by Fresh Start Tax | Feb 12, 2013 | Tax Help
IRS Notice of Levy on Wages – Remove your Wage LEVY Now 1-866-700-1040
If you have an IRS notice of levy on your wages call us today to get your wage levy removed or released and get your tax case settled.
We have over 60 years of working directly for the Internal Revenue Service at the local, district, and regional offices of the Internal Revenue Service.
We have worked as agents, instructors, managers and IRS appellate agents. We know the exact procedures on how to get your IRS notice of levy on wages released or removed as soon as possible.
Also on staff are tax attorneys and certified public accountants. All work is done in-house and we are quick and affordable.
IRS will require a current financial statement with complete documentation before any IRS notice of levy on wages is released.
This process is easy, simple and seamless to you the taxpayer. We have released thousands of tax levies since 1982 and we can make this process very simple for you.
Call our office today for a free tax consultation and you should be able to get your IRS notice of levy on your wages released by your next paycheck.
You should go to our homepage on our website and look under IRS forms and download the IRS required financial statement for 433-F fill it out and return it to us. With that in hand we will tell you the exact documentation the IRS requires we will go ahead and then contact the Internal Revenue Service and get your IRS notice of levy on wages removed the released.
Also we will be able to close or settle your case.
After the IRS reviews yours 433-F, IRS will either put your case into an IRS tax hardship, or set you up on a installment agreement or payment agreement, tell you that you are qualified for an offer in compromise.
You should not be fired or threatened because of a tax levy
Employer Threatens to Fire Taxpayer Because of a Levy
Sometimes an employer threatens to fire an employee to avoid handling a levy.
This might be a violation of 15 USC 1674.
If the employer fires the taxpayer because of this, the employer might be fined not more than $1000 or imprisoned for not more than one year, or both.
You should refer the taxpayer to the Wage and Hour Division of the Department of Labor (DOL). DOL, not IRS, must decide if the employer violated the law.
An IRS notice of levy on your wages is a continuous levy. The levy is in effect until you get a release of the notice of Federal tax levy on your wages.
Continuous Effect of Levy on Salary and Wages
Unlike other levies, a levy on a taxpayer’s wages and salary has a continuous effect.
It attaches to all future payments, until the levy is released. Wages and salary include fees, bonuses, commissions, and similar items. All other levies only attach to property and rights to property that exist when the levy is served.
Therefore, if a bank account is levied, it only reaches money in the account when the levy is served. It does not reach money deposited later.
When other income is levied, the levy reaches payment the taxpayer has a fixed and determinable right to. If the taxpayer’s right to that payment is not dependent upon the performance of future services, then the levy will reach the future payments as well.
IRS notice of levy on royalties
A Form 668-A is issued to levy an author’s royalties. The author has a fixed and determinable right to royalties for books that have already been published. The levy reaches royalties for sales of those books in the future. The levy does not reach royalties for books that are written and published later. A new levy must be served to take those royalties.
IRS notice of levy on retirement income
A Form 668-W is issued to levy a taxpayer’s retirement income. The taxpayer has a fixed right to the future payments; therefore, the levy remains in effect until it is released.
Exempt Amount of IRS notice of levy on wages
Part of the individual taxpayer’s wages, salary, (including fees, bonuses, commissions and similar items) and other income, as well as retirement and benefit income, is exempt from levy.
The weekly exempt amount is:
The total of the taxpayer’s standard deduction and the amount deductible for exemptions on an income tax return for the year the levy is served.
Then, this total is divided by 52.
Income that is not paid weekly is prorated, so the same amount is exempt.
Court ordered child support exemption
In addition, the amount the taxpayer needs to pay court ordered child support is exempt.
The support order can originate from a court or administrative process under the laws and procedures of a state, territory or possession.
If support is allowed, the same child can not be claimed as an exemption for figuring the exempt amount.
The taxpayer is not entitled to the support exemption unless the support is being paid.
IRS will consider getting the taxpayer to have the child support payment withheld and sent directly to the person with custody or the taxpayer may make the child support payment through the Service, and the Service will forward the payment. When there is no open assignment, have the payments sent through Submission Processing. This may happen if the payments are being monitored in the campus.
