by Fresh Start Tax | Feb 6, 2013 | Tax Help
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Ft.Lauderdale – IRS Tax Audit Help & Representation – Former IRS – IRS Audit Expert 954-492-0088
We are comprised of tax attorneys, CPAs, and former IRS agents, managers and instructors.
We work out of the local South Florida offices for over 60 years. We also worked out of the district and regional offices of the Internal Revenue Service and Tax Law to the new IRS agents.
As a result of our years of IRS experience we know every position that IRS takes during a tax audit.
We know all the strategies, policies and all the procedures used by Internal Revenue Service and know all the applicable tax defenses used when applicable in these cases.
Call us today and here the truth about your IRS tax audit.
Why you may have been selected for a IRS tax audit
1% of all tax returns are audited by the Internal Revenue Service. The higher income you make the greater potential of a tax audit. most all tax returns are selected for audit by the CADE 2 computer, the IRS beast.
Tax returns are selected for audits in several ways.
The most common method is through the DIF process.
The primary way that the IRS selects returns for audit is the Discriminate Function (DIF) system. Every tax return has a DIF score. The DIF system uses mathematical formulas to weigh the various characteristics of tax returns and score them accordingly, in an effort to find the returns that would most likely have a difference between taxes owed and reported. IRS uses revenue agents and tax examiners to then look over every tax return that has a high DIF score to verify that a particular tax return has audit potential.
Most of these agent are very trained a very proficient in picking up in tax returns that are deserving of an IRS tax audit.
We have a revenue agent on staff that used to classify tax returns at the IRS Service Center.
An example of this
for example, if an individual earns $60,000 in a year and makes a charitable contribution of $6,000, that characteristic would more than likely carry a higher weight than it would for an individual who had $700,000 in income and made that same charitable contribution; the first return would receive a higher score.
As a general rule, the higher the score, the higher the probability of a tax change, the highest scoring returns are then forwarded for further review to a tax examiner.
At the current time IRS is trying a new process called “machine learning audits”. It is a process where no IRS agent looks at the return it just sends to the field the tax returns for audit.
The IRS is going to engage the system for a year then look at the results and determine the worthiness of these of the system
There is another way that tax returns can be selected for further examination
The National Research Program
In this NRP program, the IRS conducts examinations to gather data for use throughout the IRS in an effort to improve the tax system.
Tax Returns are randomly selected, yes randomly selected, to allow the IRS to collect statistically valid information about how taxpayers meet their taxpaying responsibilities.
These tax audits are generally more thorough than the so-called regular types of audits because of their basis in research. Many professionals call least tax audits, the audits from hell because many times the IRS will audit every single item on the tax return.
IRS will use these tax return results to set up national standards for DIF scores mentioned above.
IRS Matching Programs
Under this type of audit the IRS would match various reporting documents, such as Forms 1099 for dividends or interest, with the income reported on the tax return.
If there is a mismatch or a missing amount, the IRS will contact the taxpayer for more information. The taxpayer must then respond to the IRS with an explanation of the difference or an agreement to pay the amount due.
IRS audits approximately 1.4 million taxpayers as a result of mismatches through the matching program.
Billions of dollars are collected as a result of these matching programs.
Record keeping for the Taxpayers
Keep good records. Good records will help you monitor the progress of your business, prepare your financial statements, identify source of receipts, keep track of deductible expenses, prepare your tax returns, and support items reported on tax returns.
What kinds of records should I keep?
You may choose any record keeping system suited to your business that clearly shows your income and expenses.
Except in a few cases, the law does not require any special kind of records.
However, the business you are in affects the type of records you need to keep for federal tax purposes.
How long should I keep records?
The length of time you should keep a document depends on the action, expense, or event the document records.
You must keep your records as long as they may be needed to prove the income or deductions on a tax return. As a general rule IRS requires you keep your tax records for three years.
How long should I keep employment tax records?
You must keep all of your records as long as they may be needed; however, keep all records of employment taxes for at least four years.
How should I record my business transactions?
Purchases, sales, payroll, and other transactions you have in your business generate supporting documents. These documents contain information you need to record in your books. His best to keep copies of these in a safe place just in case some unexpected event takes place or your records are destroyed. Copies can be with your accountant or in safety deposit boxes.
What is the burden of proof?
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.
Keep in mind that if you ever lose your tax records a good tax firm can help reconstruct both and your deductions.
Ft.Lauderdale – IRS Tax Audit Help & Representation – Former IRS – IRS Audit Experts
by Fresh Start Tax | Feb 6, 2013 | Tax Help
MIAMI – IRS Tax Audit Help & Representation – Former IRS Agents & Managers – Tax Audit Experts 954-492-0088
We are comprised of tax attorneys, CPAs, and former IRS agents, managers and tax instructors.
