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Posts by G Deitsch

Tax Filing Due Date Oct 15 2019

Tax Filing Due Date on Oct 15 2019 for Individuals and C-Corporations who filed for 6-Month Automatic Extension

If you wonder what it’s all about filing an extension, it’s really a simple process.  Your income tax returns will normally due on April of every year, but applying for a 6-month automatic extension allows you more time to file.  This extended deadline for the tax return is October 15 now, but only for individuals and C-corporations who applied using IRS Form 4868.  This extended deadline applies only if you filed or e-filed a tax extension by April 15, 2019.  Before filing your tax it is important to educate yourself about the tax situation to avoid complications later.

Does IRS Reject Your Tax Extension Application?

The tax extension request might be rejected under certain circumstances for the following common reasons.

  • Misspelling, errors in numbers or other errors on the extension form
  • Out of date information provided in the extension form

IRS will notify through email or letter if extension request is rejected.  Such instances, IRS will provide five days of time to fix the issues, and correct the errors in order to file again.

The tax extension has several advantages.  It is easy to get the extension for your tax filing.  Here are some of the benefits of filing for an extension.

  • Having more time to file your taxes will make the process to complete without feeling stressed
  • The chances of making errors will get low with this extended time
  • If you are looking for a tax professional to handle your tax audit, this extended time will be helpful to find the right tax attorney for your needs

If any taxpayers fails to file the tax returns even by Oct 15 due date, you will be subjected to IRS penalties and interests.  Here’s how the IRS penalties could add up:

Penalty for non-filing: If you don’t file the taxes, for every month the penalty will be 5% monthly of the net tax due.

Penalty for non-payment: If you don’t pay your taxes, for every month the penalty will be 0.5% monthly of the net tax due.

The penalty for failure to file tax returns is more than failure to pay the taxes itself.  Act immediately and file your taxes on or before Oct 15 2019.

IRS Repayment Plans

For those who are unable to pay taxes on time, the IRS is offering different repayment options for the tax payers.

Full-payment agreement: You can apply for this payment option if you are able to pay your entire tax debt within 120 days.  You will get the IRS notification once you applied whether your payment option is approved.

Installment agreement: Sometimes you may not be eligible to pay the full tax debt in 12 months.  Certain times you can choose this option for the repayment.  The main advantage of this option is avoiding accruing additional interest and penalties.

Offer in compromise:  This repayment option may allow you to pay less than you owe only if you meet certain qualifications.  IRS will consider taxpayers unique set of facts and circumstances for approving this option.  This option is not for everyone.  Before approving this repayment option IRS will check your ability to pay, income, expenses and asset equity.

If you’re struggling to complete your tax return, don’t hesitate to seek a tax professional’s assistance that can help you get it completed properly and on time.  IRS Audit Group specializes in tax audit representation can help you facilitate your tax filing process.  Our Tax attorneys, CPA’s and enrolled agents are able to offer options that best fits your case to reduce any tax debt, eliminate disputes etc.  Contact Us Now for Free Consultation:-

info@irs-audit-group.com / 1-888-300-6670

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IRS Tax filing due date Oct 15 2019

For C-Corporations and Individuals Opted For Automatic Extension – Tax Filing Due Date on Oct 15 2019

We can avoid penalties associated with tax filling by taking action in time.  The general option is to seek another date for tax filing.  The benefit of seeking an extension is that it can improve the accuracy of your tax return.  Tax extension time is essential if you are still preparing your tax documents to be organized.   In fact, the deadline for filing the 2018 tax returns was April 15, 2019.  However, by filing IRS Form 4868, individual people and businesses may extend the tax filing deadline to six months i.e. September 15, 2019. Now, the Tax filing due date has been extended up to Oct 15, 2019.

But getting an extension doesn’t offer you more time to pay — it only provides you more time to file return.  Here are the common reasons why you might need to push your deadline back:

  • You may need more time to track down your missing documents
  • Any unexpected life event or
  • Your busy life

Filing for a tax extension is simple, free and automatic.  Just submit Form 4868 electronically or on paper before the original filing deadline.  But if you fail to submit your tax return by the updated Tax filing due date, there are chances that you may end up paying higher penalties.

