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Archive for May, 2009
Sunday, May 31st, 2009
Have you been recently audited by the IRS? Don’t try taking them on by yourself, you need professional IRS audit help. The IRS knows that they have the best chance at netting a higher dollar amount from someone that is totally unprepared for an audit. They also know that when it comes time for you to sit down face to face with an IRS agent you will be unsuspecting of the special tricks that agents can use to get you talking about things that you are not legally obliged to disclose. However, there are ways to avoid this entire scenario and to ensure that your audit will end up going in your favor.
By hiring a tax attorney immediately after you receive an audit, the odds of a successful outcome will shift to your favor. A tax attorney can provide you with the most comprehensive IRS audit help that is available. You should call a tax attorney before you respond to the initial communication from the IRS. The sooner that you enlist the help of an attorney, the more that he or she will be able to do for you in and your specific case. Any communication that you personally have with the IRS may prompt them to do further research on you and your past income tax returns or it might raise awareness to something specific that may have overlooked in their initial audit. A tax attorney will contact the IRS on your behalf and provide them with the information that they need without giving up any additional information that may prove to be incriminating.
A tax attorney is unmatched in their ability to deal with the IRS. If you need IRS audit help, do not contact a business or a CPA to help defend you against your audit if there is a chance they will be forced to speak against you. Tax attorneys have much more experience in dealing with the IRS since that is their area of expertise. They have comprehensive legal knowledge that is unparalleled by anyone else. Not only do they have all the legal knowledge that you will need to defend yourself against the IRS, but they also have the experience in dealing with IRS agents and in negotiating repayment plans. If you do end up having to repay back taxes, an IRS attorney will be able to negotiate on your behalf a repayment plan or an offer in compromise that will satisfy the IRS without sending you into bankruptcy.
Tags: irs audit help, state tax audit, tax audit defense
Posted in Tax Audit Protection | Comments Off
Thursday, May 28th, 2009
IRS tax audits can be a completely harrowing experience, especially if you are like the majority of Americans and believe that you have always filed your income tax returns honestly and conscientiously. Before you begin to panic after you receive your first notification in the mail informing you that you are being audited, here is some helpful information that will decrease most of your worries.
First of all, everyone makes mistakes from time to time, including the IRS. Make sure that all of the information about the audit is correct. Make sure that it is addressed to you and that all of your information on the audit is correct. The audit may be the result of a simple error on behalf of the IRS.
Secondly, it is important to point out that the IRS randomly selects tax returns to audit each year, so it is entirely possible that you did nothing wrong and that you were randomly selected for the IRS version of checks and balances. The computers generate a random list of people for IRS tax audits. While this is quite unlucky, as long as you have all of the documentation that you need to support your claim you shouldn’t have anything to worry about. You will most likely have to send a specific document that the IRS requests back to them for verification. In other cases, the IRS will request a sit down meeting where they expect you to furnish specific material and answer some of their questions. In this circumstance, the assistance of an experienced tax attorney will help you significantly.
Sharing in that same sentiment about everyone making mistakes, it is entirely possible that there is something that you may have overlooked or some small amount of income that you may have forgotten to report. This is a common occurrence. All that you have to do is rectify the mistake. If you need to pay for back taxes, the IRS will usually allow you to set up a repayment plan. A well versed tax attorney would make a great asset in this type of situation. They can provide you with the expert guidance that you need to remedy the situation as quickly and effectively as possible.
While IRS tax audits are scary experiences to have to undergo, many people are surprised to find out that the entire ordeal is not that difficult, especially with the assistance of a professional tax attorney to guide you.
Tags: irs auditing, IRS Tax Audits, sales tax audits
Posted in IRS Tax Audits | Comments Off
Monday, May 25th, 2009
If you are worried that you will have to suffer through an income taxes audit by the IRS, there are several steps that you can take to protect yourself. You should always try to file your taxes on time and seek our professional help if you are experiencing any problems that are preventing you from doing so. But even if you file on time, there are several other red flags that will send you straight into the hot seat across from an IRS agent. While some of these red flags can be avoided altogether, others can not be. By seeking out the advice of a professional tax attorney you will better your odds of avoiding an audit and you will be prepared should the IRS audit you.