How to claim the the Exempt Amount and the employer’s responsibility
The Notice of Levy on Wages, Salary, and Other Income (Form 668-W) was developed for use when an individual may be entitled to the minimum exemption from levy in IRC 6334(a)(9) and includes a Statement of Exemptions and Filing Status.
The employer gives the statement to the taxpayer to complete and return within three days. If it is not received by then, the exempt amount is figured as if the taxpayer is married filing separate with one exemption.
The taxpayer can give the statement to the employer later to change the exempt amount.
The employer needs to use this statement rather than the employee’s W–4, Employee’s Withholding Certificate. Taxpayers may claim different exemptions for withholding from those claimed on their return.
The tables for figuring the exempt amount
Publication 1494, Tables for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income – Forms 668-W(ACS), 668-W(c)(DO) and 668-W(ICS), is sent with the levy to help figure the exempt amount.
The taxpayer can give a new statement to the employer later to have the exempt amount recomputed. The taxpayer’s filing status or personal exemptions may change. There may also be a change in exempt rates in a new year.
Joint Liabilities
For joint liabilities, the IRS will generally levy the income of the spouse with the larger income.
IRS will Levy both incomes only in flagrant cases of neglect or refusal to pay.
call us today for free initial tax consultation and speak directly to attorneys, CPAs or former IRS agents and managers. We are A+ rated by the BBB and we are very affordable.
IRS notice of levy on wages, remove your federal wage levy now
by Fresh Start Tax | Feb 11, 2013 | Tax Help
Federal Tax Levy – Stop the IRS – Remove your Federal Tax Levy NOW 1-866-700-1040
Call us today and stop your IRS federal tax levy. We will also settle your IRS tax problem.
As former IRS agents and managers we know the exact process. We are quick in affordable and get immediate results.
Whether you have a Bank Levy or a Wage Levy Garnishment we can get removals or releases of the Federal Tax Levy.
We are comprised of former IRS agents, managers and instructors who have over 60 years of direct working experience and knowledge at the local, district and regional offices of the Internal Revenue Service.
Our firm has over 205 years of professional tax experience and we are comprised of tax attorneys, CPAs, and former IRS agents.
It is very possible by the end of this week you will have a removal or release of your federal tax levy.
IRS only issues tax levies as a general rule on bank accounts and on your employer.
IRS generally does this because taxpayers have not responded to letters and notices sent by the IRS. IRS must send out a final notice before it can legally levy.
Requirements for a release or removal of the federal tax levy
IRS will request a current financial statement from any taxpayer or business who wants a removal or release of the federal tax levy. IRS will require a form 433-a or a 433-F which is their version of a financial statement. IRS will want the financial statement completely documented along with an exit strategy by the taxpayer on how the tax debt will be resolved.
As a general rule the three options are available to taxpayers as regard to settlements are as follows
IRS will either:
1.put your case into a tax hardship,
2. in IRS installment or payment arrangement, or
3.IRS will contemplate the filing in the acceptance of an offer in compromise or a tax debt settlement.
Filling out a complete financial statement along with all documentation is critical to get an immediate release or removal of the federal tax levy. We will help you through this process and make this seamless and worry free.
The IRS new fresh start program
With the new fresh start program this can allow you not only to remove or release your federal tax. It may allow you to completely resolve your IRS tax debt with a settlement offer to the Internal Revenue Service.
The newest round of the offer in compromise or the tax debt settlement
Offer in Compromise Under the first round of Fresh Start in 2011, the IRS expanded the Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
An Offer in Compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
The Internal Revenue Service will consider your unique set of facts and circumstances:
a. Ability to pay,
b. Income,
c. Expenses and
d. Asset equity.
The IRS generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time. IRS will explore all other payment options before submitting an offer in compromise.
The Offer in Compromise or the tax debt settlement program is not for everyone.
Make sure you are eligible. before we submit an offer in compromise we will qualify any taxpayer before we turn the information over to the Internal Revenue Service.
