by Fresh Start Tax | Apr 24, 2013 | Sales Tax
Sales Tax Audits – Sales Tax Experts, Affordable – Ft.Lauderdale, Miami, Palm Beaches 954-492-0088
If you have been notified that State of Florida Department of Revenue is conducting a sales tax audit contact us today for expert sales tax defense.
We have over 206 years of professional tax experience in over 60 years of working directly for government agencies right here in South Florida. We are true tax experts.
We are comprised of tax attorneys, certified public accountants, former IRS agents and managers. We are tax experts in sales tax audits.
You can contact us today for an initial tax consultation. We will review your case and give you an expert opinion on how to proceed forward on your sales tax audit.
The best advice that we give our clients is not to get too worried.
Due to our years of experience we can handle the situations without fear or worry for clients.
So, Why Are Taxpayers Audited by the State of Florida?
The State of Florida conducts Sales Tax Audits for many reasons. Some of them are to:
1. Enforce Florida tax laws uniformly.
2. Deter tax evasion.
3. Promote voluntary compliance.
4. Educate taxpayers.
While the State of Florida accept most tax returns as filed, they audit some returns to verify accuracy and evaluate compliance. The state of Florida runs different compliance programs to make sure different industries are in check and paying their share of sales tax.
Sales Tax Audits do not always result in the taxpayer owing additional tax, penalty or interest. The sales tax 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 Audit?
The methods for selecting a business or individual to audit vary from tax to tax and from industry to industry. Management for sales tax runs a variety of programs based on geographic territories and compliance programs especially in area where they feel negligence is apparent. At the end of every year the state of Florida sets out its goal and mission for the following year and make sure there is an equal weight of sales tax audits among all companies and types of businesses throughout the state of Florida.
Here are some examples of sources we use to identify a potential Sales Tax audit candidate:
a. Internal Revenue Service information.
b. Information sharing programs with other states and state agencies.
c. Computer-based random selection.
d. Analysis of Florida tax return information.
e. Business publications, periodicals, journals, and directories.
What Types of Records Will I Need to Provide?
When we notify you of our intent to audit, we will also tell you what records you will need to provide. Sometimes the auditor may ask a few records and other times you will find a voluminous amount of records will be requested by the sales tax auditor.
The types of records may include, but are not limited to:
a. General ledgers and journals
b. Cash receipt and disbursement journals
c. Purchase and sales journals
d. Sales tax exemption or resale certificates
e. Florida tax returns
f. Federal tax returns
g. Depreciation schedules
h. Property records
i. Other documentation to verify amounts entered on tax returns
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 Audit?
The Florida Taxpayer’s Bill of Rights provides protection for taxpayers’ privacy and assets during their interactions with Revenue employees.
Your Taxpayers rights include:
1. The right to fair treatment.
2. The right to get available information and prompt, accurate responses to your questions.
3. The right to have the Department begin and complete its audit in a timely manner after we notify you of our intent to audit.
4. 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 audit process, communication is vital. It is important for the taxpayer never to miss a compliance date whatsoever. Should you miss a date the state has the ability to set the tax deficiencies.
After we send 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.
If you fail to respond to the Auditor Request
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.
Can I Request Technical Assistance During the Audit?
When there are transactions or issues for which the tax consequences are questionable, you may ask for a written statement of our position any time during the audit.
Our office of Technical Assistance and Dispute Resolution will issue a Technical Assistance Advisement (TAA), which is binding on the Department.
We encourage you to use our Tax Law Library to research the issue before requesting technical assistance.
What Happens When the Audit is Complete?
After your audit is complete, you can review the audit findings and proposed changes to your tax liability. The auditor will give you a copy of the work papers and explain your rights, including deadlines for filing protests.
If you agree with the findings of the sales tax audit
If you agree with the audit findings, we expect you to pay the amount due in full. You have the right to protest the proposed changes if you disagree with them.
Self-Audit/Self-Analysis
The Department uses self-audit or self-analysis projects to educate taxpayers on issues related to a particular compliance problem or industry. We send selected taxpayers information about a specific tax or issue, user-friendly instructions, and simple worksheets.
We ask them to review the materials, complete the worksheets, calculate any additional tax due, and return the paperwork to us with payment. The auditor has limited contact with the taxpayer and does not visit the taxpayer’s location. The Department usually accepts the taxpayer’s responses.
However, participation in a self-audit/self-analysis does not exempt the taxpayer from further audit review of the same time period.