One of the best ways that you can avoid an income taxes audit is to file your taxes on time. When you do not get your taxes filed and paid on time, it sends a red flag to the IRS. They will scrutinize late returns much more closely. If you happen to be late in filing your returns, even if you are several years late, the IRS will inevitably catch up with you and start collection procedures. Get your taxes done before you have to deal with the wrath of the IRS.
There are several other red flags that IRS specifically looks for when processing your income tax returns. They tend to look much more closely at the returns of people that earn over one hundred thousand dollars a year. But just because you are a higher wage earner, doesn’t necessarily mean that you will have to undergo an income taxes audit. The IRS will pay special attention to your return if your business has been audited and you are a shareholder or owner. They will also look more closely at your return if you claim high cash contributions to charities, if you have a high amount of deductions on your return, if your business expenses are high in relation to your income, or if you claim rental expenses.
There are a number of other factors that the IRS looks for in addition to the aforementioned list. It is important to remember that if you are eligible for deductions then you have every right to claim them, just make sure that your return is as complete and well documented as it needs to be in order to back up all of your deductions.
Tags: audit irs, IRS Audit Representation, taxes audit
Posted in Audit Appeal, Tax Audit Appeals | Comments Off
Friday, May 22nd, 2009
Income tax return preparers may be subject to a number of general penalty provisions as well as specific preparer penalties aimed directly at them. Beware getting yourself into a position of having overstated deduction areas repeatedly. You can lose your right to prepare returns if you do.
The Internal Revenue Code incorporates a number of hazards for return preparers. In this era, when everyone second guesses everyone else, preparers must know how to recognize and avoid the dangerous areas.
The most common danger is taking a position that results in understatement of tax liability on the prepared return. However, there are a number of ways in which the preparer can justify the understatement.
A preparer must also be careful when disseminating return information to third parties. Penalties and actions for damages may result. The preparer should be aware of the permissible disclosures and how a taxpayer can consent to disclosure of his return information.
The Internal Revenue Code also imposes numerous record-keeping and reporting requirements on the preparer. Failure to comply can result in imposition of additional penalties.
Finally, for particularly egregious conduct, the IRS may disbar preparers from practice before the IRS or bring an action to enjoin the conduct. If you find yourself the target of such a proceeding brought against you by the IRS, be sure to contact a tax lawyer without delay.
Posted in Tax Lawyer Help | Comments Off
Friday, May 22nd, 2009
An income tax return preparer is any person, including a partnership or corporation, that prepares for compensation all or a substantial portion of any income tax return or income tax refund claim. To be an income tax return preparer, a person must meet the following requirements:
l The return or refund claim must have been prepared for compensation;
l The return or refund claim must relate to income tax; and
l The person must have prepared (or employed someone to prepare) all or a substantial portion of the return or refund claim.
More than one person can be a preparer as to a given return or refund claim. The definition of income tax return preparer is a little different for purposes of the understatement penalty.
The following persons are specifically excluded from the definition of income tax return preparer:
l a person whose involvement is merely clerical, such as typing or mechanical reproduction;
l a person who prepares a return for his employer;
l a person who prepares a return as a fiduciary; and
l a person who prepares a claim for refund for another person in response to a notice of deficiency or after an audit has begun.
Note that the return or refund claim must relate to income tax. It does not include estate or gift tax returns, excise tax returns, wage withholding returns, Form 1099 or Form W-2.
Caution: You can be considered a return preparer even if you do not physically prepare or sign the return. For example, a lawyer who advises a client as to a substantial item on the return can be considered a preparer under the regulations. Similarly, an accountant or enrolled agent who reviews, as outside advisor, the work of others can be considered a preparer. While the IRS is reluctant to cast the preparer penalty net so widely, there is little doubt that it has the authority to do so in appropriate cases.
If you have questions about returns you might have prepared and are unsure about your status with the IRS, be sure to contact your tax lawyer for answers.
Tags: income tax preparer, IRS Audit Representation
Posted in Tax Lawyer Help | Comments Off
Friday, May 22nd, 2009
While the majority of the people that receive a state tax audit are not at any fault, it is always in their best interest to hire a professional tax attorney in order to defend them. Tax collectors know that they are much less likely to collect additional taxes from citizens that are represented by tax attorneys, and in case they do end up collecting back taxes, the dollar amount is significantly lower on average than the money that they collect from citizens who opt to defend themselves against the IRS claims. This simple fact alone should be motivation enough to prompt you to seek out the services of a tax attorney.