What happens if you miss October 15, extended tax filing due date?

Now, if you miss October 15 Tax filing due date for tax filing, you will not get any refund that IRS owe.  Moreover, the IRS will deduct any interest and penalty you owed from the refund.  If you wish to receive the refund you are entitled to, the necessary returns need to be filed in time.  The IRS will compile a substitute return, and then notify you how much tax you owe to the federal government.  The IRS will begin the collection activity against you once it compiles and notify you about the substitute return.  These may include the collection and seizure of your property, including:

  • Bank account
  • Retirement savings
  • Real estate
  • Secondary car or home
  • Life insurance policies

IRS will notify you in writing a mail about the seizure or levy of your assets through US Postal service once they find that you failed in complying with the Tax filing due date.  You will be getting 30 days’ time to convey the intention or resolve your debt in order to avoid it.  If you want to protect the assets that you own you should not ignore the written notice from the IRS.

Individuals or corporations sometimes file for an extension because they owe taxes, but they are unable to pay them.  This is the worst reason for applying for a tax extension.  IRS will offer some payment plans if you can’t pay the tax return instead of filing an extension.  IRS also offers some installment agreements for tax payers who are unable to pay the taxes when they are due.

IRS Fresh Start Program is available, if you are not able to pay the tax in one time, it will allow you to pay in installment.  IRS may provide more options like settling the tax debt for a lower amount or allowing you extra time to file and pay.  But this extension is mainly reserved for military personnel and taxpayers living abroad.

IRS Audit Group analyzes any individual or businesses’ tax situation and provides the payment options that best fit you and the IRS.  If you receive any notice in mail from the IRS, contact a professional or tax attorney immediately to know your options.  Our IRS Audit Group’s members are experts in tax audit representation services who can bring best solutions for your tax problems.

Contact Us: – info@irs-audit-group.com/1-888-300-6670.

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Let Us talk To the IRS - Importance of Tax Audit Representation

Let us talk to the IRS for you – Importance of Tax Audit Representation

IRS Audit is the process of examining an organization or individual account and financial information.  The main objective of IRS audit is to ensure that the financial information given by organizations or individuals is correct according to the tax laws.  Several methods are used by the IRS to select the assessment files for audit.  Such audits are completed by examining the records either by mail or through an in-person interview.  It is important to note that IRS audit will not initiate the audit process by phone.

Types of IRS audit

Knowing the type of audit will make the tax payers to feel stress-free for the audit process.  It is always better to contact the tax professionals once you receive the audit notice.  They will analyze your options and make contact with the IRS agents for Tax Audit Representation.

There are four types of IRS audits:

  1. Correspondence Audit

This is the lowest level and least severe type of audit.  In this IRS will be sending letter in mail requesting more information about part of a tax return.  If you have the necessary receipts or information, you can easily handle this audit by your own without the need of tax attorney.  If you don’t have the receipts or information then you will need a tax professional to handle the IRS because you could face fines, penalties and interest if you end up owing money.

  1. Office Audit

The office audit is more serious than the correspondence audit.  If IRS needs more information and documents then they will send letter in mail inviting you to visit IRS office for audit.  For this type of audit, one needs to bring their office audit preparer and tax attorney for audit representation.  IRS prefers to discuss with the Tax Audit Representation Professional who can understand the audit process and make the entire audit seamless.

  1. Field Audit

During a field audit, the IRS professionals will directly visit your home or office.  If the IRS is coming out to you then they are looking for more information.  Most of this type of audit will end up in favor of IRS.

  1. Random Audits

In this audit the IRS agents will not be looking for something in particular.  They make comprehensive audit to find a way in increasing the taxes.  If you do not have proper receipts or other documents, it is advisable to contact a tax lawyer who can help you with different options based on the case.

The time taken for the IRS audit depends on the issues involved and how quickly and completely we respond to the audit letter.  It also depends on the type of audit.  Correspondence audits are usually quick and straightforward than the other audits.  Mail audits will generally complete within three to six months.  Office audit will also take the duration of three to six months.  But it will get delay if you are not providing complete information or the IRS auditors finding more issues.

