by Fresh Start Tax | Jun 5, 2013 | Sales Tax
Affordable, experienced Sales Tax Audit – Affordable Attorneys, Lawyers, CPA’s, Former Agents Since 1982. 954-492-0088
We are local affordable South Florida Sales tax experts in dealing with the Florida Department of Revenue.
With over 206 years of total firm experience we are one of the most reputable tax firms in dealing with sales tax issues and the Department of Revenue in the state of Florida.
If you are having a tax issue or tax problem with the state of Florida, Department of revenue sales and use tax, contact us today for free initial tax consultation.
You will speak directly to tax attorneys, certified public accountants or former agents who can help you with any Florida sales or use tax situation that you have.
We are experts in Florida sales tax audits, tax settlements, and all areas of tax negotiations.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982.
We are available for no cost initial tax consultation. We are the fast and friendly and affordable tax firm.
Why were you selected for a State of Florida Sales Tax Audit
The state of Florida audits taxpayers for many reasons some of those are the following:
- Enforce Florida tax laws uniformly to all industries and persons,
- Deter tax evasion statewide,
- Promote voluntary compliance within the state of Florida,
- Educate taxpayers and make sure they are following the tax laws correctly.
While the State of Florida accepts most Sales and Use tax returns as filed they audit some returns to verify accuracy and evaluate compliance. There are a certain number of tax returns that must be audited and this is determined by the budget given the Department of revenue.
Sales Tax Audits do not always result in the taxpayer owing additional tax, penalty or interest. Surprisingly many sales tax audit winds up as “no changes”.
Many times the State auditor may adjust a credit carryover or correct distribution without assessing additional tax. The auditor may even determine that a refund is due.
How Are Taxpayers Selected for State of Florida, Sales and Use Audit?
Some of the methods for selecting a business or individual to audit vary from tax to tax.
Here are some examples of sources we use to identify a potential audit candidate:
- Internal Revenue Service information provided to the state,
- Information sharing programs with other states and state agencies,
- Computer-based random selection,
- Analysis of Florida tax return information.
- Business publications, periodicals, journals, directories and information received from third parties.
What Types of Records Will I Need to Provide during the Sales Tax Audit?
When the State notifies you of our intent to audit records, we will also tell you what records you will need to provide. The types of records may include, but are not limited to:
- General ledgers and journals,
- Cash receipt and disbursement journals,
- Purchase and sales journals,
- Sales tax exemption or resale certificates,
- Other documentation to verify amounts entered on tax returns. Remember that each tax auditor is different and each state tax auditor looks at each case differently to their eyes.
Record-keeping requirements that are necessary
You must keep your records for three 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.
What Are My Rights During an Florida State Tax Audit?
The Florida Taxpayer’s Bill of Rights provides protection for taxpayers’ privacy and assets during their interactions with Revenue employees.
Some of your taxpayers rights include:
- The right to fair treatment,
- The right to get available information and prompt, accurate responses to your questions,
- The right to have the Department begin and complete its audit in a timely manner after we notify you of our intent to audit,
- The right to get simple, nontechnical statements which explain the reason for audit selection and the procedures, remedies, and rights available during audit, appeals, and collection proceedings.
Communicating and Meeting Deadlines
Throughout the Sales Tax audit process, communication is vital.
After the auditor sends you a Notice of Intent to Audit Books and Records, the auditor will work with you to set a date to begin the audit.
The auditor will give you deadlines for providing information or documentation. If you need additional time to prepare, or need to request a delay for other reasons, contact the auditor.
The auditor will make every effort to accommodate your requests. If you fail to respond or provide the requested information, we may issue an assessment and file a warrant based on the best available information.
Remember there are number two audits alike. Each sales tax audit is shaped by the tax return and the tax auditor.
As former IRS agents and tax auditors the best advice that we can give you is never to lie to any federal or state tax agent and is always in your best interest to hire a professional firm to get the best results.
There is a huge difference in the results when taxpayers attempt to settle these cases versus the tax professionals.
When you’re hiring a tax firm always check out their Better Business Bureau rating and always speak to the person that will be handling your sales tax audit.
Special Note of Interest
The Department of revenue many times uses a criminal approach to collect monies from businesses that own back sales tax. With the threat of criminal prosecution the Florida Department of revenue will conduct investigations prompting some of these individuals and businesses to pay the tax in full. And it works.