State legislation differs from federal legislation regarding income taxes. And these laws vary greatly from state to state. Each state has a different percentage that they take out in taxes and there are various laws governing this procedure varying from state to state. Your safest route is to locate a tax attorney that is licensed to practice in all states and that is well versed in your state’s tax laws. A state tax audit can be a lengthy process and you want to make sure that you have someone to count on for assistance every step of the way.
Sometimes people do make honest mistakes. Your sales tax attorney can help identify anything that you may have overlooked on your taxes and he or she can work with you and the tax collectors to remedy whatever the discrepancy was. Your tax attorney will act as the liaison between you and the government so that you don’t have to be scared or intimidated. They will help you to successfully set up a repayment plan that satisfies the state taxing body without exceeding what you can afford to pay on a regular basis. Your tax attorney can also help you to avoid making similar mistakes in the future. Their guidance and representation is well worth their fees.
It is always in your best interest to hire a tax attorney in any type of audit. With a professional and competent tax attorney, your state tax audit will go smoothly. They can deal with the state taxing body first hand so that you don’t have to. Their familiarity with your state’s laws will work to your advantage. And if you do end up owing money, your attorney will work with you set up some type of repayment plan.
Tags: income tax audit, sales tax audit, state tax audit
Posted in Tax Audit Protection | Comments Off
Monday, May 11th, 2009
The best tax audit defense unequivocally comes from an experienced tax attorney. While a CPA is knowledgeable about tax rules, a tax attorney knows how to deal with the IRS and to protect your legal rights. If you or your business has been notified of an IRS audit, you should immediately contact a tax attorney to deal with the IRS on your behalf. The IRS can be very intimidating. Many of their agents have been trained in techniques that will encourage you to give up more information than you are legally required to disclose. The average American is not equipped with the legal knowledge or the mental stamina in order to deal with audit interviews. That is why the best tax audit defense will come from an attorney that has a proven track record of success.
If you are looking for a tax audit attorney, make sure that you find one that has a lot of experience in dealing with cases that are similar to yours. You may have personal or business tax problems that may require different types of tax knowledge. There are attorneys that employ a team of knowledgeable individuals that are well versed in many tax law scenarios. By locating one of these comprehensive tax law attorneys, you will be maximizing the resources that you have in providing your defense.
Even with the best attorneys, if you are liable for back taxes, you will want to have an attorney that can guide you in selecting which type of repayment options are best for your individual circumstances. An attorney will be able to come up with a repayment plan and can have this approved by the IRS. Also, depending upon your personal circumstances, you might be advised to apply for an offer in compromise in which the IRS will settle your debt for a reduced amount of money. And on rare occasions, your attorney may advise you to apply for absolution under the currently not collectible law. This law applies to people that have particular circumstances and the IRS will stop trying to collect the debt as long as those circumstances are applicable.
The best tax audit defense will make it so that you do not have to even personally deal with the IRS. Your attorney will attend the meetings on your behalf and provide the IRS with the requested information. They will defend your tax audit and have the knowledge to make sure that the IRS is acting within the boundaries of the law.
Tags: state tax audit, tax audit defense
Posted in IRS Audit Representation | Comments Off
Friday, May 8th, 2009
IRS auditing procedures have been designed to put the taxpayer at an immediate disadvantage. The laws regulating audits work in the favor of the government. The average taxpayer does not have the legal knowledge to defend themselves against an audit and the IRS likes to take advantage of having the upper hand. They will use techniques in their interviews that have been developed in order to pry additional information from the taxpayer. While these types of tricks are entirely legal, they can be completely avoided. If you choose to enlist the services of a tax audit attorney, the attorney will attend these interviews on your behalf. Attorneys will avoid disclosing additional information about you that has not been specifically requested by the IRS.
The entire auditing procedure can be very tedious and stressful. An attorney can take some of the unnecessary burden of you by eliminating your need to attend audit interviews. An attorney will also be able to work out payment plans or offers in compromise if the IRS finds that you owe them back taxes.
There are a number of ways that taxpayers can avoid the IRS auditing their returns. Certain deductions and claims serve as red flags to tax processors and are most likely to get you audited. If you have an income of over $100,000 a year, high casualty losses, claim home office deductions or hobby losses, and if you choose to itemize deductions your return will most likely wind up under closer scrutiny. By keeping proper records and documentation of all of your claims and deductions, you will be prepared to defend your tax return should an audit occur. You can also seek the help of a tax attorney while preparing your tax return for advice on how to avoid setting off any IRS audit alarms while they are processing your files.