We worked out the local South Florida IRS offices for over 60 years and are true experts in IRS tax audit help and representation.
As a result of our many years of IRS experience at IRS we know all the tax policies, tax closing procedures, and tax codes that relate to lowering your tax debt is much as possible.
We have represented hundreds and hundreds of Floridians through their IRS tax audits.
Stop the worry and stress today and let her experience work for you.
Call or come by and visit us in person and let us show you how true professionals handle an IRS tax audits. Also, on staff as a former IRS appeals agent of 35 years.
We are your full service tax firm located right here in South Florida.
Why you may have been selected for a tax audit
1% of all tax returns are audited by the Internal Revenue Service. The higher income you make the greater potential of a tax audit.
Tax returns are selected for audits in several ways. The most common method is through the DIF process.
The primary way that the IRS selects returns for audit is the Discriminate Function (DIF) system. Every tax return has a DIF score. The DIF system uses mathematical formulas to weigh the various characteristics of tax returns and score them accordingly, in an effort to find the returns that would most likely have a difference between taxes owed and reported. IRS uses revenue agents and tax examiners to then look over every tax return to verify that a particular tax return has audit potential.
We have a revenue agent on staff who works in our office that used to classify tax returns at the service center.
An example of this
For example, if an individual earns $60,000 in a year and makes a charitable contribution of $6,000, that characteristic would more than likely carry a higher weight than it would for an individual who had $700,000 in income and made that same charitable contribution; the first return would receive a higher score.
As a general rule, the higher the score, the higher the probability of a tax change, the highest scoring returns are then forwarded for further review to a tax examiner.
There are several other ways that returns can be selected for further examination
Corporate Officer Return Compliance Check
As a part of every corporate or business audit, the IRS will determine whether the corporate officers’ returns have been filed. Generally the revenue agent will make this determination.
The IRS will review the return for items that appear large, unusual, or otherwise questionable and will then determine whether or not the return will be audited. This routine check does not constitute an audit, but as a result of it, corporate officers may be subject to a greater level of scrutiny than those who are not subject to this additional review.
Usually experienced revenue agents can determine immediately how deep the tax audit needs to go.
Flow-through Examinations too others
If the IRS proposes a change to the filed return of a partnership, S-corporation or trust, the partners, shareholders or distributees of a trust may see their income changed as well. This may result in additional scrutiny of the individual’s return and a possible separate examination. Some of these tax examinations may last as long as the year.
The National Research Program
See our website for more on this.
In this NRP program, the IRS conducts examinations to gather data for use throughout the IRS in an effort to improve the tax system. Tax Returns are randomly selected to allow the IRS to collect statistically valid information about how taxpayers meet their taxpaying responsibilities.
These tax audits are generally more thorough than the so-called regular types of audits because of their basis in research. Many professionals call least tax audits, the audits from hell because many times the IRS will audit every single item on the tax return.
IRS will use these tax return results to set up national standards for DIF scores mentioned above.
IRS Matching Programs
Under this type of audit the IRS would match various reporting documents, such as Forms 1099 for dividends or interest, with the income reported on the tax return.
If there is a mismatch or a missing amount, the IRS will contact the taxpayer for more information. The taxpayer must then respond to the IRS with an explanation of the difference or an agreement to pay the amount due.
IRS audits approximately 1.4 million taxpayers as a result of mismatches through the matching program.
Billions of dollars are collected as a result of these matching programs.
Call us today to learn more about IRS tax audit help and representation.
You will speak directly to tax attorneys, CPAs were former IRS agents and managers.
If you need to file a current year’s tax return please contact us and we can help audit proof your tax return.
MIAMI – IRS Tax Audit Help & Representation – Former IRS Agents & Managers – Tax Audit Experts
by Fresh Start Tax | Feb 6, 2013 | Tax Help
IRS Problems – Owe Back Taxes, Back Returns, Tax Audits – Miami, Ft. Lauderdale, West Palm, The Florida Keys 954-492-0088
Let former IRS agents permanently and immediately resolve your IRS problems. Over 60 years of combined work experience.
Call or visit our office for free professional tax consultation and hear the truth about your situation. We are very affordable.
If you have IRS problems you can call us today for free professional tax consultation and hear about the different tax options you have in going ahead in permanently and immediately resolving your tax situation.
If you owe back taxes or have unfiled past-due tax returns or undergoing an IRS tax audit, we can help relieve the stress and worry that you have about your current tax situation.
We are comprised of tax attorneys, CPAs, and former IRS agents and managers.
