by Fresh Start Tax | Jan 30, 2014 | Tax Help
We are the Affordable Tax Experts.
We are professional tax firm located in the state of Florida that has been practicing since tax resolution since 1982.
We are the affordable tax experts.
We were A+ rated by the Better Business Bureau and we have over 206 years of professional tax experience.
If you are undergoing an IRS tax audit, need back tax help, or considering in IRS tax settlement contact one of our tax professionals today and we can go over the various options and remedies to immediately and permanently resolve your state or federal tax problems.
Our firm is comprised of tax attorneys, certified public accountants, enrolled agents, and former IRS and state tax agents.
Our staff is accumulative 76 years of IRS and state tax experience in the local, district, and regional tax offices.
We handle all back and unfiled tax returns and work out an IRS tax settlement called an offer in compromise should you owe back taxes to the IRS.
Being former IRS agents and managers we understand all the protocols and settlement used by Internal Revenue Service to ensure the lowest possible tax settlement.
Which Issues does IRS look at for Audit Tax Returns
1. High incomes.
Your chance of being audited substantially increases once your income crosses $200,000, according to a recent IRS report on its enforcement activity.
2. Large itemized deductions.
Deduct every penny you’re entitled to but you must realize that if your itemized tax deductions are bigger than the IRS’ target range for people at your income level, your return may get a second look.
3. Home offices deductions.
You can only take a home office deduction if you meet all of the qualifications, including regularly and exclusively using part of your home as your principal place of business. For example, if your office doubles as the kids’ playroom, you’re generally unable to deduct it.
4. Missing investment income.
You know the IRS Form 1099 that financial services companies send you that summarizes your interest and dividends for the year? The IRS also gets that information. Make sure your return properly includes this information.
5. Business losses.
Remember your tax return must make sense. If your business loss seems out of proportion to you it probably is in the same way out of proportion to Internal Revenue Service. remember that irises can compare your tax return to others in their computer programs are set up to kick out audits that fall out of the norms.
6. Charitable deductions.
You’ll need a canceled check or dated receipt for any cash contributions, and contributions of $250 or more require written acknowledgement from the charity. If you made a non-cash contribution valued at more than $5,000, you’ll need an expert appraisal to back up your claim.
7. Medical expenses.
If you’re 64 or younger, you can deduct these costs only to the extent they’re greater than 10% of your adjusted gross income. It’s important to keep detailed records.
Beware – you cannot deduct the cost of over the counter medicine, health club dues or most cosmetic surgeries. Nice try.
8. Unreported Foreign Income
The Internal Revenue Service has made it their mission to go after overseas money belonging to taxpayers that have hidden it offshore.
If you have unreported foreign income and need to file an Fbar report. call and speak directly your tax attorneys today.
9. The DIF Audit
Be aware that every tax return filed is graded and scored by the Internal Revenue Service. If your tax return falls out of the norms and standards used by the Internal Revenue Service they will take a much closer look to find out whether your tax return is audit worthy.
Contact us today for free initial tax consultation.
by Fresh Start Tax | Jan 30, 2014 | Tax Help
State of Florida Sales Tax Audit
We are a team of tax professionals who can represent your best interest during a state of Florida tax audit and save you money.
We are the Affordable professional tax firm.
Our firm is comprised of tax attorneys, certified public accountants, enrolled agents, former IRS agents and most importantly former sales tax auditor.
The firm has over 206 years of professional tax experience in over 76 years of working directly for the Internal Revenue Service and the state of Florida Department of revenue, Sales Tax Division.
You can call us today for a free initial tax consultation.
We have been in private practice since 1982 and we are A+ rated by the Better Business Bureau.
Why Are Taxpayers Audited by the State of Florida, Department of Revenue.
The State of Florida audit taxpayers to:
- Enforce Florida tax laws uniformly.
- Promote voluntary compliance.
While the State accepts most tax returns as filed, we audit some returns to verify accuracy and evaluate compliance.