If you are under criminal investigation or you have received a notice from the Florida Department of revenue about a possible criminal investigation it is in your best interest to immediately seek a tax attorney or tax lawyer who specializes in Florida state sales tax. Contact us today and you can keep all your information you give us under attorney-client privilege.
West Palm Beach – Sales Tax Audit – Affordable Attorneys, Lawyers, CPA’s, Former Agents – Florida Sales and Use Tax Audits
by Fresh Start Tax | Jun 4, 2013 | IRS Tax Audit
IRS Audit – Tax Audit – Affordable Attorneys, Lawyers, CPA’s, Former IRS
We are a local South Florida tax firm that specializes in IRS tax audits.
We have over 60 years of direct working experience and knowledge of the local South Florida Internal Revenue Service.
As a result of all our years of experience at the Internal Revenue Service we know all the IRS audit techniques, IRS audit protocols, and all the IRS tax audit settlement formulas.
Beside working as IRS auditors, and revenue agents some on our staff have also worked in the IRS appeals offices.
We are one of the most experienced tax firms in South Florida handling the IRS tax audit
We have been in private practice since 1982 right here in South Florida and have a A+ rating by the Better Business Bureau.
We are available for a free initial tax consultation and will conduct a free analysis of any tax audit you may be going through.
Do not be worried or stress as a result of an IRS tax audit.
The hiring of any professional tax firm should surely ease the consequence of any tax issues that may arise as a result of the Internal Revenue Service auditing any income, business or corporate tax return.
Some Commonly asked Questions for the IRS Tax Audit
Why was my return selected for audit?
When 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.
- 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.
- In-Person Audits are audits conducted either at a local IRS office or at your business location.
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. being a former IRS agent and instructor is always best to hold the IRS tax audit at the location of your tax professional who is handling your IRS tax audit. I never recommend the IRS going to your home or place of business.
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.
IRS has the right to refuse to transfer the tax audit if it feels that the taxpayer or the tax professional is trying to stall the tax audit.
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.
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.
How far Back can the IRS go Back on a IRS Tax Audit
As a general rule, 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.
Statute of Limitations
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 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.
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 examiner may not be able to consider additional adjustments, such as expenses, that could lower the amount of tax due.
IRS Facts for Tax Audits
The IRS audits about 1 percent of the individual tax returns.
- 143.4 million: Individual federal tax returns filed in 2011.
- 1.4 million: Individual tax returns examined by the IRS, resulting in notices being mailed or in-person audits.
- 90 percent: Tax returns audited in person resulting in a recommended change in taxes.
- 85 percent: Tax returns audited via mail resulting in a recommended change.
- $15.1 billion: Amount of recommended additional taxes from the audits.
- $16,851: Average recommended additional taxes per in-person audit.
- $8,241: Average recommended additional taxes per mail audit.
This Source material is from the 2012 Internal Revenue Service Data Book.
IRS Audit – Tax Audit – Affordable Attorneys, Lawyers, CPA’s, Former IRS – Tax Audit Experts – Miami, Ft.Lauderdale, West Palm Beach, Boca
by Fresh Start Tax | Jun 3, 2013 | IRS Tax Audit
Federal Tax Audits – Affordable Expert Representation 1-866-700-1040
We are local tax experts practicing right here in South Florida since 1982.Free initial tax consultations.
We have a combined 60 years of direct IRS work experience in the local South Florida tax offices. As former IRS employees we worked in a local, district, and regional tax offices of the IRS.
We worked as supervisors, managers, and taught tax law and the local, district, and regional tax offices. We are the real deal and we are affordable.
If you are going to undergo a federal tax audit it only makes sense to hire former IRS agents, managers and tax instructors who know all the inner workings of the Internal Revenue Service.
With over a combined 60 years of IRS experience we are one of the most experienced tax firms, we can represent taxpayers in all 50 states for IRS federal tax audits.
We are comprised of tax attorneys, tax lawyers, certified public accountants, enrolled agents, and former IRS agents.
As former IRS auditors and managers we know all the protocols, all systems, and all the settlement formulas and techniques to marginalize any IRS tax audit.
While working at Internal Revenue Service we taught tax law.
We are A+ rated by the Better Business Bureau and been in private practice since 1982.
We are experts when it comes to IRS federal tax audits. We are the affordable tax firm.
Why a IRS Federal Tax audit
IRS examines federal tax returns to verify that the tax reported is correct.
Selecting a return for examination does not always suggest that the taxpayer has either made an error or been dishonest.
In fact, some IRS tax examinations result in a refund to the taxpayer or acceptance of the return without change.
