Miami, Keys – IRS Tax Audit Defense – Former IRS Agents, Managers – Dade, Monroe County

by Fresh Start Tax | Feb 9, 2013 | Tax Help

Miami, Keys – IRS Tax Audit Defense – Former IRS Agents, Managers – Dade, Monroe County 954-492-0088

 
If you are undergoing an IRS tax audit it only makes sense to contact former IRS agents and managers who know the complete process of the IRS tax audit.
Hiring former IRS agents can relieve you of the stress and worry that comes through the IRS audit process.
Our firm is comprised of tax attorneys, certified public accountants, and former IRS agents.
We have over 206 years of professional tax experience in over 60 years of working directly for the Internal Revenue Service and the local South Florida IRS offices.
As a result of our years of experience we know all the tax policies, tax procedures and IRS tax settlement closing programs to go ahead and settle your case for the lowest dollar allowed by law.
We also have month staff a former IRS appeals agent of 35 years who can walk you through any appeals process necessary.
Contact us today for free IRS tax consultation on IRS tax audit defense. 954-492-0088.

Here are common questions that taxpayers have asked regarding IRS tax audits.

Does the IRS ever contact a taxpayer or the tax preparer via e-mail to initiate an  IRS tax audit?
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.
Does filing an amended tax return affect the return selection process?
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. Please be aware that it takes longer to process an amended tax return.
Why was my return selected for IRS tax  audit?
When  tax 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: factors particular to the area such as issues pertaining to construction, farming, timber industry, etc. that have specific factors 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.
Where will the IRS tax audit be held?
It depends on the type of audit being conducted.
a. Some audits are at IRS offices and these are commonly called IRS office audits.
b. Others take place in businesses and usually revenue agents are assigned cases. These are commonly called field audits.
c. 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. IRS audits approximately 1.4 million taxpayers as a result of mail correspondence audits.
Can you request the audit be conducted at the IRS office instead of at your place of business?
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 place of audit, discusses the items considered when a request for a change in location is made. Usually the group manager has the ultimate authority of controlling were the audit will take place.
Can the audit be transferred to another IRS office?
You can request a transfer of an audit if you have moved. Several factors 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.
How long should the records related to a business or other long-term asset be kept?
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.
Payroll tax records. How long should payroll records be kept?
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.
After an auditor completes the audit, will the case be reviewed to ensure the audit results are correct?
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.
Many people are not ready for their audit so what do you do when it’s time for my appointment and I’m not ready. What do I do?
If you do not have all the information requested, contact your auditor at the number reflected in the notification letter to discuss what information is currently available. It may be possible to begin the audit with the information available rather than postpone the appointment.
The quicker the audit begins, the quicker it can be resolved. In addition, if the initial appointment is scheduled beyond 45 days from the initial action, managerial approval is required.
How far back can the IRS go to audit my return?
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 than 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
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.
If you do not agree with the findings from an IRS tax audit
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 tax examiner may not be able to consider additional adjustments, such as expenses, that could lower the amount of tax due.
if you have nothing to fear I’m your tax return I would suggest you go in for your own IRS tax audit defense. However if you have issues or skeletons that may be in the closet regarding your tax return it is always best to hire an experienced tax professional.
Miami, Keys – IRS Tax Audit Defense – Former IRS Agents, Managers – Dade, Monroe County