The chances of getting audited

There are several reasons for the IRS to audit an organization or an individual.  Here is a summary of a few such reasons;

  • Math mistakes, hiding income, deduction overkill and round numbers are the most common reasons for getting audited by IRS.
  • While filing your own taxes, avoid math errors otherwise you will be fined regardless of whether your mistake was intentional. You can use tax preparation software or a tax professional to avoid such math mistakes.
  • If you fail to report any part of your income then you will definitely audited by the IRS.
  • If you report false donations without having any proper documents then it will surely lead you to the IRS audit.
  • If you are a business owner and hide your income by filing personal expenses as business expenses then the IRS will begin to review your returns for audit.

Can the IRS audit you after a refund?

The IRS can audit the tax returns even after it has issued a tax refund to the tax payer.  A tax refund means that the IRS has reviewed your returns and agreed with your calculations.  Yet, if significant errors are identified, the IRS can audit the tax returns filed in the last three years but not more than the previous six years.

Who can represent a taxpayer in IRS Audit?

An Enrolled Agent (EA), a licensed CPA or a tax attorney can represent a tax payer in IRS Audit.  These individuals are able to represent you by arguing points of law with the IRS.  IRS Audit Group has professionals with CPA, enrolled agents and tax lawyers who can involve in the Tax Audit Representation.  Let us talk to the IRS for you to help solve the issues faster and in favor of you.  We not only serve in California, regardless of your location our certified tax lawyers are experts in state tax and federal tax law.

Contact us immediately: info@irs-audit-group.com/ 1-888-300-6670.

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Due Date for S Corporations, LLC & Partnership for Tax Filing is on September 15, 2019

The tax rule for S Corporations, LLC and partnership are the same under the tax code.  The due date for S Corporation taxes for the financial year 2018 -2019 was March 15, 2019.  However, one can opt for extension of six months by filing Form 7004. With such extended option, now the due date for S Corporation taxes is September 15 2019.

S Corporation exists in order to avoid double-taxation on earned income.  S Corporations pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S Corporation report the flow-through of income and losses on their personal tax returns, and are assessed tax at their individual income tax rates.

What If You Miss the Tax Final Filing Date?

If S Corporation owes taxes from a 1040 or 1120 Form that is filed after 15th April (without filing for the extension), the penalty for the S Corporation is 5% of the taxes owed for every  month from the tax return is late for filing, and can exceed up to a penalty of 25% of the tax due.  If S Corporation is in financial difficulties, and is not able to make the tax payment then it needs to apply for an installment option.  With that and it makes an agreement with IRS stating that it would make the tax payment in a periodical installment.  The S Corporation can e-file the tax and the IRS will accept e-filed tax returns up to 15th October 2019.

Forms and S Corporations

Below is a list of forms to be filed by S Corporation before 15th September 2019.

  • Form 1120-S for The United States Income tax for S Corporations
  • Schedule K-1 for Shareholder’s share of Income, Deductions, credits etc.
  • Form 940 to be filed for employers annual Federal Unemployment Tax Return (FUTA)
  • Form 941 for employers quarterly federal tax return
  • Form 1099 for non-employment compensation
  • Form W2 for the wages and the tax statement

The S Corporation needs to submit supporting documents for each form or schedule as needed.

 

Advantages of S Corporation Taxes

  • S  Corporations avoids double taxation of corporate income
  • No self-employment taxes for S  Corporation net earnings
  • S  Corporation losses can reduce the owner’s taxes

 

Disadvantages of S Corporation Taxes

  • S Corporation to pay salaries to shareholders who work for the business.  That means taxes need to be withheld from the owner’s pay, payroll returns filed, and W-2 forms issued.
  • S Corporation status can be lost if it exceeds 100 shareholders, or if it takes on investors who are non-resident aliens, Corporations, or partnerships.
  • If the S Corporation used to be a C Corporation, the S Corporation may have to pay tax if it generates passive investment income or if it sells a highly appreciated asset that it acquired when it was a C Corporations.