Being former IRS agents we know the exact process, strategies and tax settlement procedures to make sure you have a true chance of settlement with the Internal Revenue Service.
If you are any current bankruptcy
Before the IRS will 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.
Submit your offer in compromise.
IRS will require the following tax forms;
1. Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
2. Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
$150 application fee (non-refundable); and
Initial payment (non-refundable) for each Form 656.
Select a different payment option with the Internal Revenue Service
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. See your application package for details.
Understand the process
While your offer in compromise or tax debt settlement is being evaluated:
a. 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);
b. A Notice of Federal Tax Lien may be filed;
c. Other collection activities are suspended;
d. The legal assessment and collection period is extended;
e. Make all required payments associated with your offer;
f. You are not required to make payments on an existing installment agreement; and
g. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Use our 206 years of professional tax experience along with our 60 years of working directly for the Internal Revenue Service to get results. So stop the worry and stress today.
Federal Tax Levy , Stop the IRS, Remove your Federal Tax Levy NOW
by Fresh Start Tax | Feb 11, 2013 | Tax Help
IRS Tax Problems – Tax Problem Settlements, Negotiations – Former IRS Agents 1-866-700-1040
Contact us today and speak directly to tax attorneys, certified public accountants or former IRS agents, managers and tax instructors.
We have over 206 years of professional tax experience in over 60 years of working directly for the Internal Revenue Service and the local, district, and regional offices of the Internal Revenue Service.
On staff are former IRS agents who worked the offer in compromise or IRS tax debt settlement program. We are experienced both at the agent level and at the Appellate Division level as well.
We also taught tax law at the IRS and are true experts in IRS tax problem settlements.
If you have any type of IRS tax problem and are considering some sort of settlement call us today for a free evaluation and consultation to hear the different tax auction and remedies on how to completely and permanently resolve your IRS tax problem. We are some of the most skilled IRS tax problem settlement and negotiation tax specialists nationwide.
The new IRS fresh start initiative.
The new program relates to penalty relief, installment agreements, and offers in compromise.
I would like to say it was named after our firm however we cannot take kudos for the name of the new IRS program.
The Internal Revenue Service announced a major expansion of its “Fresh Start” initiative to help struggling taxpayers by taking steps to provide new penalty relief to the unemployed and making Installment Agreements available to more people.
The IRS is doubling the dollar threshold for taxpayers eligible for Installment Agreements to help more people qualify for the program.
1. Tax Penalty Relief
The IRS announced plans for new penalty relief for the unemployed on failure-to-pay penalties, which are one of the biggest factors a financially distressed taxpayer faces on a tax bill.
To assist those most in need, a six-month grace period on failure-to-pay penalties will be made available to certain wage earners and self-employed individuals. The request for an extension of time to pay will result in relief from the failure to pay penalty for tax year 2011 only if the tax, interest and any other penalties are fully paid by Oct. 15, 2012.
The penalty relief will be available to two categories of taxpayers:
Taxpayers who are wage earners who have been unemployed at least 30 consecutive days during 2011 or in 2012 up to the April 17 deadline for filing a federal tax return this year.
Self-employed individuals who experienced a 25 percent or greater reduction in business income in 2011 due to the economy.
This penalty relief is subject to income limits.
A taxpayer’s income must not exceed $200,000 if he or she files as married filing jointly or not exceed $100,000 if he or she files as single or head of household.
This tax penalty relief is also restricted to taxpayers whose calendar year 2011 balance due does not exceed $50,000.
Taxpayers meeting the eligibility criteria will need to complete a new Form 1127A to seek the 2011 penalty relief.
The failure-to-pay penalty is generally half of 1 percent per month with an upper limit of 25 percent. Under this new relief, taxpayers can avoid that penalty until Oct. 15, 2012, which is six months beyond this year’s filing deadline.
However, the IRS is still legally required to charge interest on unpaid back taxes and does not have the authority to waive this charge, which is currently 3 percent on an annual basis.
Even with the new penalty relief becoming available, the IRS strongly encourages taxpayers to file their returns on time by April 17 or file for an extension. Failure-to-file penalties applied to unpaid taxes remain in effect and are generally 5 percent per month, also with a 25 percent cap.
