,000.
Small Business Corporation.
Small Business Flow-Through Entities – S Corporation, Fiduciaries and Partnerships.
c. Classification Plan
The IRS will prepare a plan, which is classified. A National DIF score indicator is issue on all Federal Income tax returns that are filed. Each tax return has certain instructors that contribute to its score such as Gross Income, Adjusted Gross Income and line item expense.
There are several classified secrets that go into the DIF score.
Each tax return is processed through the IRS computer line item by line item.
A DIF score label is issue on every tax return with its DIF number. A tax examiner or Revenue Agent manually eyeballs each and every tax return with a high DIF score. The examiner then determine which return has the highest probability of tax Audit success.
d. DIF Cutoff Score
The IRS will calculate the Area DIF cutoff score for each activity code, giving consideration to the selection rate. This is the lowest DIF score necessary to secure the number of returns required for Audit. For example, if the return plan shows 225 returns for an activity code and the selection rate is 70%, the IRS will need to order 321 returns (225/70%).
The DIF Cut off Score is 500. The number of returns with DIF scores greater that 550 is 280, which is less that the number of returns required, so the lowest DIF score on an ordered return will be in the range of 500 to 550 and the DIF cutoff score is 500. This is the IRS example as found in the IRS IRM section 4.
e. Where your case is worked
Examination inventory is assigned to IRS offices based on ZIP codes, using the Look up Tables at Martinsburg Computing Center.
f. High Assault Risk Areas
Certain ZIP code areas are identified as High Assault Risk Areas. There are special instructors the IRS has regarding e Audits. These returns will be Audited.
Survey of Examination Cases. The IRS can look over your case and close it with an eyeball look.
While cases should be selected and started in accordance with all guidelines, in a limited number of circumstances, there may be returns that appear in the “judgment of the examiner and manager” to warrant survey without taxpayer contact. That is to not even contact the taxpayer.
Cases delivered to the IRS area manager will generally fall into one of three categories: mandatory work, strategic (priority program) work, and non-strategic work.
Mandatory work includes nationally-coordinated research projects such as NRP and employee Audits (excludes “new” IRS employee Audits)
Strategic work is identified annually in the Exam Program Letter which can be found at http://sbse.web.irs.gov/Exam/. The procedures to survey strategic work and referrals from other business units, “new” employee Audits and cases with previous taxpayer contact require an explanation for the rationale for the survey.
Cases that are not mandatory work, strategic work, a referral from another business unit, and are not part of an employee examination or research study may be surveyed based upon the professional judgment of the examiner with concurrence of the immediate supervisor.
Here are some instructors to consider when determining whether to survey strategic work:
Taxpayer is in bankruptcy
Taxpayer has suffered an extreme hardship or illness
Taxpayer is deceased, or
Examiner has additional information that was not available during classification
This is in the complete judgment of the IRS tax Auditor
From year to year the IRS changes their programs to keep everyone honest. However, after years of experience, a trained eye can know what tax returns will be pulled for Audit.
Why use former IRS agents for IRS tax Audit help
Being former IRS agents we know all the protocols, all the theories, all the settlement formulas and all the tax procedures the IRS will use for a IRS tax Audit.
While most tax professionals learn their IRS Audit skill during on-the-job training, former IRS agents and managers actually know the insider programs and insider secrets to successful tax Audits.
The team of tax professionals we have at fresh start tax not only were former IRS agents and managers but were former instructors with the Internal Revenue Service not only taught a local office but also taught in the district and regional IRS offices as well.
We are one of the most experienced tax firms when it comes to IRS/State tax Audit help.
If you’re got a hire a professional tax firm is wise to hire certified public accountant or former IRS agents and managers who can provide you the very best IRS tax Audit help. There are many excellent tax firms to help you through this problem make sure you check on their experience and their Better Business Bureau rating.
Commonly Ask examinations
Q . Does the IRS ever contact a taxpayer or the tax preparer via e-mail to initiate an Audit?
A. The IRS does not contact an individual via e-mail for an initial appointment. Contact related to being selected for an Audit will be made via telephone or mail only, due to disclosure requirements.