 

File Form 2553 before the Due Date to maintain S Corporations status

 

  • If a newly formed Corporation wants to be an S Corporation from its date of in Corporation, the Corporation has to submit form 2553 to the IRS no later than two months and 15 days from the date of in Corporation.
  • If already existing C Corporation wants to become an S Corporation then it needs to submit Form 2553 any time during the current year and no later than two months and 15 days into the next year.
  • If the already existing Corporation that forgot to file Form 2553 and wants to request retroactive S Corporation status then it needs to submit Form 2553 no later than three years and 75 days from the date the owners intended for S Corporations status to take effect.  The shareholders will need to explain why they are late in filing the election.

 

In spite of possibilities to being audited for S Corporation are low, the IRS still tracks the K1 with companies’ EIN and further to W2 and from W2’s social security number to corresponding K-1.  Therefore if you do not have K-1 and W2 with corresponding values, the risk of being audited is increasing.  Consult with tax experts like IRS Audit Group to know your risk of being audited and be ready to face them with one of our representatives.  We are a team of IRS Attorneys, CPAs and Tax Attorneys with expertise in IRS Tax Audit representations.  Contact us: info@irs-audit-group.com/ 1-888-300-6670.

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S Corporation, LLC & Partnership September 15, 2019 – Extended Due Date for S Corporation, LLC & Partnership

Generally, S Corporation, LLC & Partnership are required to file tax return before March 15 2019 for the calendar year 2018-2019.  While filing such return, S corporation needs to file Form 1120S and attach Schedule K-1 for its shareholders.  An S-corporation also need to file payroll tax returns, including Form 940, Form 941, and other informational returns such as Form 1099 while filing its return.

In the case of LLC, it has four different ways to file its tax returns as given below;

  • LLCs as a Sole Proprietorship – file Schedule C on the owner’s personal tax return.
  • LLCs as a partnership – file partnership tax return using form 1065.
  • LLCs that choose corporate tax treatment – file either an S-corporation tax return (Form 1120S) or a C-corporation tax return (Form 1120).

Also all partnerships are required to report its revenue and expenses by using Internal Revenue Service Form 1065 every year.  The due date for filing Form 1065 used to be April 15th of every year.

Extended due dates for S Corporation, LLC & Partnership

There are situations where certain businesses cannot file the tax return before the due date.   The IRS provides extension in such situations.  However, such extensions should be properly availed using Form 7004 before the tax filing due date.

S-corporations and LLC can request additional six months to file its Form 1120S using Form 7004.  With such extension the due date for S-corporation is now Sep 15 2019.  Partnerships can also request an automatic five-month extension by filing Form 7004 before the due date of Form 1065 i.e. April 15 2019.

Remember, the IRS will never send letter if the extension is approved. However IRS will send a notice only if it is disallowed.  uring such automatic extension, the IRS has all the rights to terminate the extension at any time by sending a letter 10 days before the termination date mentioned in the letter.

How to file for extension?

Before filing the Form 7004, it is advisable to arrive at tentative tax amount and the amount you like to pay immediately.  This will be useful to fill the balance amount to be paid before Sep 15 2019 in the Form 7004.

There is an option to file Form 7004 through US postal service or electronically.  It is advisable to use registered post to secure receipt as acknowledgment or proof.  If you are an S-corporation, LLC and Partnership, then the Form 7004 for 1120S and 1065 can be sent to IRS Center, UTAH.

Penalties for Late Payment of Tax

There are certain penalties for late payment of tax as follows;

  • If S-corporations do not file Form 1120S by the due date or by the extended due date, then the IRS will impose a minimum penalty of $195 for each month or part of the month the return is late multiplied by the number of shareholders
  • When the S-corporation fails to file Form 941, and it has any unpaid tax balance, a penalty of 5 to 25% may be assessed on the balance for each month or partial month the tax is late
  • Similar penalties apply to filing Form 940 after the due date as well.

S-corporations can get audited by IRS mainly for minimizing the payroll taxes.  During the audit the IRS will always try to re-structure portion or all of the profit distributions as salary compensation, thus allowing them to collect payroll taxes on the salary side.  If you have received a letter from IRS for an S-corporation audit, know your rights and act accordingly.  Consulting an IRS expert is what should be your next step.  IRS Audit Group can help you with your tax audit representation.  Contact us for free consultation with one of our Tax attorney team members.