Sales Tax Audits do not always result in the taxpayer owing additional tax, penalty or interest.
The auditor may adjust a credit carryover or correct distribution without assessing additional tax.
The auditor may even determine that a refund is due.
How Are Taxpayers Selected for Audit?
The methods for selecting a business or individual to audit vary from tax to tax. Here are some examples of sources we use to identify a potential audit candidate:
- Internal Revenue Service information.
- Information sharing programs with other states and state agencies.
- Computer-based random selection.
- Analysis of Florida tax return information.
- Business publications, periodicals, journals, and directories.
- Many times individuals and businesses and corporations are turned in by third parties or ex-employees.
What Types of Records Will I Need to Provide?
The types of records may include, but are not limited to:
- General ledgers and journals
- Cash receipt and disbursement journals
- Purchase and sales journals
- Sales tax exemption or resale certificates
- Any other records that the sales tax auditor may want or discovered during the course of the sales tax audit.
Record Keeping
You must keep your records for three years since an audit can extend back that far.
The Department may audit for periods longer than three years if you did not file, or filed a substantially incorrect return or payment.
State of Florida Tax Audit – Attorneys, CPA’s, Former Agents – 1-866-700-1040 – Sales Tax Experts
by Fresh Start Tax | Jan 30, 2014 | Tax Help
We are one of Florida’s premier and expert tax firms for IRS and State audit help, defense and federal and state tax representation.
If you will wind up owing money we will recommend different settlement solutions.
We have over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the Internal Revenue Service.
Also on staff is a former sales tax auditor with 16 years direct experience working for the state of Florida Department of revenue.
We cover the entire state of Florida and have been doing so since 1982.
We are A+ rated by the Better Business Bureau.
IRS Tax Audit Selection
Selecting a tax return for audit does not always suggest that an error has been made. Returns are selected using a variety of methods, including:
- Random selection and computer screening – sometimes returns are selected based solely on a statistical formula.
- Document matching – when payor records, such as Forms W-2 or Form 1099, don’t match the information reported.
- Related examinations – returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit.
IRS Audit Methods
An audit may be conducted by mail or through an in-person interview and review of the taxpayer’s records. The interview may be at an IRS office (office audit) or at the taxpayer’s home, place of business, or accountant’s office (field audit).
The IRS will tell you what records are needed. Audits can result in no changes or changes. Any proposed changes to your return will be explained.
IRS Audit Help, Defense, Representation – Former IRS – Marco, Naples, Sannibel, Captiva – State Sales Tax Help – Florida
by Fresh Start Tax | Jan 30, 2014 | Tax Help
Which 1040 Tax Form Should You File
Which form should you use to file your federal income taxes?
Most people use a computer to prepare and e-file their tax forms.
It’s easy, because tax software selects the right form for you.
If you file on paper, you’ll need to pick the right form to use.
It has free tax software or a Fillable Forms option that allows you to fill in your tax forms using a computer.
You can e-file the completed forms for free!
If you still prefer paper and pen, here are some tips on how to choose the best form for your situation.
You can generally use the 1040EZ if:
1. Your taxable income is below $100,000;
2. Your filing status is single or married filing jointly;
3. You are not claiming any dependents; and
4. Your interest income is $1,500 or less.
5. The 1040A may be best for you if:
Your taxable income is below $100,000;
You have capital gain distributions;
You claim certain tax credits; and
You claim adjustments to income for IRA contributions and student loan interest.
However, reasons you must use the 1040 include:
Your taxable income is $100,000 or more;
You claim itemized deductions;
You are reporting self-employment income; or
You are reporting income from sale of a property.
Read more about which form to use in IRS Publication 17, Your Federal Income Tax. The quickest way to get tax forms and instructions is to visit IRS.gov and click on the ‘Forms & Pubs’ tab.
New tax forms often appear online well before the printed forms are available.