Sales Tax Audits – Sales Tax Experts, Affordable – Ft.Lauderdale, Miami, Palm Beaches
by Fresh Start Tax | Apr 11, 2013 | Tax Help
Business, Corporate Tax Problems – Tax Attorneys, CPA’s- Ft.Lauderdale, Miami, Palm Beaches 954-492-0088
We can resolve all Federal and State Tax Problems.
To best resolve any business or corporate tax problem you is to speak directly to former IRS agents and managers systems, procedures, and settlement formulas to end your problems.
If you are having any business or corporate tax problems and you need professional tax help contact us today for free initial tax consultation.
You can speak directly to tax attorneys, certified public accountants or former IRS agents, managers or tax instructors.
We have over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service in the local South Florida IRS offices.
We have worked as IRS agents, managers, supervisors, appeals agents and instructors who taught tax law in the regional tax offices.
We are tax experts in all areas of both business and corporate tax problems. When you contact us we will offer an array of solutions and options to end any problem and return your business or corporate life back to normal.
We handle all state and federal tax manners. We are experts in Business and Corporate Tax Problems and Resolutions.
Our Company Resume: ( Since 1982 )
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Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
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On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
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We taught Tax Law in the IRS Regional Training Center
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Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
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Highest Rating by the Better Business Bureau “A” Plus
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Fast, affordable, and economical
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Licensed and certified to practice in all 50 States
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Nationally Recognized Veteran /Published Former IRS Agent
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Nationally Recognized Published EZINE Tax Expert
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As heard on GRACE Net Radio.com – Monthly Radio Show-Business Weekly
Areas of Professional Tax Practice:
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Same Day IRS Tax Representation
- Business or Corporate Tax Problems
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Offers in Compromise or IRS Tax Debt Settlements
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Immediate Release of IRS Bank Levies or IRS Wage Garnishments
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Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
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IRS Tax Audits
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IRS Hardships Cases or Unable to Pay
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Payment Plans, Installment Agreements, Structured agreements
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Abatement of Penalties and Interest
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State Sales Tax Cases
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Payroll / Trust Fund Penalty Cases / 6672
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Filing Late, Back, Unfiled Tax Returns
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Tax Return Reconstruction if Tax Records are lost or destroyed
Business, Corporate Tax Problems – Tax Attorneys, CPA’s- Ft.Lauderdale, Miami, Palm Beaches
by Fresh Start Tax | Apr 4, 2013 | Tax Help
Fast IRS Tax Help & Tax Relief – Ft.Lauderdale, Miami, Palm Beaches 954-492-0088
If you are experiencing any IRS problems or issues and you need a fast quick resolution to end the nightmare that you’re going through call us today for a free tax consultation and you will speak directly to tax attorneys, CPAs, or former IRS agents and managers.
We offer fast local IRS Tax Help and Relief.
We have over 60 years of working directly for the Internal Revenue Service in the local South Florida offices.
We has worked as agents, managers and also taught tax law at IRS. Also on staff is a former IRS appeals agent of 35 years. We have been offering IRS Tax Help and Tax Relief since 1982 right here in South Florida.
All our work is done in-house and we have an A+ rating by the Better Business Bureau have been in private practice since 1982.
You can contact us today for free tax consultation.
Owe Back Taxes
If you owe back taxes to IRS there are several tax options that you have including applying for an economic tax hardship, installment agreement, and also the possibility of a tax debt settlement called an offer in compromise.
Each case is different and after we find out your unique circumstances we can offer a tax relief program suited to your financial abilities.
Unfiled Tax Returns
If you have unfiled back tax returns that need filing and you have little or no records we can reconstruct those tax returns and work out a tax settlement for you at the same time. There is no problem that we cannot handle.
We are affordable, efficient and one of the most trustworthy firms in South Florida
Our Company Resume: ( Since 1982 )
-
Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
-
On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
-
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 if Tax Records are lost or destroyed
- Local IRS Tax Help & Tax Relief
Local IRS Tax Help & Tax Relief – Ft.Lauderdale, Miami, Palm Beaches
by Fresh Start Tax | Apr 4, 2013 | Tax Help
IRS Tax Relief Programs – Ft.Lauderdale, Miami, Palm Beaches 954-492-0088
We are a team of local tax professionals. We worked out of the local South Florida IRS offices for a combined 60 years.
We are a local tax firm comprised of tax attorneys, certified public accountants and former IRS agents, managers and tax instructors. If you are looking for tax relief from the Internal Revenue Service call us today and we can review all your options and work out a settlement that both you and the IRS can live with.