E-mail to: – info@irs-audit-group.com/ Call Us @1-888-300-6670

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Tax Filing Due Date for S- Corporation, LLC & Partnership – September 15, 2019 is the Extended Due Date for Filing

S-corporation and LLCs can opt for the extended due date for tax filing till September 15, 2019.  Per rule, S corporations to file tax on March 15, and they can seek for extension by filing Form 7004 and deposit what they estimate to owe.  This extension is valid for six months and the extended due date for S-corporation is Sep 15 2019 for 2018 calendar tax filing. Single member LLC’s or sole proprietors’ need to document Personal Online Tax Extension or the paper variant of IRS Form 4868 and mail it by means of the U.S. Postal Service for such extension.

S-corporation stands for Subchapter Corporation or small business corporation.  It is a special tax designation granted by the IRS in which S corporations do not pay any income taxes.  Instead, the S corporations can elect to pass corporate income, losses, deductions, and credits to their shareholders for federal tax purposes.  Shareholders of S corporations report the flow-through of income and losses on their personal tax filings and are evaluated at their individual income tax rates.

To be eligible for S corporation status, one must meet the following prerequisites:

  • Be a domestic corporation
  • Have only allowable shareholders
  • like individuals, certain trusts, and estates
  • cannot be partnerships, corporations or non-resident alien shareholders
  • should not have more than 100 shareholders
  • Have only one class of stock
  • Certain financial institutions, insurance companies, and domestic international sales corporations are not eligible.

A limited liability company (LLC) is a corporate structure to protect the business owners’ personal assets from being liable to their business losses.  Limited liability companies are hybrid entities with combination of a corporation’s characteristics with those of a partnership or sole ownership.

LLCs provide flexibility to business owners in taxation.  The IRS does not treat an LLC as a separate tax entity but depending on the situation, an LLC may elect to use corporate tax rules instead of being treated as a partnership.

Difference between S-corporation and LLC

  • The owners of LLCs are not personally responsible for business debts and liabilities.  The owner of the business of S corp is responsible for its debts and liabilities.
  • In S-corporation type of ownership will be Stock, and only one class. S-corporation and LLC are separate legal entities created by a state filing.
  • S-corporation and LLC are pass-through tax entities. Therefore, income taxes are not paid at business level but are passed-through owners’ personal tax returns.
  • LLC is taxed as an S-corporation means the owner’s salary will be business expense so the owner will report salary and other business profit in their personal income tax return. Their salary is taxable.
  • The time of dissolving of LLC is specified in the Operating Agreement, or upon the loss of a member, unless other members agree to continue. But, in S-corporation it is specified as indefinitely.

 

The Due Date for S-corporation to file tax returns is 15th of March every year.  Form 1120S needs to be used by the corporation to report all financial activity.  It has to attach Schedule K-1 for each shareholder that will provide information about shareholder’s share of taxable income.  The corporations which failed file tax returns by March 15 need to seek extension by filing appropriate forms.  Such extension is valid for six month and the extended due date for S-corporation is Sep 15 2019 for 2018 calendar tax filing.  The shareholders who pay tax on the corporate income are subject to the same deadlines the IRS imposes on individual taxpayers, which in most cases is April 15 every year.

 

The IRS never acknowledges receipt or approval of your tax extension but they notify through US postal mail in case the filing is rejected.

 

IRS Audit Group is a team of tax experts primarily specialized in Internal Revenue Services (IRS) Tax Audit Representation.  If you have missed your tax filings or payments and received letter from the IRS for tax audits, don’t hesitate to call us, our certified professional cooperate and work with all IRS offices nationwide and can help you to solve your tax issues.

Call Us: – 1-888-300-6670 or email us:- info@irs-audit-group.com

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Does the Internal Revenue Service (IRS) call? What to do when the IRS call you?

 

There are many reasons for IRS to initiate a call with tax payers.  The IRS call you to clear their doubts on your income, may be in return filling or may be bills that you presented during filling on return and more.  But a telephonic call to the tax payers is not the first move IRS take.

 

How does the IRS call you?

