How to Defend Your Tax Audit and Win
YOUR TAX AUDIT RIGHTS When they first hear they are the subject of an IRS audit, many people immediately think about going to jail. And the IRS does very little to make us think otherwise. Consider the celebrated and much-publicized cases of Willie Nelson and Leona Helmsley.
The IRS loves to hit the newspapers with big names like this. It makes the average American very nervous about the same thing happening to them in an IRS tax audit. HOWEVER, when you understand your tax audit rights, and when you understand the IRS’ own limitations in a tax audit, you can rest assured that you’ll leave the IRS audit with your money in your own pocket. It’s that simple and that’s where we can help win your tax audit. By the way, if your audit is a business audit, check here for how this might be different from a personal audit. Is there even a 1% chance of criminal liability in your case? Then read why you should use an attorney to defend your audit and never use a “company,” Enrolled Agent or CPA.
Do you really understand what happens in an IRS tax audit? Do you understand why you need a lawyer as soon as an IRS audit begins? For example, do you have to let the IRS come to your office or let them in your house? Does the IRS have the right to talk to your customers, clients, or patients? Can they force you to turn over records, even those you don’t want to turn over? Biggest question of all: Did you know there are ten steps to winning your income tax audit?
I have the answers you need. For tax audit help, you’ve definitely come to the right attorney.
I am going to give you the first step right now. Step One To Win Your Tax Audit: Stop Thinking You Did Something Wrong. Why? Because returns don’t get selected for tax audit just because there’s an error. Returns are selected for statistical reasons, not just because there’s some error that’s going to go against you. How does this work to your advantage? Step Nine To Win Your Income Tax Audit: When we begin the IRS audit interview, we will always know that we have prepared your tax audit defense 100%. We know that your positions are right and we know you have nothing to worry about. Result: you have already won. We will have applied our other nine steps and we’ll be 100% prepared with all the documentary evidence you need to come out of your tax audit a winner. For example, let’s say you’re missing some receipts for some expense you claimed on your return. Step Five To Win Your Tax Audit: We help you put together the correct paper evidence to take the place of the missing receipt. That’s right, we can make a legal (we are tax lawyers), legitimate paper for filing that supports your deduction.
Call and talk to John Ellsworth of ELLSWORTH LAW GROUP today! Call and get John on the phone right now 877-477-7658. Or click here and send us a quick email.
This means that you can relax once you hire us to defend your tax audit. Tax Audit Attorney John Ellsworth has the tax audit help for you and can help you come out of the IRS audit with your money still in your pocket.
We at IRS-SOLV will appear with you or in place of you at the IRS tax audit. That’s right, depending on your budget you can request several types of appearance. John knows exactly what to say and what not to say. Plus, some income tax audits can be made into correspondence audits so there is no need for anyone to appear. This is how we so successfully defend audits no matter where the IRS office is located.
In this manner we keep the IRS from ever speaking with you and trying to reel you in unless we are right there with you, ready to jump in and stop the interview. This is how we help you avoid saying something that might go against you.
In those cases where we believe a face-to-face income tax audit is to your benefit, then we apply Step Number Ten To Win Your Tax Audit-we make a record of the meeting. This is extremely important in all tax audit cases. Once you retain us to represent you in your tax audit we can talk to you confidentially about why this Step Ten To Win Your Tax Audit is a must and how we will apply it it in your IRS audit. If you’re the subject of an IRS audit you should call us today and let us take over. You’ll be glad you did.
Call and talk to John Ellsworth of IRS-SOLV today! Get the tax audit help you need right here. Call and get John on the phone right now 877-477-7658. Or click here and send us a quick email.
THE TRUTH ABOUT REVENUE AGENTS Revenue Agents (the tax auditors), have very little power, with one exception: They can turn you over to the Criminal Investigation Division of the IRS. That’s right, if the revenue agent suspects a crime has been committed while he or she is doing your IRS tax audit, they can turn you in to the IRS police.
Now here’s an important thing to keep in mind: Most IRS tax audits and most criminal investigations never go anywhere unless you say something you shouldn’t have said. Or unless you turn over records your lawyer should have reviewed first. Step Three To Win Your Tax Audit: Don’t speak to these people and don’t turn over records without first talking to us. If an IRS tax audit is begun, call us and we’ll speak to them for you. After all, with the IRS you are guilty until proven innocent. Example: a Revenue Agent will disallow your deductions unless you can prove them with receipts. Never mind that receipts can always be provided, with our help. Another example: the Revenue Agent will add up all your bank deposits for the year and claim that’s how much income you had. Never mind that part of the deposits came from savings or from other sources you own besides income from your work or business. That’s why you need a tough tax audit lawyer like John Ellsworth to do your own tax audit and prove the truth of the matter for you. This way you can prove your innocence and that’s actually what it takes in an IRS tax audit.