Q. Does filing an amended return affect the return selection process?
A. Filing an amended return does not affect the selection process of the original return. However, amended returns also go through a screening process and the amended return may be selected for Audit.
Q. Why was my return selected for Audit?
A. When returns are filed, they are compared against “norms” for similar returns. The “norms” are developed from Audits of a statistically valid random sample of returns. These returns are selected as part of the National Research Program which the IRS conducts to update return selection information.
The return is next reviewed by an experienced Auditor. At this point, the return may be accepted as filed, or if based on the Auditor’s experience questionable items are noted, the agent will identify the items noted and the return is forwarded for assignment to an examining group.
Upon assignment to a group, the return is reviewed by the manager.
Items considered in assigning a case are: instructors particular to the area such as issues pertaining to construction, farming, timber industry, etc. that have specific instructors and rules that apply. Based on the review, the manager can accept the return or assign the return to an Auditor.
The assigned Auditor again reviews the return for questionable items and either accepts it as filed or contacts the taxpayer to schedule an appointment.
Q. Where will the Audit be held?
A. It depends on the type of Audit being conducted.
Audits by Mail/Correspondence Audit.
Some Audits are conducted entirely by mail. If the Audit is conducted by mail, you will receive a letter from the IRS asking for additional information about certain items shown on the tax return such as income, expenses, and itemized deductions.
In-Person Audits are Audits conducted either at a local IRS office or at your business location.
Q. Can you request the Audit be conducted at the IRS office instead of at your issue of business?
A. If the Audit has been scheduled to be conducted at your location, it will generally be conducted where the books and records are located. requests to transfer the Audit to another location, including an IRS office, will be considered but may not be granted. Treasury Regulation 301.7605-1(e), Time and issue of Audit, discusses the items considered when a request for a change in location is made.
Q. Can the Audit be transferred to another IRS office?
A. You can request a transfer of an Audit if you have moved. Several instructors will be considered such as your current location, the location of the business and where the books and records are maintained.
If the Audit is by correspondence, you can request a face-to-face Audit because the books and records may be too voluminous to mail.
Q. How long should the records related to a business or other long-term asset be kept?
A. In the case of an asset, records related to the asset should generally be kept for as long as you have the asset plus three years. If the asset was exchanged, the basis for the new asset may include the exchanged asset so the records for both assets will need to be retained until the new asset is disposed plus three years from the file date of the tax return for the year of disposition.
Q. How long should payroll records be kept?
A. In general, payroll records should be kept for six years with a review of the file to see if any items relating to current employees should be retained with current records.
Q. After an Auditor completes the Audit, will the case be reviewed to ensure the Audit results are correct?
A. All cases may be reviewed by the Auditor’s manager either during the Audit or upon completion. If errors are noted by the manager, the Auditor will contact you to advise you about the proposed correction and what impact this may have on the amount of tax due.
Q. How far back can the IRS go to Audit my return?
A. Generally, the IRS can include returns filed within the last three years in an Audit. Additional years can be added if a substantial error is identified. Generally, if a substantial error is identified, the IRS will not go back more that the last six years.
The IRS tries to Audit tax returns as soon as possible after they are filed. Accordingly most Audits will be of returns filed within the last two years.
If an Audit is for an older year, you may be requested to extend the statute of limitations for assessment of your tax return. The statute of limitations limits the time allowed to assess additional tax.
The statute of limitations is generally three years after a return is due or was filed, whichever is later. There is also a statute of limitations for making refunds.
If the Audit is not resolved and the statute of limitations date is nearing, you may be asked to extend the statute of limitations date.
This will allow you additional time to provide further documentation to support your position, request an appeal if you do not agree with the Audit results, or to claim a tax refund or credit. It also allows the IRS time to complete the Audit and provides time to process the Audit results.
You do not have to agree to extend the statute of limitations date. However, if you do not agree, the examiner will be forced to make a determination based upon the information they currently have.
Therefore, the examiner may not be able to consider additional adjustments, such as expenses, that could lower the amount of tax due.
IRS & Sales Tax Audit Tax Defense and Appeals + MIAMI BEACH, CORAL GABLES, KEY BISCAYNE, PINECREST + Dade County