There are generally three ways the Internal Revenue Service can contact you: a mailed letter, a telephone call or a personal visit.  The Internal Revenue Service will not initiate a telephone call as the first step to contact you.  The first step in communicating any tax payer will be a letter or notice through US postal services.  This letter will explain you why the IRS is contacting and what a taxpayer should do further.

If the IRS agents feel the necessity to contact the tax payers to discuss about the choices for resolving delinquencies and collecting delinquent taxes and tax returns, the IRS Call only after those initial letters sent.

 

Below are some reasons for which IRS can communicate with you:

  • Change or reduction in refund you anticipate.
  • Queries on documents for tax return filed.
  • Additional information in order to process the tax return.
  • To verify one’s identity.
  • To alert on changes or corrections on the tax return.
  • To inform about any delay in processing the return.
  • If you have an outstanding tax balance

 

IRS scam calls

Certainly the Internal Revenue Service will never call an individual and threaten them with legal action or harass them over debts.  The IRS also doesn’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information.  There are instances of fake IRS calls happen as well.

The IRS impersonation scams are happening with different variations.  In all such fake IRS calls, the scammers pretend to be calling from IRS and provide fake identity.  In general, the scammers demand immediate payment of taxes by a prepaid debit card, gift cards or wire transfer.  New complaints from people reveals that these scammers try to get Social Security number, Tax Identification number and file fraud returns to claim large refund.

The website of the Treasury inspector general for tax administration has an online form to report I.R.S. impersonations.  Another option is to file a complaint with the Federal Trade Commission, which investigates consumer fraud.

 

How to find these scam calls

  • Use common names and fake IRS badge numbers.
  • Demanding payment via a prepaid debit card or wire transfer. The IRS will never pressurize anyone for either of these payment methods.
  • Spoof caller ID information to appear as if the call is from IRS
  • Threatening to arrest by sending local police if the payment is not done immediately. The IRS also cannot revoke a license or immigration status.

 

What to do when the IRS call you?

When IRS sends a notice and calls you, it is important to understand the reason for calling and understand their requirements or any documents that you missed during filling.  The taxpayers have the opportunity to question or appeal the amount owed and IRS should provide enough time to do so.  It is important for the individual to understand their rights and act accordingly.  Get an expert tax attorney to know your rights and options to take informed decision on your tax audit process.  IRS Audit Group can support with Tax Audit Representation and State Audit Representation on behalf of you by filing power of attorney.

Call us: – 1-888-300-6670 Email to:- info@irs-audit-group.com

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What could happen if you ignore IRS Notice or Letter?

It is not necessary that an assessment review letter from the IRS implies that you essentially owe back duties.  It could be a straight forward book keeping mistake or another reason.  The most widely recognized reason behind an IRS review used to be related to off-base name or Social Security number recorded.

The IRS sends notice or letter asking additional tax payments or sometimes for more information about return filled.  If they owe additional taxes, the IRS will also mention such information while sending notice or letter.

IRS issues first notice or letter in mail to the person or organization clearly providing the details regarding a disparity. It also notes that IRS requests to audit the records.  It is highly advisable to immediately start gathering the requested documents and send back with a summary to the IRS.  If you do not have or missed any documents that are requested by the IRS, then contact a tax audit lawyer who can help you with further procedures.  But on the flip side, what happens if you ignore the IRS first notice or letter, the IRS will issue second notice within a span of two to four weeks from the issuance of first letter.

 

The IRS’ second notice will provide details about appointment to attend for auditing all your tax documentation papers.  But again, if you ignore this letter from the IRS, then you become seriously delinquent tax debt individual/organization.  The IRS may take legal action such as wage garnishments, freezing bank accounts and investments, and possibly jail time.

Here is a summary of possible consequences when you ignore IRS Notice or Letter:

 

  • Substitute for a Return: If the notice is about 2566, then IRS is mentioning that you have not filled a tax return. Therefore IRS will file substitute returns which will be always in favor of IRS and against the taxpayer.  IRS use the information available like W-2 or 1099 for Substitute for Return (SFR) for all the unfilled years based on the information on those tax documents.  The IRS will take every bit of gross income that they have on your reports, ignore any deductions and tax it at the highest rate.  Once again the tax return will be sent to the taxpayer in mail with “90-day letter” to respond.