I handle every aspect of a tax audit myself. Every phone call is made by me; every letter is drafted by me; every meeting or dealing with the government is done only by me. I believe there is no such thing as a routine tax audit, or call or letter to the government. They all mean something and nothing should be overlooked or taken for granted. There are no salesmen or assistants working on your confidential tax audit case at any time. Of course I also rely on the valuable assistance of a select group of CPA’s and professionals to help me develop your IRS audit case. But when it’s all said and done, it is my opinion and my expertise that will be presented to the IRS and Tax Court judges. Please compare this level of tax audit service and applied expertise to that offered by others. You will be amazed at what a difference this extra protection and care can make in the outcome of your tax audit.Our typical clients are individuals, small businesses and professional people, and small-cap corporations who require the assistance of outside counsel at some time during their tax audit.
I am a tax audit lawyer with 35 years of experience. My tax audit law practice extends across the United States. Each year I take tax audit cases from all states and overseas. I also practice defense of criminal tax cases. I try cases in U.S. Tax Court and U.S. District Court. All comments and postings are welcome and I will do what I can to respond in a timely way.
Call and talk to John Ellsworth of IRS-SOLV today! Call and get John on the phone right now 877-477-7658. Or click here and send us a quick email.
Want to know more about audits and tax returns and why you got audited? Looking for specific tax audit help? Read below.
THE RED FLAG TAX AUDIT RETURN
The Red Flag Tax Audit Return
In recent years, less than 2% of all individual income tax returns have been audited. However, your chances for an IRS audit are higher depending upon certain types of income, certain amounts of income, your profession, the types of transactions, and the types of tax deductions claimed on your tax return. Returns selected for tax audit always reflect these tax audit flags. The IRS does not have enough personnel and resources to examine every tax return, so the IRS selects those tax returns which, upon quick review, have high audit potential – those that are most likely to result in a substantial tax audit deficiency. Red Flag Tax Audit Areas – High Wages
As your income goes up, so does your chance of an IRS audit. Based on audits of 2002 tax returns, the odds of an IRS audit for someone in the $25,000 to $100,000 income bracket are 1%. For those making more than $100,000, the odds increase to almost 2% or double.
Your chances of being the subject of an IRS tax audit are greater when the following are present:
- You are a shareholder or partner in an audited partnership or corporation.
- You claim substantial cash contributions to charities that are disproportionate to your income.
- An informant has given information to the IRS (think angry ex-spouse or business partner).
- You claim tax shelter investment losses on your tax return. This is a juicy tax audit subject.
- You have complex investment or business expenses on your tax return.
- You have large amounts of itemized deductions on your tax return that are outside IRS audit parameters.
- You own or work in a business which receives cash in the ordinary course of business. Lawyers beware.
- Your business expenses are high in relation to your income.
- You have rental expenses on your tax return.
- A previous IRS audit resulted in a tax deficiency.
- You have complex tax transactions without explanations on your tax return.
You must report all your income, and you should take all your tax deductions, even if they increase your chances for an IRS audit. Don’t be scared off by these factors. However, also realize that your chances for an IRS audit do increase with certain tax items, and prepare your tax return accurately and completely. Don’t use a cheap “tax return mill” for this kind of return.
Call and talk to John Ellsworth of ELLSWORTH LAW GROUP today! Call and get John on the phone right now 877-477-7658. Or click here and send us a quick email.
Red Flag Tax Audit Areas – Large Amounts of Itemized Tax Deductions
If your itemized tax deductions on your tax return exceed certain parameters set by the IRS, the chances of being audited by the IRS increase. This does not mean that you should not take tax deductions on your tax return that you are entitled to, but you should realize that your chances for an audit increase if your tax deductions exceed the averages for your income level.
Red Flag Tax Audit Areas – High DIF
When your tax return is filed, IRS computers compare it against the national Discriminate Information Function (DIF) system average. The IRS calculates the DIF score by using a closely-guarded formula. Tax returns with the highest DIF scores are scrutinized by IRS tax audit experts who decide which tax returns provide the best chance for collecting additional taxes, interest, and tax penalties.