You can also have forms mailed to you by calling the IRS at 800-TAX-FORM (800-829-3676), or you can pick them up at a local IRS office. Some libraries and post offices also have tax forms.
by Fresh Start Tax | Jan 29, 2014 | Tax Help
Looking for Affordable Tax Professionals to handle a Florida Sales Tax Audit.
Call out team for a no cost professional consult. 1-866-700-1040
We are A+ rated by the Better Business Bureau and have been in private practice in the state of Florida since 1982.
Florida Sales Tax Audit – State of Florida Expert
You must file a tax return even if you do not owe tax.The state of Florida Department of revenue sales tax division is starting to crack down on those people who are failing to file, under report and not paying their fair share to the Florida Department of revenue.
Many people are unaware that you may be arrested if you do not file and pay your tax. Florida to unlike the federal government is much quicker to get the criminal investigation unit involved when sales taxes not paid. Make sure this does not happen to you.
As a recent example -Arrest in Florida sales tax case:
Broward County Restaurant Owner Arrested (name omitted), the owner of El Bohio De Mama. Inc, a Restaurant located in Margate, Florida, has been arrested on charges that she stole more than $14,000 in sales tax he collected from customers, but failed to send it into the state.
The owner, who lives in Coral Springs, was arrested by the Broward County Sheriff’s office on January 6, 2014 on a felony and misdemeanor charge relating to theft of state funds.
If convicted, she faces up to 5 years in prison and up to $5,000 in fines, as well as a possible payment of penalty and investigative costs.
According to the Florida Department of revenue investigators, tax was collected at the restaurant. However, during various periods beginning in 2011 and, lasting through periods in 2013 she failed to send in to the state all of the sales tax that were collected and failed to file sales tax returns as required by law.
Insider Tips Florida Sales Tax Tips
Our Former Florida Sales Tax Auditor will keep you posted of updates in Florida Sales Tax through:
1. Technical Assistance Advisement’s (TAA’s)
2. Court Cases
3. Tax Information Publications (TIP’s)
4. Legislative Changes
5. Current Events published in the News Media
File your tax returns on time and avoid the temptation of keeping the cash flow in your business and remember that the tax collected is the property of the state of Florida and they will prosecute you are caught owing back taxes.
Failure to file Florida sales tax returns can get you arrested, Get representation
If you owe back Florida sales tax you should be aware that you could be arrested.
We are not telling you this to scare you, but understand, Florida Department of revenue actively pursues individuals, companies and businesses who flatly fail to pay back sales tax.
They use taxpayers as examples for others to be compliant with Florida sales tax laws. Don’t let this happen to you.
Make sure you are represented and work out a payment plan or arrangement so that you can live without stress.
Florida business owners are not aware of the fact Florida Department of revenue is more likely to arrest a business owner for tax fraud than the Internal Revenue Service.
While both the IRS and the Florida Department of revenue will put tax liens on the business property, the Florida Department of revenue will also put the business owner in jail if the taxes all the associated penalties, interest, fines and costs are not remitted.
If you have been under reporting or not reporting and you have not received a notice of audit, it is highly recommended that you contact our firm and we will assist your business on the details of going through a voluntary disclosure program to come clean with the Florida Department of revenue, and have most of the penalties waived and prevent it from becoming criminal.
Florida Sales Tax Defensive
We are a full-service tax firm that specializes in federal and state tax representation and are one of Florida’s most experienced for sales tax audit defense.
Our staff consists of tax attorneys, certified public accountants, former IRS agents and a former sales tax auditor with over 16 years of direct work experience with the Florida Department of revenue.
Feel free to contact us for initial tax consulting for Florida sales tax audit defense.
We will completely review your case and give you a full assessment of your sales tax status so that you can make an informed and confident decision on how to fully resolve your sales tax issues.
Florida Sales Tax Audit News – State of Florida Expert
by Fresh Start Tax | Jan 23, 2014 | Tax Help
We are professional tax firm located in South Florida who are Affordable Tax Experts who specialize in IRS tax matters, tax audits and problems. 954-492-0088 We Know the System!