Many people are also worried about the IRS auditing if they file a late return. By taking advantage of the guidance of an experienced tax attorney they can make sure that you take the necessary precautions to make sure that you are within the law when you file a late return. By seeking out the advice of a professional attorney you can also avoid having to pay additional fees and penalties. An experienced tax attorney is a valuable asset in all types of tax predicaments, before and after they occur.
Tags: irs auditing, state tax audit, tax audit defense
Posted in Tax Audit Protection | Comments Off
Tuesday, May 5th, 2009
The California sales and use tax can be very confusing for business owners to interpret. Many business owners struggle to understand California’s frequently changing sales and use tax laws, regulations, interpretations, policies, and procedures. Keeping your business current with these provisions is a challenge, but the burden rests upon your shoulders. It is important to have a comprehensive understanding of the laws governing the sales and use tax in order to protect your business from and at the beginning of an audit. Make sure that you stay current with all of the laws and follow all of the procedures enforced by the California State Board of Equalization. If you have already begun the audit, your best protection for your business will be that of a professional tax attorney. The California State Board of Equalization performs routine audits on various businesses that fit certain criteria. There is no guarantee that your business will be exempt from the board’s auditing system. By keeping all of your records in order and documenting all of your business information, your company will be prepared for an audit. By hiring an experienced tax attorney you can guarantee that you will be ready to face the board with your case.
When your company is facing a California sales tax audit, it is often impossible for the average business owner to decipher the California sales and use tax laws and be able to interpret them. An attorney can explain the laws and the audit procedure and translate the legal jargon into layman’s terms. California state tax auditors are known for their assertive approach in collecting understated taxes. An experienced tax attorney will be able to handle these auditors and make sure that your business is being treated fairly and legally. If you have been audited, contact a tax attorney that is experienced in dealing with California sales tax audits.
You can also enlist the services of a professional and experienced tax attorney to perform a compliance review to make sure that your business is in compliance with all California sales and use tax laws and policies. They can look over your bookkeeping, accounting, and see how the tax laws apply to your day to day operations. They will provide you with a comprehensive list of recommendations to ensure your business is in complete compliance with the sales and use tax, or provide you with peace of mind if your business is up to date in compliance.
Tags: california sales and use tax, irs auditing, tax audit defense
Posted in Sales & Use Tax | Comments Off
Saturday, May 2nd, 2009
Sales tax audits can be one of the most harrowing circumstances for a business owner to have to endure. This is especially true if the business owner has not kept track of all records and did not save all the original documents pertaining to all of their business transactions. Business owners must keep hard copies of documents pertaining to every single aspect of their business. They need to keep all invoices, receipts, orders, cash register tapes, and everything else. If you are audited, the government will want to see your original paperwork, not just your sales logs and bookkeeping records.
Many business owners receive sales tax audits because they made honest mistakes or there were accidental oversights that may have occurred. Sometimes interpreting your state’s sales tax laws can be a difficult task. It is always best to clarify any sales tax questions that you may have as soon as they arise. That way you can limit the amount of damage that can be done by not following your state’s laws. If you are unsure of some of your state’s sales tax laws, contact a professional that can explain them to you. Legal terminology can be confusing, but you cannot afford to make any assumptions when it comes to your state’s sales tax laws. Seek out professional advice if you don’t understand how to deal with and document tax exempt transactions.
Sales tax audits will take some time. Once you have been audited you will be required to meet with an auditor and they will explain the process and require that you get together the information that they are requesting of you. You can also choose to have an attorney represent you during the auditing process. Then you will have to turn over the requested information within a specified amount of time.
Once the government representative assesses all of the information that has been presented in the case, they will determine if your business does in fact owe back taxes or if you have provided sufficient information to prove otherwise. If you end up owing money you will be able to work out a payment plan if you cannot pay the amount in full. A tax attorney can sometimes apply for an offer in compromise if, for example, you are no longer in business or have otherwise lost your income flow. The attorney will try to come up with an offer that you may pay the government in response to your debt. The government can choose whether or not to accept the payout figure. If they do accept your offer in compromise, your debt will be satisfied.
Tags: irs auditing, sales and use tax, sales tax audits, tax audit defense
Posted in Sales & Use Tax | Comments Off
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