2. The new IRS Installment Agreements Program.
The Fresh Start provisions also mean that more taxpayers will have the ability to use streamlined installment agreements to catch up on back taxes.
The new threshold
Effective immediately, the threshold for using an installment agreement without having to supply the IRS with a financial statement has been raised from $25,000 to $50,000.
This is a significant reduction in taxpayer burden. I cannot tell you how important this is an helping struggling taxpayers. In the past every taxpayer owing money to the Internal Revenue Service would have to fill out a significant financial statement just to get an IRS payment agreement or installment agreement. Now with this new program it allows taxpayers to set up agreements without a voluminous amount of paperwork and financial statements. This is a huge win for taxpayers.
Taxpayers who owe up to $50,000 in back taxes will now be able to enter into a streamlined agreement with the IRS that stretches the payment out over a series of months or years.
The maximum term for streamlined installment agreements has also been raised to 72 months from the current 60-month maximum. Yes. this allows taxpayers to pay their bill over a full six years.
If you owe over $50,000:
Taxpayers seeking installment agreements exceeding $50,000 will still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F).
Taxpayers may also pay down their balance due to $50,000 or less to take advantage of this payment option.
An installment agreement is an option for those who cannot pay their entire tax bills by the due date. Penalties are reduced, although interest continues to accrue on the outstanding balance. In order to qualify for the new expanded streamlined installment agreement, a taxpayer must agree to monthly direct debit payments.
Call us today and let us set up your installment repayment plan with the Internal Revenue Service. 1-866-700-1040.
3. Offers in Compromise or the IRS Tax Debt Settlement program
Under the first round of Fresh Start, the IRS expanded a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers. An offer-in-compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
The IRS has more flexibility with financial analysis for determining reasonable collection potential for distressed taxpayers.
Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay.
Call us today for free tax evaluation on your case.
We can go over every tax option you have and get you the best possible deal with the Internal Revenue Service. Let us go ahead and permanently resolve your IRS tax problem by settlement and negotiation.
We are A+ rated by the BBB and we are very affordable.
IRS Tax Problem, Tax Problems Settlement & Negotiations – Former IRS Agents
by Fresh Start Tax | Feb 11, 2013 | Tax Help
Florida – Owe State Sales Tax – Unfiled, Late State Sales & Use Tax – Tax Audit 1-866-700-1040
We are comprised of tax attorneys, certified public accountants, and former government agents.
We were over 60 years of working for the federal government in the local, district, and regional offices.
For firm has over 206 years of professional tax experience.
We have helped hundreds and hundreds of taxpayers living in the state of Florida resolve state sales and use tax issues.
Whether you owe back sales or use tax or you have late or unfiled or late tax returns we can go ahead and immediately and permanently resolve your Florida State tax issue.
Contact us today for a free tax consultation.
We are A+ rated by the Better Business Bureau and we are fast and affordable.
Whether you owe sales and use tax or you are going through a sales tax audit call us today and we can take the stress and worry are the situation for you.
Let our years of experience work directly for you.
If you have lost your records we will be able to reconstruct all your tax returns. We have reconstructed hundreds and hundreds of tax returns over the year and we are experts in tax reconstruction.
Do not let the fear of not having tax records keep you from filing back tax-returns.
Florida Sales Tax Audits
As the State of Florida states that a tax audit should be an educational experience to provide an understanding of your responsibilities and rights under Florida tax laws. It should not be a frustrating, time-consuming experience. Although an Sales Tax and Use audit is an enforcement tool to ensure tax compliance, it can help businesses identify and correct bookkeeping problems that could cause additional tax liabilities.
The Department of Revenue (DOR) wants to help you avoid penalties and interest that result when you do not pay your taxes correctly or on time.
Why Are Taxpayers Audited?
The State of Florida audits taxpayers to:
• Enforce Florida tax laws uniformly,
• Deter tax evasion,
• Promote voluntary compliance,
• Educate taxpayers.