We have over 60 years of direct work experience in the South Florida IRS offices have also taught tax law at the Internal Revenue Service.
All our work is done in-house and you should also know we do work for several firms who do not have tax departments.
With the new fresh start initiative introduced by IRS six months ago the Internal Revenue Service has made it much easier to go ahead and settle your back tax issues.
Back Tax Returns
Most people who have not filed back tax returns have a natural hesitation to come forward due to the spiraling effect the non filing has in a persons life. We can go ahead and prepare all your back tax returns and work out a tax settlement for you.
Whether you have little or few records we can still prepare your back tax returns as we are experts in tax reconstruction. Remember, at some point you’re going to have to get back in the system. We can make this a painless experience for you.
Do not let fear cripple you and not filing back tax returns. Being former IRS agents and managers we know the exact process on how to get you back in the system in a very painless manner
IRS Audit Technique Booklet
Audit Techniques Guides (ATGs)
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 (ATGs) 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.
The new fresh start initiative by Internal Revenue Service to relieve IRS Problems
The Internal Revenue Service has expanded its “Fresh Start” initiative to help struggling taxpayers who owe taxes. The following four tips explain the expanded relief for taxpayers.
Penalty Relief for IRS Problems
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 new 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:
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 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 or part pay agreements plans
Installment agreements are 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 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.
If your 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.
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 new offer in compromise program by the Internal Revenue Service
Offer in Compromise Under the first round of Fresh Start Program. 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 in compromise 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 our offices today to see if you qualify for an IRS tax settlement called an offer in compromise. We will evaluate your case for no charge and make sure you are qualified. Do not spend any money with attacks from going ahead and submitting an offer in compromise unless you are preapproved.
Call our team of tax attorneys, CPAs, or former IRS agents to learn more about the different tax options you have available for any IRS problem, unfiled or back tax returns or IRS tax settlement program.
IRS Problems – Owe Back Taxes, Back Tax Returns, Audits – Miami, Ft. Lauderdale, West Palm, the Florida Keys
by Fresh Start Tax | Feb 6, 2013 | Tax Help
Victims of Hurricane Sandy – IRS Extends Tax Relief to Some New Jersey and New York – Former IRS Agent
IRS Extends Tax Relief to Some New Jersey and New York Victims of Hurricane Sandy; Return Filing and Tax Payment Deadline Extended to April 1, 2013
IRS Tax Relief
In the aftermath of Hurricane Sandy, the Internal Revenue Service announced additional tax relief to affected individuals and businesses. The IRS is further extending tax deadlines of that relief until April 1 for the following localities:
a. In New Jersey (starting Oct. 26): Monmouth and Ocean counties.
b. In New York (starting Oct. 27): Nassau, Queens, Richmond and Suffolk counties.
Beyond the relief provided by law to taxpayers in the FEMA-designated counties, the IRS will work with any taxpayer who resides outside the disaster area but whose books, records or tax professional are located in the areas affected by Hurricane Sandy.
All workers assisting the relief activities in the covered disaster areas who are affiliated with a recognized government or philanthropic organization are eligible for relief. Taxpayers who live outside of the impacted area and think they may qualify for this relief need to contact the IRS at 866-562-5227.
Taxpayer Assistance Centers
The IRS also announced today that Taxpayer Assistance Centers in several New York and New Jersey locations will be open additional hours to provide help to taxpayers impacted by Hurricane Sandy.
There will also be special assistance available at several New Jersey and New York locations on Saturday, February 23 from 9 a.m. until 2 p.m.
The tax relief postpones various tax filing and payment deadlines that occurred starting in late October. As a result, affected individuals and businesses will have until April 1, 2013, to file these returns and pay any taxes due.
This includes the fourth quarter individual estimated tax payment, normally due Jan. 15, 2013.
It also includes payroll and excise tax returns and accompanying payments for the third and fourth quarters, normally due on Oct. 31, 2012 and Jan. 31, 2013 respectively, and calendar year corporate income tax returns due March 15.
It also applies to tax-exempt organizations required to file Form 990 series returns with an original or extended deadline falling during this period.
The IRS will abate any interest, late-payment or late-filing penalty that would otherwise apply.
The IRS automatically provides this relief to any taxpayer located in the disaster area. Taxpayers need not contact the IRS to get this relief.
The tax relief is part of a coordinated federal response to the damage caused by the hurricane and is based on local damage assessments by FEMA.
Victims of Hurricane Sandy – IRS Extends Tax Relief to Some New Jersey and New York – Former IRS Agent
by Fresh Start Tax | Feb 5, 2013 | Tax Help
How to Get IRS Forms and Publications
The Internal Revenue Service provides free tax forms and publications on a wide variety of topics from tax credits for individuals to a tax guide for small businesses.
