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 | Apr 1, 2013 | FBAR
FBAR Filing Assistance – Tax Attorneys, Lawyers, Former IRS – FBAR Confidential Filing 1-866-700-1040
FBAR Filing Help is here in the way of Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents.
If you have a sensitive FBAR Filing call us today and speak directly to Attorneys and Lawyers who can keep your conversation covered by privilege.
For simple FBAR filings go directly to IRS.gov and download the forms directly.
If you have issues that could arouse the interest of the IRS always be represented by Counsel.
Assistance Filing Criteria for FBAR
Taxpayer FBAR filers report on their accounts to the IRS.
Filers report their foreign accounts by:
1.completing boxes 7a and 7b on Form 1040 Schedule B, box 3 on the Form 1041 “Other Information” section, box 10 on Form 1065 Schedule B, or boxes 6a and 6b on Form 1120 Schedule N and.
2. completing Form TD F 90-22.1 (PDF).
Due Date for FBAR Filing ?
The FBAR is due by June 30 of the year following the year that the account holder meets the $10,000 threshold.
The granting by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR.
FBAR Filers cannot request an extension of the FBAR due date. There is no provision in the code to do so.
Best Advice
If a filer does not have all the available information to file the return by June 30, they should file as complete a return as they can and amend the document when the additional or new information becomes available.
Where are FBAR Filing forms?
FBAR forms are available:
Online via IRS.gov in PDF.
Online via Department of the Treasury’s Financial Crimes Enforcement Network Web site in PDF
OR
By calling the IRS at 800-829-3676.
IRS has an Email address to ask questions, but be very careful!
You can send questions concerning the FBAR to FBARquestions@irs.gov. The email system does not accept actual FBAR reports.
Where can I file the FBAR?
You can send completed forms to:
U.S. Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621
If an express delivery service is used, send completed forms to:
IRS Enterprise Computing Center
ATTN: CTR Operations Mail room, 4th Floor
985 Michigan Avenue
Detroit, MI 48226
The contact phone number for the delivery messenger service is 313-234-1062.
The number cannot be used to confirm that your FBAR was received.
The FBAR is not to be filed with the filer’s Federal tax return
.
Can I verify that my FBAR was filed?
Ninety days (90 ) after the date of filing, the filer can request verification that the FBAR was received.
An FBAR filing verification request may be made by calling 866-270-0733 and selecting option 1. Up to five documents may be verified over the phone.
There is no fee for this verification.
Alternatively, an FBAR filing verification request may be made in writing and must include the filer’s name, taxpayer identification number and the filing period.
There is a $5 fee for verifying five or fewer FBARs and a $1 fee for each additional FBAR. A copy of the filed FBAR can be obtained at a cost of $0.15 per page.
Check or money order should be made payable to the United States Treasury.
The request and payment should be mailed to:
IRS Enterprise Computing Center/Detroit
ATTN: Verification
P.O. Box 32063
Detroit, MI 48232
FBAR Filing Assistance – Tax Attorneys, Lawyers, Former IRS – Confidential FBAR Filing
by steve | Jul 20, 2011 | IRS Tax Advice, Tax News
Have Tax Attorneys and Tax Lawyers and Former IRS Agents get your money back, today.
Fresh Start Tax L.L.C. A Professional Tax Firm Since 1982 IRS Tax Experts A Plus Professional Tax Firm
Do you need to get a Bank/Wage Levy Released? We can get immediate releases of Bank and Wage Levies!
We taught Tax Law at the IRS.
We can get these levies released because of our vast working knowledge of the IRS system. We are comprised of Board Certified Tax Attorneys, CPA’s and Former IRS Agents, Managers and Instructors who have over 60 years of working for the IRS in the local, district and regional offices of the IRS.
We know all the policies, procedures, and tax settlement formulas because we taught them at the IRS. We are true Tax Experts!
Our Company Resume: ( Since 1982 )
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How we immediately get Notices of Bank Levy and Bank Garnishment Released.
As former IRS Agents, Managers and Instructors we have issued thousands of IRS Wage/Garnishment and Bank Levies. We know exactly how to quickly get them released. We have what it takes.
1. We immediately send a power of attorney to the IRS letting them know we are now your representative. You will never have to speak to them.
2. We will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case. This is leverage that they use to get you compliant. We can pull tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records.
3. The IRS requires a current financial statement. We will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement. The IRS will require a closing settlement method for each case.
4. We review with our clients how they want to settle their case. We get them an agreement based on their current financial needs.
Settlement agreements can be in different forms:
a. Hardship Settlements. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship.
b. Payment Agreements. Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required.
c. Offer in Compromise. There are three types of OICs:
The IRS may accept an Offer in Compromise based on three grounds:
1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:
(1) the examiner made a mistake interpreting the law,
(2) the examiner failed to consider the taxpayer’s evidence or
(3) the taxpayer has new evidence.
3. Effective Tax Administration – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