Most filed tax returns are correct and accepted by the State
While the State of Florida accepts most tax returns as filed, the State audits some tax returns to verify accuracy and evaluate compliance.
State 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 was your tax return selected for a State tax audit?
The strategies for selecting a business or individual to audit vary from tax to tax. Here are some examples of sources used to identify a potential audit candidate:
a. Internal Revenue Service information.
b. Information sharing programs with other states or other state agencies.
c. Computer-based random selection.
d. Analysis of Florida tax return information.
e. Business publications, periodicals, journals, and directories.
What Happens During a Florida State Sales and Use Tax Audit?
The State conducts two types of audits:
1. those done in States offices (desk audits), and
2. those done at your place of business (field audits).
We use paper or electronic records to complete an audit (see “What is e-Auditing?”).
Major tax audits
Generally, we will audit a major tax, such as sales and use or corporate income, along with related taxes, such as local option or emergency excise.
The auditor begins by mailing you a Notification of Intent to Audit Books and Records (Form DR-840 or CA-I).
This notice identifies the audit period and taxes to be examined. The auditor will also inform you of the records you will need to provide.
The types of records needed may include, but are not limited to: federal income tax returns, Florida tax returns, depreciation schedules, general ledgers and journals, property records, cash receipt and disbursement journals, purchase and sales journals, sales tax exemption or resale certificates, and documentation to verify amounts entered on tax returns.
You may receive a questionnaire to assess the potential for an electronic audit.
Record-keeping for the State of Florida
You must keep your records for 3 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.
If you fail to show up for a Florida State sales or use tax audit
If you fail to have or show up with tax records the State will estimate your Sales Tax.
Areas of Professional Tax Practice:
- Same Day IRS Tax Representation
- Offers in Compromise or IRS Tax Debt Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS Tax Audits
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction if Tax Records are lost or destroyed
- Owe State Sales Tax, Unfiled, Late Sales and Use Tax
Our Company Resume: ( Since 1982 )
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE 90.3 FM Monthly Radio Show-Business Weekly
Florida – Owe State Sales Tax – Unfiled, Late Sales & Use Tax – Audit Help – Local Florida Firm
by Fresh Start Tax | Feb 10, 2013 | Tax Help
MIAMI – IRS TAX AUDIT HELP & REPRESENTATION – FORMER LOCAL IRS AGENTS – APPEAL RIGHTS 954-492-0088
We are comprised of Tax Attorneys, CPAs, and former IRS agents, managers and instructors who worked out of the local South Florida offices for over 60 years.
As a result of our years of experience we know all the IRS tax policies, tax settlement procedures, and IRS closing techniques in regard to IRS tax audits.
As a result or 60 years experience we can help give you peace of mind and stop the worry of IRS taking charge and taking over your financial life.
Call us today for free tax consultation and speak directly to a tax attorney, CPA, or former IRS agent.
If the IRS sends to you the result of an IRS audit do not be so quick to sign.
Have us for no charge review the revenue agent report and let’s find out if there’s something we can do about making the applicable changes to lower your total tax penalties and interest.
The IRS has an administrative appeals process that works with taxpayers to try to settle tax disputes in an effort to avoid formal court hearings.
The role of IRS Tax Appeals is to make an independent review of a tax dispute and to consider the positions taken by both the taxpayer and the Service.
The Appeals unit strives to resolve tax disputes in a fair way and remain impartial to both parties.
IRS will send you a copy of the report
The IRS will send you a report and/or letter that will explain the proposed adjustments or proposed or taken collection action. The letter also tells you of your right to request a conference with an Appeals or Settlement Officer, as well as how to make your request for a conference.
In addition to the tax examination adjustments, many other things can be appealed such as penalties, interest, trust fund recovery penalties, offers in compromise, liens, and levies. If you request an Appeals conference, be prepared with records and documentation to support your position.
We will review your report and find out if there is any avenues that we can take on filing an appeal to lower your tax and abate penalties and interest.
Appeals conferences are very informal meetings.