Red Flag Tax Audit Areas – Unreported Taxable Income
Unreported taxable income is a common red flag. Who, you might ask, wouldn’t report all their income? After all, it’s a simple matter in a tax audit for the IRS tax auditor to add up all your bank deposits for the year and compare that to the income on your tax return. Simple, yes, but sometimes the omission of income is purely accidental. In the tax audits we handle we see innocent omissions again and again. Also, the IRS discovers unreported taxable income when its computers match the taxable income you reported on your tax return with information gathered from stock brokerages and others. For example, if you failed to report on your tax return the gain earned on a sale of stock, the IRS typically will catch you when it matches the stock broker’s payment records, called 1099 forms, against your tax return.
One good way to make sure you don’t miss unreported taxable income is to review last year’s tax return to make sure you have 1099’s, etc. from mutual funds, banks and other sources.
Red Flag Tax Audit Areas – Self Employment
Because the IRS believes most under-reporting of taxable income and abuse of tax deductions occurs among those who are self employed, these individuals are audited by the IRS far more frequently than employees collecting a salary. There’s a high incidence of tax audit for taxicab drivers, saloon owners, waiters and waitresses, and others who traditionally receive payment in cash. Also, the IRS will sometimes conduct tax audits of certain individuals to determine if a taxpayer’s reported taxable income can support his or her lifestyle.
Red Flag Tax Audit Areas – Home Office Tax Deductions
At IRS-SOLV we see home office tax deductions selected over and over by the IRS. You could almost say the IRS has a huge dislike of this deduction. Since the tax rules for deducting home office expenses on your tax return are complicated, you should consult us at IRS-SOLV to determine whether you qualify to deduct home office expenses on your tax return.
Call and talk to John Ellsworth of ELLSWORTH LAW GROUP today! Call and get John on the phone right now 877-477-7658. Or click here and send us a quick email.
Red Flag Tax Audit Areas – Unreported alimony
Over the years, the IRS has found that not all taxpayers report alimony received as taxable income. Because of this, the IRS now matches tax deductions for alimony payments by one former spouse with the taxable alimony income reported by the other.
Red Flag Tax Audit Areas – Automobile Logs
One of the biggest and most commonly audited items by the IRS for individuals in their own business, and employees of companies who use their car in business, is the tax deduction for business transportation. It is important that you keep good records of all tax deductible automobile expenses and a mileage log showing business miles driven. If you haven’t kept such a log we can help reconstruct one from your appointment book and software we recommend (less than $30 to buy).
Call and talk to John Ellsworth of IRS-SOLV today! Call and get John on the phone right now 877-477-7658. Or click here and send us a quick email.
THE GOOD NEWS
By retaining our law firm, you gain the power and expertise of tax lawyers who know how to deal with Revenue Agents and IRS tax audits. For openers, once our firm is hired by you, the assigned Revenue Agent or Revenue Officer must deal directly with our firm, instead of with you. This keeps you much safer in the tax audit than trying to deal with the IRS by yourself and risk saying something that might make things much worse for you. Let our knowledge and professional stature take over for you and stand firm on your behalf.
I handle every aspect of a tax audit myself. Every phone call is made by me; every letter is drafted by me; every meeting or dealing with the government is done only by me. I believe there is no such thing as a routine tax audit, or call or letter to the government. They all mean something and nothing should be overlooked or taken for granted. There are no salesmen or assistants working on your confidential tax audit case at any time. Of course I also rely on the valuable assistance of a select group of CPA’s and professionals to help me develop your IRS audit case. But when it’s all said and done, it is my opinion and my expertise that will be presented to the IRS and Tax Court judges. Please compare this level of tax audit service and applied expertise to that offered by others. You will be amazed at what a difference this extra protection and care can make in the outcome of your tax audit. Our typical clients are individuals, small businesses and professional people, and small-cap corporations who require the assistance of outside counsel at some time during their tax audit. They are looking for serious tax audit help and they soon find John Ellsworth has their irs audit answers.
I am a tax audit lawyer with 35 years of experience. My tax audit law practice extends across the United States. Each year I take tax audit cases from all states and overseas. I also practice defense of criminal tax cases. I try cases in U.S. Tax Court and U.S. District Court. All comments and postings are welcome and I will do what I can to respond in a timely way.
Call and talk to John Ellsworth of IRS-SOLV today! Call and get John on the phone right now 877-477-7658. Or click here and send us a quick email.
LEARN MORE ABOUT HOW WE DEFEND TAX AUDITS? CLICK HERE.