 

  • Assets are seized: Failure to respond to the “90day letter”, the IRS will close the file and start the procedure to collect the debt. First thing the IRS can do is to freeze your bank account, collect from your wages etc.  The IRS can seize your personal property and real estate, even if it is not in your physical possession.  The IRS also have right to take payments from the clients, rent from tenants and persons retirement funds.  The IRS can contact whoever is holding receivable fund from the tax payer and can get them to send it directly to the IRS.  The IRS will then provide you with the sale notice and announce the pending sale to the public, generally through local journals or government leaflets.  Usually, the IRS will wait at least 10 days before selling your property after providing government notice.  Cash from the deal pays for the expense of seizing and selling the property and, at last, the duty obligation will be paid.  On the off chance that there’s cash left over from the deal in the wake of settling off your regulatory expense obligation, the IRS will reveal to you how to get a discount.

 

  • Passport revoked or Denied: The IRS has authority to deny passport from state department if you have seriously delinquent tax debt. Therefore state department generally will not issue back the passport until you get clearance from the IRS.  In case of new passport application The State Department will simply reject your passport request until official approval from IRS.  In case if the person is in abroad then state department declares passport is withdrawn from the abroad and restricted validity passport can only be issued by the State Department for immediate return to the United States.

 

It is important to act smart immediately you receive the IRS Notice or letter. IRS Audit Group’s Tax Professionals, CPA’s, tax attorneys have strong expertise in IRS tax issues. We know the tax payers’ rights and help them to facilitate the audit process by representing them throughout the entire process.

 

Contact us immediately and get free consultation to understand the scope of your tax issues.

info@irs-audit-group.com Ph: 888-300-6670

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Tax Audit Representation | A Nationwide Effort

Tax Audit Representation | A Nationwide Effort

In this article, you will learn about IRS Audit Group’s national services in tax audit representation. Scroll down to learn how you may benefit from a Free Consultation with an IAG Tax Representative.

There was once a time that we only catered to a local audience, however those days are over and we have expanded our services and found success in helping Americans nationwide solve their tax problems. By taking major steps towards greatness, our services cater to those in need of both state and/or federal tax representation.

Audit defense in our organization has no limits. Whilst IAG offices are located both in Los Angeles and Orange County, California, our certified professionals cooperate and work with all IRS offices nationwide. Needless to say, our efforts go far beyond Southern California sunshine.

For example, if you are a New York resident that needs assistance, a tax audit representative will smoothly transfer your case to our offices in the Southern California region and provide the utmost care — we’re in this together.

Audit Defense

Matters related to tax audits are delicate issues that should not have borders. Understanding the sophisticated structure of taxes, many struggle to understand the integral pieces that come with it. State and federal matters may often be intimidating for clients to comprehend based on the complexity of the American system; rightfully so, our team understands the legitimacy of various forms of taxes. Based on our experience, we have helped thousands of individuals save millions by teaming with IRS Audit Group to represent their audits in unique circumstances against the State or the IRS. Why do we use the term unique? Well, each individual presents a unique case of which we help them attain the best scenario possible.

How Do I Get Started?

Step 1: Gather your documents

Don’t panic, but don’t delay your actions. An IRS (or State) tax audit may be conducted by a mail or in-person interview. The purpose for the interview is to review taxpayer records and understand the details of the tax return.  Our job is to make sure you’re covered and safe from any events that may further exacerbate your financial state. But first, you must gather all necessary documents that will help expedite the process of helping your tax circumstances. To avoid communication that may backfire, we highly recommend to first speak with a tax attorney and weigh your options before an IRS.

Step 2: Free Consultation | Meet with an IAG Tax Professional

After gathering all the necessary documents, it only makes sense to assess the situation at a professional level. IAG Tax professionals offer free consultations to all residents and taxpayers for their own benefit of knowledge and comprehension.

Upon your free consultation, provide your certified tax attorney the necessary documents asked by the IRS or State. This process will smoothen and quicken our scope of work when clients provide their tax returns and supplemental documents. Additional documents may include pay stubs, invoices, bank statements, and more.