You may represent yourself or have an attorney, accountant, or an individual enrolled to practice before the IRS, represent you. If you do not reach agreement with the Appeals or Settlement Officer, or you do not wish to appeal within the IRS, you may appeal certain actions through the courts.
More information – New Method of Tax Audits from the IRS – Machine Learned Audit
This is a press release our firm issued.
“The public should be aware that the IRS has begun using a new audit method, the” Machine Learning Tax Audit”, states Michael Sullivan of Fresh Start Tax and a former IRS Agent. “This new system will allow the IRS to conduct more audits on a yearly basis, which will create more IRS tax problems and tax debt for individuals.”
It used to be that a tax return was selected for an IRS audit based on a DIF Score (Discriminatory Index Function) issued by the IRS. The DIF Score is a mathematical technique used to rate tax returns for potential examination.
However, now we are learning that the IRS has developed the ”machine learning computer program” in their Artificial Intelligence Division. According to Reference.com, “Machine Learning” is a type of artificial intelligence that is concerned with the design and development of algorithms and techniques that allow computers to “learn”.
If you receive any type of letter or notice from Internal Revenue Service that they are planning to audit your tax return, or you have a revenue agent or auditors report and you wish to have our tax firm review, it please call us today for a free tax consultation.
MIAMI – IRS & SALES TAX AUDITS – ATTORNEYS, FORMER IRS – AUDIT EXPERTS – Appeal Rights
by Fresh Start Tax | Feb 9, 2013 | Tax Help
Audit by the IRS – Former Local IRS Agents – Stop the WORRY – Miami, Ft.Lauderdale, West Palm, Boca Raton, Florida Keys 954-492-0088
We are comprised of tax attorneys, certified public accountants, and former IRS agents. We have over 60 years of direct working experience in the local South Florida offices as well as in the district and regional offices of the Internal Revenue Service.
Our firm has over 206 years of professional tax experience and we are experts in IRS tax audits.
Come and visit us for a free consultation and let us go ahead and stop the worry in the stress that occurs when you are audited by the IRS.
We have handled hundreds and hundreds of IRS audits since 1982 right here in South Florida. We are one of the most experienced tax firms when it comes to IRS representation and IRS problem-solving.
Our former IRS agents have worked as revenue officers, revenue agents, IRS tax instructors, IRS audit managers, and IRS teaching instructors at the regional offices of the Internal Revenue Service.
Call us today and stop the worry right now. 1-866-700-1040
Why IRS audits tax returns.
The IRS examines (audits) tax returns to verify that the tax reported is correct. Selecting a tax or business return for examination does not always suggest that the taxpayer has either made an error or been dishonest. In fact many tax examinations result in a refund to the taxpayer or acceptance of the return without change.
The overwhelming majority of taxpayers files tax returns and make payments timely and accurately. Taxpayers have a right to expect fair and efficient tax administration from the IRS, including verification that taxes are correctly reported and paid with enforcement actions against those who fail to comply voluntarily.
What are your rights during an audit by the IRS
The IRS trains its employees to explain and protect taxpayers’ rights throughout their contacts with taxpayers. Over the last five years IRS is done excellent job advising taxpayers of their rights.
These rights should include:
a. A right to professional and courteous treatment by IRS employees.
b. A right to privacy and confidentiality about tax matters.
c. A right to know why the IRS is asking for information, how the IRS will use it and what will happen if the requested information is not provided.
d. A right to representation, by oneself or an authorized representative.
e. A right to appeal disagreements, both within the IRS and before the courts. We have a former IRS appeals agent on staff who has worked in the appeals position for over 35 years
How Tax and Business Returns Are Selected fora Tax Examination
The IRS selects returns using a variety of methods, these are the most common methods used by IRS.
Potential participants in abusive tax avoidance transactions .
Some returns are selected based on information obtained by the IRS through efforts to identify promoters and participants of abusive tax avoidance transactions.
Examples include information received from “John Doe” summonses issued to credit card companies and businesses and participant lists from promoters ordered by the courts to be turned over to the IRS.
The DIF process or the Computer Scoring Process.
Each tax return receives a DIF score. The higher the DIF the greater chance of a IRS tax audit.
