Affordable IRS Tax Audit Help, Tax Audit Defense – Former IRS Agents, Since 1982      1-866-700-1040

We have 205 years of direct tax experience, 65 years of working for the IRS in the local, district and regional offices. We worked as Agents, Instructors and in IRS Management.

We know the settlement techniques and formulas to save your money.

Be worry free, call us today. 1-866-700-1040

We are one of the nations most experienced IRS Tax audit defense help firms.

It only makes sense to have Former IRS Agents and IRS Tax Audit Managers handle your IRS tax audit and give you the most experienced and successful IRS Tax Audit Help.

With or without tax with or without tax records reconstruction is possible.

If the Internal Revenue Service has set up a tax audit against you and has disallowed expenses because you had no receipts or no records the Cohan rule may be applicable.

If you have just received a letter and you’re going in for an IRS audit call us and talk to us about the best way to have a tax audit defense.

If you have already been audited you could ask for an IRS audit reconsideration.

What is a Audit Reconsideration’s

You got a notice from the IRS saying your tax return was audited (or the IRS created a return for you) and you owe taxes, and you disagree with the tax the IRS says that you owe.

In any of the four situations below, you can request an Audit Reconsideration – a process that reopens your audit with the IRS.

• You have new information about the audit

• You disagree with the tax the IRS says you owe

• You never appeared for the audit conference or sent the IRS any information

• You moved and never got the audit notice in the first place
You can’t request reconsideration if:

• You’ve already paid the full amount you owe. In that case, you must file a formal claim for refund with an Amended Return.

• You previously agreed to pay the amount you owe by signing an agreement such as a Form 906, Closing Agreement; an offer in compromise agreement; or an agreement on Form 870-AD with the Office of Appeals.

• The United States Tax Court, or another court, has issued a final determination that you owe the tax.

More about lost records and receipts below.

The Cohan Rule

Cohan rule is a  rule applicable in tax law.

According to this rule, a taxpayer may approximate travel and entertainment expenses when no records exist, provided the taxpayer has taken all possible steps to provide documentation.

The standard was set in the case Cohan v. Commissioner, 39 F.2d 540 (2 d. Cir. 1930) in which the court held that the tax court may make a reasonable estimate of the allowable deduction, “bearing heavily if it chooses upon the taxpayer whose inexactitude is of his own making.”

The Cohan rule has been superseded since by section 274(d) of the Internal Revenue Code, which now governs the deductibility of entertainment and travel expenses.

Since 1962, travel and entertainment expenses have been only partly deductible and must be carefully documented. Here is where the experience of former IRS agents can help.

Some types of examples of using the Cohan rule:

• A mileage log:

Can be recreated if the basis for it is reasonable.

•  A calendar

showing your calendar can be a reasonable basis for where you were and the types of travel expenses that may be allowed.

• testimony

Can be valuable support for the reconstructed support.You can make statements under penalties of perjury.

• statement from others

Others can provide written supporting documentation as to where you weren’t things you did, meeting times and places.

So, who was George Cohan?

Cohan was a 1920’s vaudevillian who is probably most known to modern audiences as the man who wrote songs

“I’m a Yankee Doodle Dandy, Grand Old Flag and Give my Regards to Broadway”

Known in the decade before World War I as “the man who owned Broadway”, he is considered the father of American musical comedy.

His life and music were depicted in the Academy Award-winning film Yankee Doodle Dandy (1942) and the 1968 musical George M!.

A statue of Cohan in Times Square in New York City commemorates his contributions to American musical theatre.

however Cohan is better known for being the plaintiff in one of the most famous and enduring tax cases in ever American in history.

Cohan was audited and unable to produce receipts that showed the actual amount he spent for certain business expenses.

The IRS laid down the hammer and said” if you can’t prove how much you spent, you don’t get the deduction.”Kinda sounds like them.

The Cohan Rule as it has come to be known, stands for the theory that taxpayers may or can use estimates when they can show that there is some sort of factual foundation on which to base a reasonable approximation of the expense  when taxpayers can prove that they had made a deductible expenditure but just cannot prove how much that expenditure might have been. A good majority of taxpayers are not good record keepers.

It changed the way IRS audits are handled when records or receipts are missing.

The  Judge in the matter, got to lave the name, Judge Learned Hand

Circuit Court Judge Learned Hand said in an opinion that has been part of our common law for more than three-quarters of a century:

In the production of his plays Cohan was obliged to be free-handed in entertaining actors, employees, and, as he naively adds dramatic critics. He had also to travel much, at times with his attorney.

These expenses amounted to substantial sums, but he kept no account and probably could not have done so. At the trial before the Board he estimated that he had spent eleven thousand dollars in this fashion during the first six months of 1921, twenty-two thousand dollars, between July first, 1921 and June thirtieth, 1922, and as much for his following fiscal year, fifty-five thousand dollars in all.

The Board refused to allow him any part of this, on the ground that it was impossible to tell how much he had in fact spent, in the absence of any items or details. The question is how far this refusal is justified, in view of the finding that he had spent much and that the sums were allowable expenses. Absolute certainty in such matters is usually impossible and is not necessary; the Board should make as close an approximation as it can, bearing heavily if it chooses upon the taxpayer whose inexactitude is of his own making. But to allow nothing at all appears to us inconsistent with saying that something was spent.

True, we do not know how many trips Cohan made, nor how large his entertainments were; yet there was obviously some basis for computation, if necessary by drawing upon the Board’s personal estimates of the minimum of such expenses.

The amount may be trivial and unsatisfactory, but there was basis for some allowance, and it was wrong to refuse any, even though it were the traveling expenses of a single trip. It is not fatal that the result will inevitably be speculative; many important decisions must be such.

We think that the Board was in error as to this and must reconsider the evidence.

And the rest is tax history.

IRS Tax Audit Help + No Receipts, Lost Receipts + No Problem