We have been practicing in South Florida since 1982 and are A+ rated by the Better Business Bureau.
The Internal Revenue Service is really trying hard to work with taxpayers that owe back taxes and have unfiled returns. There are a variety of new programs now available as a result of the new fresh start program or fresh start initiative.
Please read below about the program or initiative and call us if you have questions.
As a side note, if you have unfiled, back tax returns that you need to file and have little or few tax records call us today and we can reconstruct all your tax returns to get you back in the system.
IRS Tax Relief Programs
The Internal Revenue Service announced a major expansion of its “Fresh Start” initiative to help struggling taxpayers by taking steps to provide new penalty relief to the unemployed and making Installment Agreements available to more people.
Under the new Fresh Start provisions, part of a broader effort started at the IRS in 2008, certain taxpayers who have been unemployed for 30 days or longer will be able to avoid failure-to-pay penalties.
In addition, the IRS is doubling the dollar threshold for taxpayers eligible for Installment Agreements to help more people qualify for the program.
IRS Tax Relief Program for Penalty Relief
The IRS announced plans for new penalty relief for the unemployed on failure-to-pay penalties, which are one of the biggest factors a financially distressed taxpayer faces on a tax bill.
To assist those most in need, a six-month grace period on failure-to-pay penalties will be made available to certain wage earners and self-employed individuals.
The request for an extension of time to pay will result in relief from the failure to pay penalty for tax year 2011 only if the tax, interest and any other penalties are fully paid by Oct. 15, 2012.
The penalty relief will be available to two categories of taxpayers:
1. Wage earners who have been unemployed at least 30 consecutive days during 2011 or in 2012 up to the April 17 deadline for filing a federal tax return this year.
2. Self-employed individuals who experienced a 25 percent or greater reduction in business income in 2011 due to the economy.
This penalty relief is subject to income limits.
A taxpayer’s income must not exceed $200,000 if he or she files as married filing jointly or not exceed $100,000 if he or she files as single or head of household.
This penalty relief is also restricted to taxpayers whose calendar year 2011 balance due does not exceed $50,000.
Taxpayers meeting the eligibility criteria will need to complete a new Form 1127A to seek the 2011 penalty relief.
The failure-to-pay penalty is generally half of 1 percent per month with an upper limit of 25 percent. Under this new relief, taxpayers can avoid that penalty until Oct. 15, 2012, which is six months beyond this year’s filing deadline.
However, the IRS is still legally required to charge interest on unpaid back taxes and does not have the authority to waive this charge, which is currently 3 percent on an annual basis.
Even with the new penalty relief becoming available, the IRS strongly encourages taxpayers to file their returns on time by April 17 or file for an extension. Failure-to-file penalties applied to unpaid taxes remain in effect and are generally 5 percent per month, also with a 25 percent cap.
IRS Tax Relief Program for Installment Agreements or Payment Plans
The Fresh Start provisions also mean that more taxpayers will have the ability to use streamlined installment agreements to catch up on back taxes.
The IRS also announced that effective immediately, the threshold for using an installment agreement without having to supply the IRS with a financial statement has been raised from $25,000 to $50,000.
This is a significant reduction in taxpayer burden.
Taxpayers who owe up to $50,000 in back taxes will now be able to enter into a streamlined agreement with the IRS that stretches the payment out over a series of months or years.
IRS Tax Relief Programs for Streamlined Installments
The maximum term for streamlined installment agreements has also been raised to 72 months from the current 60-month maximum.
Taxpayers seeking installment agreements exceeding $50,000 will still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F).
Taxpayers may also pay down their balance due to $50,000 or less to take advantage of this payment option.
An IRS installment agreement is an option for those who cannot pay their entire tax bills by the due date.
IRS Penalties are reduced, although interest continues to accrue on the outstanding balance. In order to qualify for the new expanded streamlined installment agreement, a taxpayer must agree to monthly direct debit payments.
All these changes supplement a number of efforts to help struggling taxpayers, including the “Fresh Start” program announced last year.
The initiative includes a variety of changes to help individuals and businesses pay back taxes more easily and with less burden, including the issuance of fewer tax liens.
IRS Tax Relief Program for Offers in Compromise
Under the first round of Fresh Start, the IRS expanded a new streamlined Offer in Compromise (OIC) program to cover a larger group of struggling taxpayers.
An offer-in-compromise or a tax debt settlement on back taxes is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed.
The IRS recognizes that many taxpayers are still struggling to pay their bills so the agency has been working to put in place more common-sense changes to the OIC program to more closely reflect real-world situations.
