by Fresh Start Tax | Jun 4, 2013 | IRS Tax Audit
Former IRS Agents, Managers for IRS Tax Audit
We are a local South Florida tax firm that specializes in IRS tax audits and IRS tax settlements.
It only makes sense if you are undergoing an IRS tax audit to hire former IRS agents and managers who have over 60 years of working directly in the local South Florida IRS offices.
As a result of all our years of experience in the local South Florida Internal Revenue Service, we know all the IRS audit techniques, IRS audit protocols, and all the IRS tax audit settlement formulas.
As former IRS agents and managers we taught new IRS agents their job therefore we know every single technique that will be used by the Internal Revenue Service.
Beside working as IRS auditors and revenue agents some on our staff have also worked in the IRS appeals offices.
We also are staffed with tax attorneys, tax lawyers and certified public accountants for more complicated matters.
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.
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.
IRS Use Audit Techniques Guides for Business Tax audits.
If you are going to experience in IRS business tax audit there are certain audit techniques that the IRS will follow. Most professional tax firms understand these audit technique guides. You can find these on a technique guides on our website or contact us directly to learn more.
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 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. By following the same format that IRS uses for an IRS tax examination you can move forward worry free knowing you are following the exact rules and protocol set up by the Internal Revenue Service.
Commonly asked Questions for the IRS Tax Audits, both Individual and Business
Why was my individual or business tax 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 individual or business tax 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 local tax group, the return is reviewed by the manager. The manager has the right to survey the case which means it has the right to tell the service center this is not a worthy tax return for an IRS tax audit.
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 income or business 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 tax audit be conducted at the IRS office instead of at your place of business?
If the income or business tax 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. You should follow the advice of the tax professional you hire to handle your IRS income or business tax audit.
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 tax records be kept?
Generally, payroll tax 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.
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. IRS is making every effort to audit returns much quicker. The IRS is attempting to put IRS audit triggers in place to capture tax cheats in real time.
Statute of Limitations on IRS Income and business tax audits
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 of Income and Business 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. The public has a right to look at any information regarding IRS statistics. Simply go online to IRS.gov and you will find a wealth of information.
Contact us today for free initial consultation if you are going a IRS income or business tax audit.
You can speak directly to former IRS agents and instructors who know the exact systems and protocols of an IRS tax audit.
We are the affordable tax firm.
Former IRS Agents, Managers for IRS Individual, Business Tax Audits – Ft.Lauderdale, Miami, Palm Beaches, Boca – South Florida
by Fresh Start Tax | Jun 3, 2013 | Tax Audit
IRS Help – Tax Audit Representation 954-492-0088
There is nobody better to help defend an IRS tax audit than a former local IRS agents, managers or tax instructors.
Since we were trained by the Internal Revenue Service we know all the IRS tax audit protocols, the IRS tax audit systems, and all the IRS tax audit settlement formulas.
We have represented thousands of taxpayers before the Internal Revenue Service right here in South Florida and you should let that experience work for you.
Not only were we former IRS agents, and managers we also taught tax law at the Internal Revenue Service. We are experts for IRS Tax Help for tax Audit Representation.
As some practical advice, before you make a decision to hire an IRS tax audit representative for IRS tax help, make sure you personally meet and talk directly to the tax professional who will be working your case. Find out for yourself about their work experience, their ethic and their fees.
Common questions asked by clients
Does filing an amended return affect the return selection process?
Filing an amended return does not affect the selection process of the original return. However, amended returns also go through a screening process and the amended return may be selected for audit. If you have found an error in your tax return it is important you correct your return and file an amended 1040 X.
Why was my tax return selected for tax 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 tax returns are selected as part of the National Research Program which the IRS conducts to update return selection information.
The tax 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. Many times the manager will not schedule the tax at an all because of high inventories in the local offices.
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 IRS Tax 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.
It is always best to hire a tax professional and transfer your books and records to the office of the tax representative that you have hired.