Step 3: Research for Ideal Outcome in Tax Audit Representation

After a free consultation, IRS Audit Group will research and calculate the cost of penalties and interests to review the benefits in favor of the taxpayer. We make sure to explain in detail the total costs; and advantages and rights of retaining a tax audit representative. Unlike other organizations that charge by the hour, we charge a flat fee for our services with no hidden fees or charges by the hour. We have a Money-Back Guarantee Policy: if your savings result in an amount lower than our fees, then we provide a refund to our beloved client. Contact us for more information regarding the policy, or scroll down to our additional services to find out what other services we provide for our clients.

Additional Services

  • Individual Income Taxes
  • Business Income Taxes
  • Offshore Accounts and Foreign Bank Account Reporting (FBAR)
  • Tax Penalties
  • Employment Taxes
  • Estate and Gift Taxes
  • Payroll Taxes (Trust Fund Recovery Penalty)
  • Employee vs. Independent Contractor Classification

For more details, contact us to learn more.

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Avoiding Sales Tax May Result in an IRS Audit

Topics around tax include a wide array of segments; one of which includes sales tax. For those who may be unfamiliar with the definition of sales tax, sales tax audit is the examination of a company’s financial documents by a government’s tax agency to verify if the proper amount of sales tax has been remitted to the proper authority.

Use tax, by definition, is a tax on the “storage, use, or consumption of a taxable item or service on which no sales tax has been paid.” It stands as a complementary tax if the sales tax was not charged in a given transaction. Furthermore, there are two versions of use taxes – Consumer Use Tax and Retailer Use Tax. Consumer Use Tax is a tax on the buyer on taxable items purchased in the circumstances where the vendor did not collect either a sales or vendor use tax. Retailer Use Tax applies to purchases completed by a vendor to a customer located outside the vendor’s state or sales between states if the vendor is legally registered in the state of delivery. For example, if the purchase was made online in California but the vendor’s state is New York, then Retailer Use Tax applies. So when does the IRS come into the picture?

In this scenario, the proper authority is either the federal government in the form of the IRS, or your local state government. Regardless, it is imperative to note that whatever you do not know may play against you, and that avoiding sales tax may result in an IRS Audit. An audit from the IRS can feel uncomfortable, induce anxiety, and often leads to a legal dispute. To avoid legal disputes, tax audit firms help those in need to provide the essential documents. So, what really is the objective of the IRS in this case?

The objective of the IRS is to maintain transparency between the government and its citizens. All citizens must file and document their tax returns. Therefore, IRS agents search for underreported sales and use taxes, which results in auditors contacting taxpayers in regards to any suspicious, or simply unclear activities within their documents. There are various forms of contact from the IRS. Such being: written notifications, or visits to your business or home location. Regardless the form of contact, the IRS is searching for information that may be insufficient in their eyes.

Failure to submit the proper documentation in taxes may result to fees and penalties that substantially stresses on a person’s financial state. Avoid penalties and fees by staying prepared, or starting preparation as soon as possible. We highly recommend speaking with a professional.

Some Tips

For your convenience, here are a few tips to learn how you can avoid tax problems and manage your sales and use tax audit:

The following are a few practices that IRS Audit Group recommends:

  1. If you do receive a notification from the IRS, make sure to check the Official IRS Governmental Page to research on your own free time.
  2. Consult with a sales tax expert, CPA, or other external representative when audited by the IRS. Even if you have not been notified by the IRS, it is important to regularly check on your status to make sure for your records. Speaking with an expert further helps the process by speaking about the audit process and elaborating on points that may need clarification.  
  3. Prepare all necessary documents that you may need for your external representative to expedite the process if you have been notified by the IRS. If you have not been notified by the IRS, it is still safe practice to have your documents prepared, organized, and filed.
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IRS Audit Group

Tax attorney in Beverly Hills, California

468 N Camden Dr #200,
Beverly Hills, CA 90210, USA

Call: +1 888-300-6670

Hours

Sunday8:00am-5:00pm Monday8:00am-10:00pm Tuesday8:00am-10:00pm Wednesday8:00am-10:00pm Thursday8:00am-10:00pm Friday8:00am-10:00pm Saturday8:00am-10:00pm