For example, the IRS has more flexibility with financial analysis for determining reasonable collection potential for distressed taxpayers.
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.
You can find the IRS qualifier tool for offers in compromise on our website.
Call us today and you can speak directly to tax attorneys, CPAs or former IRS agents. Stop the worry, stop the stress and stamp the anxiety of your IRS situation. Please visit our offices today.
IRS Tax Relief Programs – Ft.Lauderdale, Miami, Palm Beaches – IRS Tax Attorneys, Former IRS Agents
by Fresh Start Tax | Apr 2, 2013 | Tax Help
IRS Tax Examination & State Tax Audit – Ft. Lauderdale, Miami, Palm Beaches 954-492-0088
We are a local South Florida Tax Firm, since 1982 and A plus rated.
The Internal Revenue Service conducts a tax examination for 1% of all tax returns filed. The more money you make, a greater risk of an IRS tax examination tax audit.
if you make over $1M big ones you have a 12% chance of being audited by the IRS.
Approximately 1.4 million taxpayers get audited by mail correspondence.
If you have been notified by the Internal Revenue Service that your tax return is under examination or the Internal Revenue Service has sent you a correspondence tax audit call us today and we will conduct for no cost a complete review to let you know the strategies that can help you move forward without damage by the Internal Revenue Service.
IRS audits can be conducted not only by mail but often also as office audits.
IRS may choose to send a revenue agent to your home or place in of business conduct a field audit.
Is Tax Representation needed, it all depends
Many taxpayers do not know whether tax representation is needed. There is a simple rule of thumb.
If you feel that there’s nothing wrong with your tax return, by all means represent yourself before the Internal Revenue Service. However if you feel there are skeletons in your closet or you took more aggressive positions on tax matters than you should have, you should seek a tax professional to go ahead and represent you for your IRS tax examination tax audit.
What is an IRS Tax Examination Tax Audit?
An IRS audit is a examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate.
Check out IRS Publication 556, Examination of Returns, Appeal Rights and Claims for Refund explains the audit process in more detail, that will explain more of the process.
IRS Tax Examination Audit Selection
Selecting a return for audit does not always suggest that an error has been made.
Tax Returns are selected using a variety of methods, including:
a. Random selection and computer screening – sometimes returns are selected based solely on a statistical formula. These audits are generally known as the national research projects.
b.Document matching – when payor records, such as Forms W-2 or Form 1099, don’t match the information reported. Approximately 1.4 million tax returns are audited this way.
c. Related examinations – 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 audit. This is a smaller group of those selected for an IRS tax examination.
IRS Tax Examination Audit Methods
An audit 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. This is called a office audit. If it is at the taxpayer’s home, place of business, or accountant’s office it is called a field audit.
The IRS will tell you what records are needed. Audits can result in no changes or changes. Any proposed changes to your return will be explained.
IRS Tax Examination – Audit Notification
Should your account be selected for audit, you will be notified in two ways:
1. By mail, or
2. By telephone
In the case of a telephone contact, the IRS will still send a letter confirming the audit.
PLEASE NOTE : E-mail notification is not used by the IRS.
What are your rights during an IRS Tax Examination Tax Audit
Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund processes.
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 4. will happen if the requested information is not provided.
5. A right to representation, by oneself or an authorized representative.
6. A right to appeal disagreements, both within the IRS and before the courts.
IRS Tax Examination Audit Length
The length of each audit varies depending on the type of audit, the complexity of items being reviewed, the availability of information being requested, the availability of both parties for scheduling of meetings and your agreement or disagreement with the findings.
Tax Records Needed
You will be provided with a written request for specific documents needed.
The law requires you to retain records used to prepare your return. Those records generally should be kept for three years from the date the tax return was filed.
The IRS does accept some electronic records. If records are kept electronically, the IRS may request those in lieu of or in addition to other types of records. Contact your auditor to determine what can be accepted to ensure a software program is compatible with the IRS’s.
Audit Determinations
An audit can be concluded in three ways:
No change. An audit in which you have substantiated all of the items being reviewed and results in no changes.
Agreed: an audit where the IRS proposed changes and the taxpayer understands and agrees with the changes.
Disagreed: an audit where the IRS has proposed changes and the taxpayer understands, but disagrees with the changes.
Call us today and speak directly to former IRS agents, managers and tax instructors that taught tax law and tax audit law at the Internal Revenue Service.
We are affordable and free consultations are available.
IRS Tax Examination – Tax Audit – Ft. Lauderdale, Miami, Palm Beaches