As a former IRS agent I would never recommend any taxpayer ever have an audit conducted at their house, office, 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. A decision is made on a case-by-case basis and there is no rule of thumb.
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 IRS 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 to audit my back tax return, The Statute of Limitations.
Generally, 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.
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 IRS tax 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 Help – Tax Audit Representation – Affordable Former IRS Agents – Ft.Lauderdale, Miami, Palm Beaches – Audit Experts
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:
- 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
- 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 30, 2013 | Offer in Compromise
IRS Tax Settlement South Florida 954-492-0088
58,000 IRS Tax Settlements are filed each year and about 30% are accepted.
The average time to process, 6- 9 months.
We are a local professional tax firm who are true IRS experts when it comes to any IRS collection, audit, or appeals matters.
We are comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors who worked out of the local South Florida IRS offices for a combined 60 years.
While working for the Internal Revenue Service in the local South Florida offices as well as the regional tax offices we taught tax law.
We are true IRS experts when it comes to IRS settlement matters.
We have a former IRS revenue officer on staff who taught the IRS offer in compromise program or what is better known as the IRS tax settlement procedure.
Get Pre-Qualified to File for a IRS Tax Settlement
Before any offer in compromise or any IRS tax settlement is turned into the Internal Revenue Service it goes through a pre-qualifier with our firm to make sure that any taxpayer, individual, or business is a suitable and candidate and has an excellent chance of their offer getting accepted.
We will submit no offer in compromise unless you have a reasonable chance of acceptance.
Contact us today for free initial tax consultation and we will go over the various tax options with you to get you the most affordable IRS tax settlement.
We have practiced in South Florida since 1982 and are A+ rated by the Better Business Bureau. We have over 206 years of professional from experience.
What is a IRS Tax Settlement
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
IRS will consider your unique set of facts and circumstances:
The Internal Revenue Service will generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.
You should explore all other payment options before submitting an offer in compromise.
Clearly, the Offer in Compromise program is not for everyone.
If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.
Make sure you are eligible will for a IRS Tax Settlement
Before the can consider your offer, you must be current with all filing and payment requirements.
You are not eligible if you are in an open bankruptcy proceeding. Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.You can find this tool on our website.
Submit your IRS Tax Settlement
You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF).
Your completed offer package will include:
- Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;
- Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;
- $150 application fee (non-refundable); and
- Initial payment (non-refundable) for each Form 656.
Select a payment option for a IRS Tax Settlement
Your initial payment will vary based on your offer and the payment option you choose:
- Lump Sum Cash:Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
- Periodic Payment: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
Low Income Certification
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer. See your application package for details.
Understand the process IRS Tax Settlement Process
While your offer is being evaluated:
- Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
- A Notice of Federal Tax Lien may be filed;
- Other collection activities are suspended;
- The legal assessment and collection period is extended;
- Make all required payments associated with your offer;
- You are not required to make payments on an existing installment agreement; and
- Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Remember a IRS tax settlement is not for everyone.
It is always best to contact a tax attorney, certified public accountant, or former IRS agent or manager to have your very best chance of getting your IRS tax settlement approved by the Internal Revenue Service.
Contact us today for free initial tax consultation.
Affordable IRS Tax Settlement Attorneys, Former IRS – Ft.Lauderdale, Miami, Boca, West Palm Beach, South Florida
by Fresh Start Tax | May 30, 2013 | Tax Help
Tax Relief – South Florida 954-492-0088
We are a local South Florida tax from that specializes in IRS tax relief.
We are comprised of tax attorneys, tax lawyers, certified public accountants, in former IRS agents, managers, and tax instructors.
Our former IRS agents worked out of the local South Florida IRS offices for a combined 60 years. While at the Internal Revenue Service we were managers, supervisors and taught tax law the new IRS agents.
As a result of our years of experience at the Internal Revenue Service, we know all the protocols, all the procedures, all settlements strategies, and all the various tax options to get you immediate and permanent tax relief.
