We get it, filing taxes is not something everyone loves to spend their time on. However, it is crucial to read and understand what is being asked of you, especially if you’re submitting your taxes electronically on your own time. It’s easy to fall into the trap of rushing just to get it done.

What if you work with a tax preparer? Well, the IRS can still audit you if you; fail to disclose all sources of income you may have, give the tax preparer insufficient information to complete your tax return to the fullest, or giving incomplete tax documents to the preparer. The IRS could care less if this was done accidentally or purposeful, which is why rushing will get you nowhere.

What are some reasons for a tax audit?

You leave out sources of income

This is the easiest way taxpayers can face a tax audit. This is very common in sole proprietors and independent contractors who also receive a 1099 form instead of a W-2. Many may not fully understand how much of a tax burden a 1099 form can cause. So, when a tax bill arrives that doesn’t look very appealing, it’s common to not disclose that information to keep 100% of taxpayers income tax-free. That isn’t a smart move in this scenario. The IRS has systems that are created to catch these errors when the numbers don’t quite add up.

You use whole or rounded numbers

Rounding your numbers may seem ideal and makes the calculations a whole lot easier and less time consuming, but it also raises a red flag in the IRS system. Why? Seriously, what are the odds of having an even number on your net earnings, or deductions? Slim to none. While it usually never gets this far, taxpayers can face criminal and civil charges providing inaccurate information. So it’s best to do the math right to avoid any consequences.

You file many deductions

Tax deductions are a good thing for many. It keeps you from paying taxes on certain expenses. However, deductions such as “home office deduction” raises a red flag due it being commonly misused by individuals. How will the IRS know if the deductions are legitimate? Well, they usually have a general idea due to your income level and other quantitative data they have gathered from similar filers. So, do not fall into the trap of thinking you can outsmart the IRS 100% of the time. It doesn’t happen that way for everyone.

How likely is that you’re going to get audited?

Lucky for taxpayers, while there’s still a chance of an audit, the chances are slim to none. 99% of the common persons’ taxes glides through the IRS system without being audited. As for the other 1%, of course, they’re being audited. If you’re a millionaire, your chances of being audited are 1 in 10. And if you’re a white house official, your chances are 100%. It may not be every year like Donald Trump’s situation for the past 12 years, but it will happen eventually to them.

As mentioned before, even though the chances of an audit are slim for the average person, anything is possible. $1 spent on a tax audit, brings in $4. Do the math. Do you think the IRS is going to let everyone continue to slide by without an audit? Not for long because it makes them more money. And let’s face it, all the IRS wants is your taxpayers’ dollars.

When filing your tax returns, make sure to take your time. The consequences outweigh the cost of telling the truth.

Telephone Number: (310) 498-7508
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If you haven’t heard of Renee M. Schoenberg, you will now. Her work is all over the map in multiple countries! Renee is a DLA Piper Senior Counsel who has structured and helped so many nonprofits across 5 continents. She has helped so many that she can’t even name some of the countries that they’re located in right off the top of her head.

Some of these organizations work in an array of fields which include; fighting global hunger, offering less fortunate D.C. residents affordable legal services, sparking interest in science experiments for Chicago youth, and much more!

What makes these projects impressive isn’t just the projects themselves, but the complexity and new problems that arise during the projects. All of the causes that Schoenberg supports brings about new technical challenges when applying for tax-exempt status from the Internal Revenue Service (IRS).

This is the reason for Renee becoming interested in doing work for the public good in the first place. She enjoys the challenges that arise by overcoming them, and the emotional response that comes with overcoming these challenges comes second.

Renee has earned many achievements from doing this as well. She was one of the 5 recipients recognized for her “outstanding commitment” to volunteer legal services.

“To me, it’s the pinnacle of recognition, like a lifetime achievement award,” according to Renee.

It’s not a surprise that Schoenberg is someone who is dedicated to perfecting her craft and making a difference. Many wonder how Renee first started getting into the act of her pro bono work. Well, Renee first started helping nonprofits as a spinoff from her trust and estates work. She knew of a family who wanted to underwrite a psychiatrist’s fees so that people of lower-income can afford it.

Due to fear that the psychiatrist was trying to turn his organization into a tax-exempt organization, Renee’s application was rejected by the IRS. However, the second application was approved once she showed how the psychiatrist was charging less than the market value price for low-income customers. This sparked her interest even more in learning how to structure many different nonprofit organizations.

Renee went on to learn that the key to success when applying for tax-exemption is “Knowing what the hot button issues are going to be and diffusing them in the application.” She gives credit to thorough research to accomplish this.

Anne Geraghty Helms, who is DLA Piper’s U.S. Pro Bono Programs director and counsel, refers to Schoenberg as the nonprofit guru of the office. She consistently supervises and mentors young tax attorneys or young tax lawyers who are interested in her field, while helping the firms thousands of tax attorneys or tax lawyers located in over 30 countries.

Renee is serving a good cause in the world. No one has ever heard of Renee “declining” someone who may be in dire need of support. The fact of the matter is that they’re not too many Renee Schoenberg’s out here, that’s for sure.