The overwhelming majority of taxpayers files 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.
How do you when to hire a tax professional or do it yourself
Being a former IRS agent I can tell you that there are times that taxpayers may represent themselves during an IRS federal tax audit.
The rule of thumb is quite simple, if you have a clean tax return and have all documentation by all means represent yourself during an IRS Federal tax audit.
If you have any issues, concerns, or problems that you think may arise it is absolutely in your best interest to hire a certified local tax professional. You should always meet the person face to face who will be handling your IRS federal tax audit defense.
Your Taxpayer Rights
The IRS trains its employees to explain and protect taxpayers’ rights throughout their contacts with taxpayers.
These rights include:
1. A right to professional and courteous treatment by IRS employees.
2. A right to privacy and confidentiality about tax matters.
3. 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.
4. A right to representation, by oneself or an authorized representative.
5. A right to appeal disagreements, both within the IRS and before the courts.
How Federal Tax Returns Are Selected for Examination
The IRS selects returns using a variety of methods, including:
- 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.
- Computer Scoring — Some 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.
- Large Corporations — The IRS examines many large corporate returns annually.
- Information Matching — 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. 1.4 million tax returns are audited via this information matching method.
- Related Examinations — Federal 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 — 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. Each district in each region has specialized tax audits. Many times these are referred to as the market specialization program.
Federal IRS Examination Methods
An IRS Federal 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 auditor will explain the reason for any proposed changes. Most taxpayers agree to the changes and the audits end at that level.
IRS Federal Appeal Rights
IRS Federal 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.
IRS Federal Tax Audits – Affordable Attorneys, Lawyers, CPA’s, Former IRS – Miami, Ft.Lauderdale, Palm Beaches – South Florida
by Fresh Start Tax | May 31, 2013 | Tax Help
Affordable SALES TAX HELP, PROBLEMS
We have handled thousands of cases for South Floridians and since 1982.
We handle all cases no matter what the size.
We handle all civil or criminal tax problems and dealing with the State of Florida Department of Revenue.
We handle issues including Sales and Use tax audits, the settlement of tax warrants and the filing of back state tax returns.
You will never speak to a federal or state agent. We handle all the paperwork and all the communication.
All our work is done in-house by experienced tax professionals.
We are fast, efficient and affordable and know every tax solution available to any taxpayer or business. Because of our years of experience of working in this field and industry, and because of our hands work experience with the federal and State government, we know every tax strategy and tax option that is available to get you a favorable tax result.
Trust your case to a professional tax firm that has been practicing since 1982 right here in South Florida. Come by and visit us for free initial tax consultation.
We have over 206 years of professional tax experience in over 60 years of working directly for government agencies that deal with both federal and state and sales tax issues.
We are A+ rated by the Better Business Bureau have been in private practice writer in South Florida since 1982.
Areas of Professional Tax Representation
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- Full Service Accounting Tax Firm,
- 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” Plus
- 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
Areas of Professional Tax Practice:
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- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
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- 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
- Affordable Sales Tax Help,Problems
Contact us for a no cost professional tax consult and stop the worry.
Miami, Ft.Lauderdale, Palm Beaches – Affordable SALES TAX HELP, PROBLEMS – Attorneys, CPA’s, Former Agents
by Fresh Start Tax | May 31, 2013 | Tax Help
Affordable Attorneys, Lawyers, CPA’s – IRS & State Resolution
We are a local South Florida tax firm that specializes and IRS and state tax problems, tax settlements and tax audit resolutions.
We have been in private practice in South Florida since 1982 and are A+ rated by the Better Business Bureau.
We have over 206 years of combined firm experience and over 60 years of working directly for the Internal Revenue Service in the local South Florida tax offices.
We are A+ rated by the Better Business Bureau and are available for free tax consultation to show you various options and solutions on how to resolve your IRS or state of Florida tax matter.
We are affordable and assessable.
Do not be bullied by any federal or state tax agency, fight back with true state and federal tax experts.
At Fresh Start Tax you hire a team not an individual.
With our years of federal and state tax experience we can resolve your problem so you can stop the worry, anxiety and the stress that you are currently under.
Areas of Professional Tax Representation
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- Full Service Accounting Tax Firm,
- 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” Plus
- 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
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
Florida – Affordable Attorneys, Lawyers, CPA’s – IRS & State Tax Problems, Settlements, Audits – Miami, Ft.Lauderdale, Palm Beaches