We’ve been practicing right here in South Florida since 1982 and we are A+ rated by the Better Business Bureau.
Please contact us today for a free initial tax consultation so we can review with you the various solutions to completely solve your IRS problems.
We are fast and we are affordable.
Tax Relief from the IRS
In its latest effort to help struggling taxpayers, the Internal Revenue Service announced a series of new steps to help people get a fresh start with their tax liabilities.
The goal is to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers.
Specifically, the IRS is announcing new policies and programs to help taxpayers pay back taxes and avoid tax liens.
This announcement centers on the IRS making important changes to its lien filing practices that will lessen the negative impact on taxpayers.
The changes include:
- Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.
- Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
- Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement.
- Creating easier access to Installment Agreements for more struggling small businesses.
- Expanding a streamlined Offer in Compromise program to cover more taxpayers.
Tax Lien Thresholds
The IRS will significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is in keeping with inflationary changes since the number was last revised.
Currently, liens are automatically filed at certain dollar levels for people with past-due balances.
The IRS plans to review the results and impact of the lien threshold change in about a year.
A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. Filing a Notice of Federal Tax Lien is necessary to establish priority rights against certain other creditors.
Usually the government is not the only creditor to whom the taxpayer owes money.
A lien informs the public that the U.S. government has a claim against all property, and any rights to property, of the taxpayer. This includes property owned at the time the notice of lien is filed and any acquired thereafter.
A lien can affect a taxpayer’s credit rating, so it is critical to arrange the payment of taxes as quickly as possible.
Tax Relief – Tax Lien Withdrawals
The IRS will also modify procedures that will make it easier for taxpayers to obtain lien withdrawals.
Liens will now be withdrawn once full payment of taxes is made if the taxpayer requests it. The IRS has determined that this approach is in the best interest of the government.
In order to speed the withdrawal process, the IRS will also streamline its internal procedures to allow collection personnel to withdraw the liens.
Tax Relief – Direct Debit Installment Agreements and Liens
The IRS is making other fundamental changes to liens in cases where taxpayers enter into a Direct Debit Installment Agreement (DDIA). For taxpayers with unpaid assessments of $25,000 or less, the IRS will now allow lien withdrawals under several scenarios:
Lien withdrawals for taxpayers entering into a Direct Debit Installment Agreement.
The IRS will withdraw a lien if a taxpayer on a regular Installment Agreement converts to a Direct Debit Installment Agreement.
The IRS will also withdraw liens on existing Direct Debit Installment agreements upon taxpayer request.
Liens will be withdrawn after a probationary period demonstrating that direct debit payments will be honored.
In addition, this lowers user fees and saves the government money from mailing monthly payment notices. Taxpayers can use the Online Payment Agreement application on IRS.gov to set-up with Direct Debit Installment Agreements.
Tax Relief – Installment Agreements and Small Businesses
The IRS will also make streamlined Installment Agreements available to more small businesses. The payment program will raise the dollar limit to allow additional small businesses to participate.
Small businesses with $25,000 or less in unpaid tax can participate. Currently, only small businesses with under $10,000 in liabilities can participate. Small businesses will have 24 months to pay.
The streamlined Installment Agreements will be available for small businesses that file either as an individual or as a business.
Small businesses with an unpaid assessment balance greater than $25,000 would qualify for the streamlined Installment Agreement if they pay down the balance to $25,000 or less.
Small businesses will need to enroll in a Direct Debit Installment Agreement to participate.
Offers in Compromise
The IRS is also expanding a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
This streamlined OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In addition, participants must have tax liability of less than $50,000, doubling the current limit of $25,000 or less.
OICs are subject to acceptance based on legal requirements. 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.
Generally, an offer 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.
IRS – Tax Relief – Attorneys, CPA’s, Former IRS – Ft.Lauderdale, Miami, West Palm Beach