Telephone Number: (310) 498-7508
[email protected]

There’s no question that small business owners are good for the economy and our country as a whole. They create jobs and provide helpful services and products for consumers. However, some small businesses may not have the resources or staff available to handle their finances and accounting procedures in the company, which makes the actual owners themselves man the books, and do as they please with earned capital. When the tax is evaded purposefully it is a federal offence even your tax attorney or tax lawyer won’t be able to help.

 Some may be tempted to falsify earnings since they’re handling all of the calculations. This causes many business owners do not satisfy tax obligations, whether it’s accidental or purposeful, that they’re required to follow.

Last August, Thomas G. Klocker was fined $500,000 and sentenced to 6 months in federal prison due to tax evasion. The IRS investigation that followed showed that he used business money for expensive vacations and other personal expenses not related to the company.

In Thomas Klockers’ case, his actions weren’t due to lack of knowledge, it was done purposefully. According to the judge who was over the case, his actions were “very calculated and made to cheat the system.” According to prosecutors, Klocker committed tax evasion by lying to his tax preparers by telling them his family vacations were business trips and reporting fake losses.

Klocker purposely misused company money for his comfort and lied about the use. His tax attorney tried to argue that he was a man of the community and did lots of charitable work, which he did. However, that didn’t stop him from being sentenced to 6 months in federal prison, along with a $500,000 fine.

No one wants to be Thomas Klocker in this case. Especially when you have to face a highly experienced and aggressive prosecutor from the federal government. He also paid more than $ 1.2 million in restitution before being sentenced. With that being said, it’s best to understand the tax obligations that all businesses must obey and follow. The lavish lifestyle and additional income are not worth facing months or years in federal prison, along with a hefty fine and restitution that has to be paid. So appoint a tax lawyer or a tax attorney and file your tax in time and correctly.

Telephone Number: (310) 498-7508
[email protected]

The Internal Revenue Service (IRS) loves to give the impression that taxpayers have many rights to IRS actions. This stands as true. However, they fail to mention how limited these rights are. In other words, they’re less than desirable. The tax system works against taxpayers. It’s as simple as that.

The IRS has been granted a massive amount of authority to assess and collect taxes, even without a judge or jury has to be involved. Many people tend to turn to the individual who prepared their tax return when battling a tax controversy or an audit. This method is fine because it does solve the majority of tax disputes.

However, tax controversy procedural rules, and correctly advising taxpayers of their limited rights to court hearings are all things you should want your tax attorney or tax lawyers to know. For this reason, the tax preparer certified public accountant or enrolled agent isn’t a good idea. If your rights aren’t correctly exercised, the IRS has the right to collect on taxes without a true fight.

Once the audit is done, the IRS will deliver a Notice of Deficiency if the IRS believes the taxpayer still owes them money. Often, accountants and clients still believe they can work with the auditor on various issues. This couldn’t be further from the truth. The Notice of Deficiency acts as the final decision made by the IRS and cannot be taken back in most cases. If for whatever reason, the Notice is rescinded, then it has to follow the procedures outlined in Revenue Procedure 98-54.

The Notice of Deficiency is considered legally assessed after 90 days and the IRS will certainly begin collecting on it if the taxpayer doesn’t properly contest the Notice of Deficiency that is.

The only two options at this point will be to either; dispute the matter in tax court, or pay the tax for now, and file a claim for a refund in federal court later. Of course, tax court is the most appropriate for taxpayers. They even offer an extremely simplified process for small cases. However, the catch is that small cases are not able to be appealed.

Cases that do not make it to the Tax Court must be brought to the Federal District Court or the U.S Court of Federal Claims, which is very expensive. Where does that leave the taxpayer? That leaves them having no choice but to pay since the federal court doesn’t make financial sense.

The “Flora Rule”, which is a huge rule that works against taxpayers, states that the taxpayer must pay the tax believed to be owed before a federal court will take on their case. Lawsuits filed against the IRS in federal court every year is only a few hundred, while tax court has tens of thousands.

The system has put up many barriers that prevent the taxpayer from getting a fair trial. Due to this, every notice that you receive from the IRS should be taken seriously and handled with urgency.

If you feel as if you are getting audited after receiving notice from the IRS, it’s crucial to see a professional tax attorney or tax lawyers who have extensive experience in tax controversies immediately. An experienced tax attorney or tax lawyers will help you go over all of your available options, and guide you to the most appropriate solution.

Telephone Number: (310) 498-7508
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Many businesses and individuals fall victim to IRS penalties due to lack of knowledge. There’s no doubt that the IRS has lots of rules and regulations that may be confusing to some who are new to it. If this is the case for you, you most likely need the services of an experienced tax attorney.

Investing in a tax attorney can save yourself and your business from; criminal charges, interest, and IRS penalties that can sneak up on you. Tax attorneys are simply lawyers with extensive knowledge in the very complicated and technical field of taxes.

When is the right time to hire a tax attorney or tax lawyers?

1. If you have a taxable estate and need to file an estate tax return, you need a tax attorney or tax lawyers. You will lose out on lots of money if you don’t have a tax attorney in your corner to help you with complicated estate planning strategies.