Tax Return – What Form should you file – Former IRS Agent explains

by Fresh Start Tax | Feb 9, 2013 | Tax Help

 
Which Tax Return Form should you File?
The IRS e-file makes it easy for taxpayers to choose which tax form to file. Tax software automatically chooses the best form for your particular situation.
One of the reasons taxpayers use professional tax for preparers is to make sure a proper tax return is filed. Over 65% of all tax returns are prepared by professional tax preparers.
For those who want to file their own tax return here are some tips you will find very helpful.
Most people e-file these days, but if you prefer taking pen to paper, the IRS has some tips to help you choose the right form.
Taxpayers who choose to file a paper tax return should know that the IRS no longer mails paper tax packages.
The quickest way to get forms and instructions is by visiting the IRS website at IRS.gov. You can also order forms and have them mailed to you by calling the IRS forms line at 1-800-TAX-FORM (829-3676).
You may also pick up tax forms from a local IRS office, and some libraries and post offices carry tax forms.
Here are some tips that will help paper tax return filers choose the best tax form for their 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
If you can’t use Form 1040EZ, you may qualify to use the 1040A if:
1. Your taxable income is below $100,000;
2. You have capital gain distributions;
3. You claim certain tax credits; and
4. You claim adjustments to income for IRA contributions and student loan interest.
If you cannot use the 1040EZ or the 1040A, you’ll probably need to file using the 1040. The reasons you must use the 1040 include:
1. Your taxable income is $100,000 or more;
2. You claim itemized deductions;
3. You are reporting self-employment income; and
IRS Publication 17, Your Federal Income Tax, provides helpful information about which form is best for you.
Access to IRS forms and instructions or information about e-filing, including IRS Free File, is available 24 hours a day, seven days a week on IRS.gov.
Tax products often appear online well before they are available on paper. You’ll find down loadable tax products on IRS.gov by clicking on the “Forms and Pubs” link on the Home page.
For those of you who have simple tax returns I would suggest you file your own tax return however for those of you who have more complicated returns you should always use a professional tax preparer so you wind up paying the lowest dollar of tax allowed by law.
Tax Return – What Form should you file – Former IRS Agent explains

Tax Return Problems – Former IRS Agents Experts in Tax Return Problems

by Fresh Start Tax | Feb 8, 2013 | Tax Help

Tax Return Problems – Former IRS Agents Experts in Tax Problems    1-866-700- 1040

 
We are comprised of tax attorneys, certified public accountants and former IRS agents with over 60 years of direct working experience and knowledge of the IRS.
We have worked in the local, district, and regional offices of IRS.
We have worked as revenue officers, revenue agents, tax auditors, audit managers and appeals agents.
We know every facet of the Internal Revenue Service.
We know all the tax policies, tax codes and tax settlement procedures to end your tax return problems.
All our work is done in-house and we are A+ rated by the Better Business Bureau.
You can call us for a free tax consultation and speak directly to tax attorneys, CPAs are former IRS agents.
So stop the stress and worry and let our tax experts resolve your tax return problems. We have been practicing since 1982 and have 206 years of professional tax experience.
The new IRS initiative called Fresh Start is helping many people that have tax return problems. please read below:
New IRS Fresh Start Initiative Helps Taxpayers Who Owe Taxes
 