Some tax returns are selected for examination on the basis of computer scoring. Computer programs give each return numeric “scores”. The Discriminant Function System (DIF) score rates the potential for change, based on past IRS experience with similar returns.
The Unreported Income DIF (UIDIF) score rates the return for the potential of unreported income. IRS personnel screen the highest-scoring returns, selecting some for audit and identifying the items on these returns that are most likely to need review. After reviewing thousands of tax returns is easy to spot unreported income. If you think that is the case with your tax return you absolutely need to seek a tax professional to represent you if you are audited by the IRS.
Large Corporations.
The IRS examines many large corporate returns annually. IRS has special revenue agents group that deals solely with large corporations. No company that has in excess of $1 million in annual revenue should go into the IRS unrepresented.
Information Matching.
IRS audits 1.4 million tax returns due to in formation matching. It collects billions and billions of dollars as a result of taxpayers not reporting W-2 and 1099 income. Information matching is a steady stream of revenue for the Internal Revenue Service. It is the easiest way for IRS to pick up revenue dollars during an IRS audit.
Some returns are examined because payer reports, such as Forms W-2 from employers or Form 1099 interest statements from banks, do not match the income reported on the tax return.
Related Examinations.
Tax 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 examination.
Other types of tax audits
Area offices may identify returns for examination in connection with local compliance projects. These projects require higher level management approval and deal with areas such as local compliance initiatives, return preparers or specific market segments.
Tax Examination Methods
An IRS tax examination 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).
Taxpayers may make audio recordings of interviews, provided they give the IRS advance notice. If the time, place, or method that the IRS schedules is not convenient, the taxpayer may request a change, including a change to another IRS office if the taxpayer has moved or business records are there.
The audit notification letter tells which records will be needed. Taxpayers may act on their own behalf or have someone represent or accompany them. If the taxpayer is not present, the representative must have proper written authorization.
The IRS tax auditor will explain the reason for any proposed changes. Most taxpayers agree to the changes and the audits end at that level. As a general rule 80% of all taxpayers settle at this level.
Your Appeal Rights after an IRS tax audit
Appeal Rights are explained by the examiner at the beginning of each audit.
Taxpayers who do not agree with the proposed changes may appeal by having a supervisory conference with the examiner’s manager or appeal their case administratively within the IRS, to the U.S. Tax Court, U.S. Claims Court or the local U.S. District Court.
If there is no agreement at the closing conference with the examiner or the examiner’s manager, the taxpayer has 30 days to consider the proposed adjustments and their next course of action.
If the taxpayer does not respond within 30 days, the IRS issues a statutory notice of deficiency, which gives the taxpayer 90 days to file a petition to the Tax Court. The Claims Court and District Court generally do not hear tax cases until after the tax is paid and administrative refund claims have been denied by the IRS.
The tax does not have to be paid to appeal within the IRS or to the Tax Court. A case may be further appealed to the U.S. Court of Appeals or to the Supreme Court, if those courts accept the case.
By calling us today you can speak directly to a former IRS appeals agent specialist who has over 25 years with the Internal Revenue Service and the Appellate Division alone
IRS Audit Technique Booklet
Audit Techniques Guides
IRS Audit technique guides or resource used by the Internal Revenue Service to go ahead and perform tax audits for various businesses industries and individuals.
If you are undergoing a tax audit it is best for you to review these audit technique guides to understand the different issues and the processes that IRS we used to conduct their tax audit.
These Audit Techniques Guides help IRS examiners during audits by providing insight into issues and accounting methods unique to specific industries. While ATGs are designed to provide guidance for IRS employees, they’re also useful to small business owners and tax professionals who prepare returns.
ATGs explain industry-specific examination techniques and include common, as well as, unique industry issues, business practices and terminology.
Tax Audit Guidance is also provided on the examination of income, interview techniques and evaluation of evidence.
So they may be helpful for business and tax planning purposes.
Audit by the IRS – Former Local IRS Agents – Stop the WORRY – Miami, Ft.Lauderdale, West Palm, Boca, Florida Keys