Here are four easy ways to obtain tax forms and publications from the IRS:
1. On the Internet.
You can get IRS forms and instructions quickly and easily by visiting the IRS.gov website 24 hours a day 7 days a week.
They often appear online before they are available on paper. To view and download tax products, select “Forms and Pubs.”
2. By Telephone. Call 1-800-TAX-FORM (800-829-3676) Monday through Friday, 7:00 a.m. to 7:00 p.m. local time to order current or prior year forms and instructions or IRS publications.
Hours of service in Alaska and Hawaii follow Pacific Time. You will receive your order by mail, usually within 7 to 10 days.
3. In IRS Taxpayer Assistance Centers.
There are Taxpayer Assistance Centers located across the country where you can pick up many IRS forms and publications. IRS offices also offer face-to-face help for taxpayers who want personal tax assistance.
To find the Center nearest to you, visit IRS.gov and click on “Help & Resources” and then “Contact Your Local IRS Office.” Select your state for a list of offices, as well as a list of services available at each office. You can also find a Center near you by using the “Office Locator” link, which allows you to search by using your zip code.
4. In Your Community.
Many libraries and post offices offer free tax forms during the tax filing season. Some libraries also have copies of commonly requested IRS publications.
If you need tax help call us today for a no-cost professional tax consult.
For additional information about free IRS tax products and services, see Publication 2053A, Quick and Easy Access to IRS Tax Help and Forms, and Publication 910, IRS Guide to Free Tax Services.
Get all IRS Forms – Get Easy Tax Links – Former IRS Agents
by Fresh Start Tax | Feb 5, 2013 | Tax Help
Tax Preparation – How to Chose a Tax Preparer – Former IRS Agents – Ft.Lauderdale, Broward County 954-492-0088
Have former local IRS agents audit proof your tax return. We worked on the local South Florida offices for over 60 years.
Tips to Help You Choose a Tax Preparer
We are comprised of tax attorneys, CPAs and former IRS agents, managers and tax instructors.
We can prepare your tax returns and assure that you are paying the lowest tax dollar allowed by law. Contact us today for free tax consultation.
Many people look for help from professionals when it’s time to file their tax return. If you use a paid tax preparer to file your federal income tax return this year, the IRS urges you to choose that preparer carefully.
You are legally responsible for your tax return
Even if someone else prepares your return, you are legally responsible for what is on it.
Here are tips to keep in mind when choosing a tax return preparer:
1. Check the preparer’s qualifications.
All paid tax return preparers are required to have a Preparer Tax Identification Number. In addition to making sure they have a PTIN, ask if the preparer belongs to a professional organization and attends continuing education classes.
2. Check on the preparer’s history.
Check with the Better Business Bureau to see if the preparer has a questionable history. Also check for any disciplinary actions and for the status of their licenses. For certified public accountants, check with the state boards of accountancy. For attorneys, check with the state bar associations.
For enrolled agents, check with the IRS Office of Enrollment.
3. Ask about service fees.
Avoid tax preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers can. Also, always make sure any refund due is sent to you or deposited into an account in your name.
Taxpayers should not deposit their refund into a preparer’s bank account.
4. Ask to e-file your return.
Make sure your preparer offers IRS e-file. Any paid preparer who prepares and files more than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return. IRS has safely and securely processed more than one billion individual tax returns since the debut of electronic filing in 1990.
5. Make sure the preparer is accessible.
Make sure you will be able to contact the tax preparer after you file your return, even after the April 15 due date. This may be helpful in the event questions arise about your tax return.
6. Provide records and receipts.
Reputable preparers will request to see your records and receipts. They will ask you questions to determine your total income and your qualifications for deductions, credits and other items.
Do not use a preparer who is willing to e-file your return by using your last pay stub before you receive your Form W-2. This is against IRS e-file rules.
7. Never sign a blank return.
Avoid tax preparers that ask you to sign a blank tax form.
8. Review the entire return before signing.
Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it. Remember you are completely responsible for the information on the tax return.
9. Make sure the preparer signs and includes their PTIN.
A paid preparer must sign the return and include their PTIN as required by law. The preparer must also give you a copy of the return.
10. Report abusive tax preparers to the IRS.
You can report abusive tax preparers and suspected tax fraud to the IRS on Form 14157, Complaint: Tax Return Preparer. If you suspect a return preparer filed or altered a return without your consent, you should also file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit.
Tax Preparation – How to Chose a Tax Preparer – Former IRS Agents – South Florida, Broward County