We are comprised of tax attorneys, certified public accountants, and former IRS agents.
We have over 60 years of working directly for the Internal Revenue Service and the local IRS offices.
We are A plus rated by the BBB and have practiced in South Florida since 1982.
Received a IRS Audit notice for Back Taxes
If you receive a IRS tax notice that the IRS is auditing your personal or business tax returns, talk to a true tax professional at FST.
If your income or business tax return has been selected for audit it does not mean you did anything wrong.
There are a number of reason your tax return was flagged for a tax audit.
Why was your tax return pulled?
IRS runs a number of audit programs.
Each tax return that is filed goes to a IRS service center where it is graded by the IRS computer system. Each tax return has a numerical score put on there by the computer called a DIF score.
The DIF score will determine your placement of your tax return against other tax returns filed with your given AGI and deductions. Those tax returns that fall out of the national norm are then given to a group of reviewing agents that determine whether your tax return is audit worthy.
From there the tax returns are sent to the field offices where group managers review the potential audits and gives them to the tax auditors depending on case inventory and ability to handle the tax audit.
This is a very smooth process that has been running for many years
The scoring system looks at some of the following areas:
- High business use of autos
- Number of autos used in business
- High travel and entertainment
- Little or no profit from business operations
You can ask the IRS Agent why your tax return was chosen for a tax audit
It is okay to ask why your return was selected for audit or why you were singled out.
The IRS has the option to tell you or they can withhold. Many times if you were picked for an IRS audit because somebody has given IRS information about you, the IRS will withhold reasons for your tax audit.
Kinds Of Income Tax Audits
There are four basic kinds of IRS audits.
1. Correspondence Audit.
It is a letter from the IRS Service Center requesting that you send in copies of your canceled checks and receipts in order to verify certain deductions on the return.
This type of audit is reserved for small, simple tax returns.
The Internal Revenue Service conducts 1.1 million audits as a result of correspondence audits each and every year as a result of these correspondence audits the IRS collects a smooth $10 billion.
2. Office audit.
Will arrive by mail. The letter identifies specific items on the return that are in question and requests that you or your representative to bring certain documents to the local IRS office for the auditor’s examination. These are fast and quick audits. The IRS auditor has the ability to audit anywhere from 15 to 20 taxpayers per week.
If your business is a small, sole proprietorship with sales under $250,000, you may be subjected to this type of audit. It is still wise to get formal IRS representation because IRS has the authority to audit three years worth of tax returns they can go forward and they can go back.
3. Field audit.
The IRS revenue agent is a seasoned tax professional and audits high income taxpayers, individuals and corporations.
This type of audit is called “field” audit because the agent will want to conduct the audit at your place of business rather than the IRS office or the office of your tax professional.
How the Audit may take place.
IRS will interview the principals.
The IRS Revenue Agent will generally;
1. Arrange a date(s) to be at your place of business,
2. determine where the records are located,
3. Ask you to provide a list of records that are to be made available.
4. Interview the responsible parties.
It is crucial that during a field audit, you have solid tax representation.
One of the things a season tax representative can do is to make sure IRS is not a fishing expedition and a good tax representative can minimize the IRS audit.
Being former IRS agents we can tell you we’d much rather have just the taxpayer there than the representative. On the other hand, if your records are squeaky clean you have nothing to worry about you should and can represent yourself. However, if you have any issues or skeletons or you are not sure you will save yourself a bunch of money by hiring a season tax professional.
4.TCMP Audit.
A TCMP audit means taxpayer compliance measured program.
IRS random samples approximately 10,000 tax returns across the United States to set up national and regional norms. If you have received the TCMP audit you can expect everything on your tax return to be audited. These are a pain in the butt audits but necessary for the IRS to set up their norms and standards.
If you have any questions or concerns call us today and we can help resolve your IRS audit or back tax problems.
We are A+ rated by the Better Business Bureau.