The Internal Revenue Service has expanded its “Fresh Start” initiative to help struggling taxpayers who owe taxes.
The following four tips explain the expanded IRS Tax relief for taxpayers.
1. Penalty Relief.
The Penalty Relief part of the initiative relieves some unemployed taxpayers from failure-to-pay penalties. Penalties are one of the biggest factors a financially distressed taxpayer faces on a tax bill.
The Fresh Start Penalty Relief Initiative gives eligible taxpayers a six-month extension to fully pay 2011 taxes. Interest still applies on the 2011 taxes from April 17, 2012 until the tax is paid, but you won’t face failure-to-pay penalties if you pay your tax, interest and any other penalties in full by Oct. 15, 2012.
The penalty relief is available to two categories of taxpayers in need:
1. Wage earners who have been unemployed at least 30 consecutive days
during 2011 or in 2012 up to this year’s April 17 tax deadline.
2. Self-employed individuals who experienced a 25 percent or greater
reduction in business income in 2011 due to the economy.
 To qualify  for penalty relief
To qualify for this penalty relief, your adjusted gross income must not exceed $200,000 if married filing jointly or $100,000 if your filing status is single, married filing separately, head of household, or qualifying widower.
Your 2011 balance due can not exceed $50,000.
Taxpayers who qualify need to complete a new Form 1127A to request the 2011 penalty relief.
 Installment agreements or part pay plans
Installment agreements.
An installment agreement is a payment option for those who cannot pay their entire tax bill by the due date. The Fresh Start provisions give more taxpayers the ability to use streamlined installment agreements to catch up on back taxes and also more time to pay.
The new threshold for requesting an installment agreement has been raised from $25,000 to $50,000.
This  new option requires limited financial information, meaning far less burden to the taxpayer.
The maximum term for streamlined installment agreements has been raised to six years from the current five-year maximum. This new 72 month program has really made it easy on taxpayers who need longer periods of time to pay off their tax debt. IRS has finally understood that it needs to help taxpayers who are financially struggling.
For IRS debts over $50,000
If your tax debt is more than $50,000, you’ll still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F).
You also can pay your balance down to $50,000 or less to qualify for this payment option. We recommend most of our clients who have the ability to pay this tax debt down to under $50,000  to do so because it makes this process almost seamless.
With an installment agreement, you’ll pay less in penalties, but interest continues to accrue on the outstanding balance.
In order to qualify for the new expanded streamlined installment agreement, you must agree to monthly direct debit payments.
The IRS offer in compromise or the IRS tax debt settlement policy
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.
The IRS recognizes many taxpayers are still struggling to pay their bills so the agency has been working on more common-sense changes to the OIC program to more closely reflect real-world situations.
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 to find out if you qualify for an IRS offer in compromise.
On staff for former IRS agents who not only accepted offers in compromise as former IRS employees but also worked in the appeals acceptance of the IRS tax debt settlement call offers compromise.
We will do a free offer in compromise a valuation so  do not spend any money in the filing of an OIC and less you been qualified to do so.
Please go to your website and fill out IRS form 433 OIC  and return it to us and we will give you a free tax evaluation on whether you qualify for the fresh start offer in compromise program.


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
• Tax Return Problems

 
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 Net Radio.com – Monthly Radio Show-Business Weekly

 
Tax Return Problems – Former IRS Agents Experts in Tax Return Problems
 

Missing, Cannot Get W-2 – Here is What to Do – Former IRS

by Fresh Start Tax | Feb 8, 2013 | Tax Help

Missing, Cannot Get W-2 – Here is What to Do Former IRS

 
I cannot tell you how many times we have been called regarding missing W-2s and employers who have not send out W-2s to their employees.
It is a very frustrating process when taxpayers want to file their tax returns and get their tax refunds and for various reasons I cannot get a copy of their W-2.
Here are some suggestions on how to go ahead and acquire your W-2.
It’s a good idea to have all your tax documents together before preparing your 2012 tax return. You will need your W-2, Wage and Tax Statement, which employers should send by the end of January.
Give it two weeks to arrive by mail.
If you have not received your W-2, follow these three steps:
1. Contact your employer first.
Ask your employer  or former employer  to send your W-2 if it has not already been sent. Make sure your employer has your correct address.
2. Contact the IRS.
After February 14, you may call the IRS at 800-829-1040 if you have not yet received your W-2. Be prepared to provide your name, address, Social Security number and phone number.
1.  You should also have the following information when you call:
2.  Your employer’s name, address and phone number;
3.  Your employment dates; and
4. An estimate of your wages and federal income tax withheld in 2012, based upon your final pay stub or leave-and-earnings statement, if available.
3. File your return on time.
You should still file your tax return on or before April 15, 2013, even if you have not yet received your W-2.
File Form 4852, Substitute for Form W-2, Wage and Tax Statement, in place of the W-2. IRS will usually accept form 4852 and place of the W-2.
Use the form to estimate your income and withholding taxes as accurately as possible. The IRS may delay processing your return while it verifies your information.
If you have a copy of a pay stub that the employer used during the year to verify the amount of wages and withholding it is helpful to go ahead and attach that pay-stub to form 4852.
If you need more time to file you can get a six-month extension of time. File Form 4868, Application for Automatic Extension of Time to File US Individual Income Tax Return.
If you are requesting an extension, you must file this form on or before April 15, 2013.
If you receive the missing W-2 after filing your tax return and the information on the W-2 is different from what you reported using Form 4852, then you must correct your tax return. File Form 1040X, Amended U.S. Individual Income Tax Return to amend your tax return.
Missing, Cannot Get W-2 – Here is What to Do – Former IRS

