Help with Income Tax Problems –  Audits, Negotiations, Settlements
If you need help with income tax problems you should call the professionals at  Fresh Start Tax LLC.
You can speak directly with Tax Attorneys, CPAs, or former IRS Agents and Managers.
We have over  60 years of direct tax experience working at the IRS in the local, district, and regional tax offices of the Internal Revenue Service.
We also taught tax law to new IRS agents.
We are tax specialty firm that deals with all areas of income tax problem.
We handle IRS tax audits, tax negotiations, tax appeals, and IRS tax settlements. All work is done in-house.
We have been in private practice since 1982 before starting our Internet company.
You can contact us today for free tax consultation and we will be able to put your mind at ease with any issue that you may be having.
IRS tax audits
IRS audits about 1% of all income tax returns.
They do so through mail correspondence, IRS office audits, or through IRS revenue agents. If you feel you have a very small matter  and have no skeletons in the closet we recommend you handle the problem all by yourself.
For any matter that requires negotiation or any area that you feel uncomfortable about you should always contact a tax professional.  If there are some real issues you have or have some real skeletons you should never ever go into IRS unrepresented.
 Regarding IRS negotiations attack settlements.
If you owe IRS back taxes there are one of three available tax options.
Anyone who owes back taxes are required to fill out a financial statement along with all the documentation to match the numbers on that given financial statement.
After IRS reviews the financial statement the IRS will make you determination to put your case in a:
1. tax hardship,
2.installment agreement, or
3. may recommend an IRS tax settlement called and offered compromise.
IRS will be hitting the Tax Gap hard in the upcoming years.
What is the Tax Gap?
The tax gap is the difference between taxes owed and taxes paid to the IRS.
The Internal Revenue Service estimates that over the past thirty years the tax gap has ranged from 16 to 20 percent of total tax liability. I personally believe it is much higher. For 2012, the IRS estimates the gross tax gap at $345 billion, or slightly over 16 percent of tax liability, of which $55 billion will eventually be recovered through voluntary late payments and enforcement activities, leaving a net tax gap of about $290 billion.
Some tax experts view the tax gap as a major revenue source that can be used to close the federal budget deficit or to pay for reform of the alternative minimum tax, without raising taxes.
The potential revenue gains from proposals to improve enforcement  can result in a large income stream to the United States government.
IRS is starting to put in place measures that will alert IRS of non-filers and ways to spot the delinquent activity. In one report I have read recently there is an estimate of 55% of all self employed businesses that do not report all their income to the Internal Revenue Service. IRS understands this is a huge problem and is awaiting manpower to go ahead and address this issue.
Non filing and underpayment of reported taxes account for less than 20 percent of the gross tax gap;,under reporting on timely filed tax returns makes up the bulk of the gap.
Under reporting on individual income tax returns alone accounted for about 70% of the gross tax gap in 2001.
Over 70% of under reported individual tax is for business and self-employment income which the IRS has no easy way to verify independently.
Only 11%  percent of the under reporting gap is attributable to corporate income tax, and only 1.4 percent to the estate tax and excise taxes.
Individual income taxpayers fail to report about 54 percent of income from sources for which there is no information reporting, such as sole proprietorships.
In contrast, less than 5 percent of income from easily verified sources-interest, dividends, and pensions-goes unreported.
Help with Income Tax Problems –  Audits, Negotiations, Settlements