- Audit representation
- Transcript protest
- Tax penalties
- Unfiled returns
IRS & State Audit Representation
IRS Audit Representation And Tax Audit
Any interaction with the IRS, including IRS audit representation, can be intimidating and frustrating. Our professionals are well-versed in how the IRS operates and have extensive experience in federal and state audit representation. We understand the procedures involved in tax examinations and can effectively represent you during the process. We also provide assistance with ruling requests. You can rely on our expertise to handle your tax controversy matters as efficiently and smoothly as possible, ensuring that your interests are protected throughout the tax audit representation process.
Preparing for an Audit
Audits are becoming increasingly common across all government levels, Federal, State & Local. They are targeting businesses of all sizes and income classes, with speculation that the “low-hanging fruit” will yield high revenue for governments.
With much debt stemming from the pandemic, taxes may be increased or audits stepped up in order to balance the books. At our firm, we have decades of experience representing clients through tax audits. Auditors require comprehensive records, and deadlines must be met. We are able and ready to assist in the tax audit representation process.
Tax Resolution
The IRS may have an issue with your tax filings for a myriad of reasons, including complicated reporting or suspicion of understated income. In such cases, they may initiate a tax audit. Additionally, if you have not filed your taxes for an extended period, it can also trigger concerns from the IRS. Whatever your situation may be, our team is here to provide tax audit representation and help you navigate the process. We have experience working with the IRS to reach a mutually beneficial resolution. Some of the situations our team can assist with include:
- Payroll tax recovery
- Tax liens Services
- Wage garnishment
- Paying back taxes
Increases in Audits
More audits are certainly coming. With that said, rumor is they may be targeting small business, as well as all income classes (not just the top earners).
With all the recent bailouts due to the pandemic, there is an abundance of debt on the balance sheet, and that debt must be serviced. One way to service that debt is to increase taxes, and/or ramp up audits.
Please understand that our firm has represented many clients over the last 15+ years, and we feel comfortable doing so going forward. With that said, no audit is ever easy. Additionally, there are specific requirements that auditors ask for, and to head things off beforehand, we want to make sure our clients are prepared should these pesky auditors come knocking.
Therefore, we want to ensure that all business taxes have completed books (financials) which shows all reconciliations of accounts. Every auditor asks for this during an audit, and we only have a specified timeframe to provide. Enlist the assistance of a qualified tax professional, such as a tax attorney or enrolled agent, to provide thorough IRS audit representation.
Below is a one-page write-up by the Committee on Ways and Means so that everyone should read for themselves.
“Americans’ Chances of Audit More than Doubles as Newly Supercharged IRS Targets Lower- & Middle-Income Earners November 18, 2021. Democrats’ tax and spending spree will more than double Americans’ chances of being audited as it targets lower and middle-income earners. The proposal will lead to an additional 1.2 million IRS audits each year, nearly half of which will hit middle class families making less than $75,000. All this so Democrats can squeeze an extra $200 billion out of the American people, particularly from middleclass families and small businesses.
Biden’s plan to supercharge the IRS with $80 billion in mandatory funding and 87,000 new IRS agents will lead to drastically higher audit rates for all Americans at every income level according to the Congressional Budget Office. What does that mean for Americans? More than double the chance of being audited. And not just for the rich.
There would be more than 1.2 million more individual audits per year. Nearly half of these audits—over 583,000—would be on Americans making up to $75,000 a year. Even the lowest income Americans would see more audits with a quarter of these audits— over 313,000—hitting Americans making up to $25,000 per year.
This also will mean more than 800,000 more federal tax liens on taxpayer property such as homes and vehicles. The best available information/data shows that the majority of underreported individual and small business income is from those making between $0 and $200,00.
The Biden plan will mean more audits of the middle class and lower income Americans, 800,000 more federal tax liens per year, and more IRS Audit Representation shake downs of American families and small business” (Committee on Ways & Means, 2021).
Know Your Rights
Did you know that as a taxpayer, you have certain rights as outlined in the Taxpayer Bill of Rights? Although you have the option of resolving tax problems yourself, it is advisable to enlist the assistance of tax professionals, such as tax consulting services, who understand these rights and can guide you toward a favorable resolution. As a taxpayer, you have the right to:
- Be informed
- Quality service
- Pay no more than the correct amount of tax
- Challenge the IRS’s position and be heard
- Appeal an IRS decision in an independent forum
- Finality
- Privacy
- Confidentiality
- Retain representation
- A fair and just tax System
To get more insights check: Business Advisory Services
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