West Palm Beach, Boca Raton – IRS Tax Audit Help & Representation – Former IRS Agents

by Fresh Start Tax | Feb 8, 2013 | Tax Help

West Palm Beach – IRS Tax Audit Help & Representation – Former IRS Agents   954-492-0088

 
We are comprised of tax attorneys CPAs and former IRS agents. We worked out of South Florida IRS offices for over 60 years both in the local, district, and regional offices of the Internal Revenue Service.
We are A+ rated by the utter business bureau, we are fast, and affordable.
We have represented hundreds of South Floridians I have settled a negotiated their cases successfully.
You can contact us today for a no  cost professional tax consultation.
 IRS Audit Selection Process
Selecting a income or business tax return for IRS tax audit  does not always suggest that an error has been made.
Tax Returns are selected using a variety of methods:
Random selection and computer screening. Sometimes returns are selected based solely on a statistical formula.
Document matching.
Over 1.4 million tax returns are selected for document matching audits. IRS collects billions of dollars through document matching. I arrest is not audit the tax return in the current year IRS will usually document match tax returns that are a year or two years old.
When payor records, such as Forms W-2 or Form 1099, don’t match the information reported.
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 audit.
IRS  Tax Audit Methods
An IRS Tax 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  generally tell you what records are needed.
Tax audits can result in no changes or changes. Any proposed changes to your return will be explained.
 IRS tax audit Notification
Should your account be selected for audit, you will be notified in two ways:
1. By mail, or
2. By telephone
In the case of a telephone contact, the IRS will still send a letter confirming the audit. E-mail notification is not used by the IRS.
Your Rights During an Audit
To find out more about IRS tax audit information you can always secure IRS Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund processes.
These tax audit rights 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 d. will happen if the requested information is not provided.
e. A right to representation, by oneself or an authorized representative.
f. A right to appeal disagreements, both within the IRS and before the courts.
 IRS tax audit Length
The length of each audit varies depending on the type of audit, the complexity of items being reviewed, the availability of information being requested, the availability of both parties for scheduling of meetings and your agreement or disagreement with the findings.
Records Needed  for an IRS tax audit
You will be provided with a written request for specific documents needed.
The law requires you to retain records used to prepare your return. Those records generally should be kept for three years from the date the tax return was filed.
The IRS does accept some electronic records. If records are kept electronically, the IRS may request those in lieu of or in addition to other types of records. Contact your auditor to determine what can be accepted to ensure a software program is compatible with the IRS’s.
 IRS tax Audit Determinations
An audit can be concluded in three ways:
1.No change.
an audit in which you have substantiated all of the items being reviewed and results in no changes.
2. Agreed.
an audit where the IRS proposed changes and the taxpayer understands and agrees with the changes.
3. Disagreed
an audit where the IRS has proposed changes and the taxpayer understands, but disagrees with the changes.
 
IRS tax audit Burden of Proof information
The responsibility to prove entries, deductions, and statements made on your tax returns is known as the burden of proof. You must be able to prove (substantiate) certain elements of expenses to deduct them.
Generally, taxpayers meet their burden of proof by having the information and receipts (where needed) for the expenses. You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement.
You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses. Additional evidence is required for travel, entertainment, gifts, and auto expenses.
West Palm Beach, Boca Raton – IRS Tax Audit Help & Representation – Former IRS Agents