2. If you’re starting a business, especially an LLC or corporation, you will find a tax attorney or tax lawyers useful for legal counsel. This will also help you decide on which business structure will make the most sense for you, from a financial standpoint, in the beginning, stages.

3. When conducting business internationally, you are entering into different territories where the laws and regulations are different from that of the USA. With that being said, having an attorney handy will help you with creating appropriate contracts, and other legal matters related to business.

4. When bringing a case to the IRS. Many cases brought to the IRS usually falls on death ears. An attorney will make the process easier and give you a fighting chance.

5. When there’s a criminal investigation against you brought by the IRS, this shouldn’t even be up for discussion. There’s a 100% chance a tax attorney will be needed.

6. If you commit tax fraud (which we don’t encourage), a tax attorney can help with protection on privilege.

7. When you want an independent review of your case in front of the US Tax Court, an attorney is needed 100% of the time.

What does a good tax attorney or tax lawyers look like?

At the minimum, tax attorneys have a Juris Doctor degree and should be admitted to the state bar. However, you want a tax attorney with in-depth training in tax law. Some may even have a master of laws degree in taxation. Simply put, the more education and expertise your attorney has in taxes, the better. Choosing a good tax attorney can save you a prodigious amount of money while hiring a basic lawyer can cost you money.

When handling business in general, you need a tax attorney. This is especially true if you have something to lose, which most of us do. This can be personal finances, business revenues, or your freedom (if you’re fighting a fraud case that could lead to jail time). Either way, make sure you understand when it’s time to hire a tax attorney, and how to pick a good one.

Telephone Number: (310) 498-7508
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There’s no doubt that a small business owner has an overwhelming number of responsibilities that are all calling for your attention at once. However, being pressed for time isn’t a good thing because you tend to ignore the little things that can cause more stress in your life. Yes, we’re referring to an audit. While an audit isn’t something “little”, the mistakes that can bring about an audit are minor with the help of a tax attorney or a tax lawyer. The thought of a tax audit representation makes small business owners cringe inside. Although, it isn’t guaranteed that you can stop an audit from ever happening, there are some steps that you can take as a small business owner to stop it from happening in the meantime.

An audit typically involves the IRS going through your income and expenses to make sure that the amounts reported are actually accurate. During an audit, the IRS is mainly looking for; exaggerated deductions, and unreported or under-reported income. You are obligated to provide all documentation as requested by the IRS.

In order to avoid the unnecessary hassle of an audit, here are 7 red flags that should be avoided at all costs to reduce the risk of your small business being audited.

1. Having a net loss profit for 3 out of 5 years

Your business must be able to have a profit for at least 3 years out of a 5-year period. If not, the IRS will become really interested in why you’re not returning a profit but manage to stay in business.

2. Late filing and late payments

Not meeting deadlines is against your obligation and will create unwanted attention on your business, along with additional money (penalties) that will need to be paid. Always try to pay on time or at least inform the IRS that payment will be late.

3. Shareholders who are also employees getting paid big salaries

All employees should be given reasonable salaries based on their; skills, type of industry, and experience. Paying excessive salaries simply because they’re shareholders is a surefire way to the IRS wondering what else you may be up to.

4. Prodigious Deductions for entertainment, food, etc.

The best way to prove that your deductions are accurate consists of keeping all receipts. If receipts and extensive documentation isn’t available, that automatically makes you look guilty in the IRS eyes. Especially since this is a very common method individual used to get out of paying taxes.

5. Transferring income to tax exempt organizations such as nonprofits

This is a form of tax evasion in its finest form. Giving away money to charities isn’t an issue. However, it becomes an issue when it’s solely for the purpose of getting out of paying taxes on it. The IRS will be more than happy to send an audit your way and see if your “charitable” donations check out.

6. 100% Vehicle Business Use

Again, the IRS wasn’t born yesterday. Deducting money for business vehicle use is one of the oldest tricks in the book. If the vehicle isn’t designated for complete business use, it’s good to keep logs of mileage and the purpose of each trip.

7. Majority Cash Businesses

This is where places like car washes, barbershops, and bars have to be really careful. No matter what precautions you take, you’re always going to be under the magnifying glass of the IRS due to the easiness of hiding and underreporting income.

Small business owners are already up to their necks with busy work. However, it is important to document everything you do and keep receipts. You can even potentially create a system that only important files for compliance are uploaded to.

The last thing you need is the IRS knocking at your door for an audit. If you do receive a notice, do not ignore it as some businesses do. It’s in your best interest to contact a tax lawyer. Although these steps do not guarantee the IRS will audit you, it doesn’t hurt to try your best to prevent the hassle.

Telephone Number: (310) 498-7508
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According to CBS News, filing your tax returns could raise the question of how long you should keep them, just in case the IRS decides to audit. If you come across this issue, it is important to be aware of the three types of the statute of limitations. This is found under the Internal Revenue Code, provided by Section 6501.

The first is a three-year statute of limitation on tax audits. Filing a tax return on the extension has the downside of also extending the time your return is subject to an audit. For example, filing a tax return for 2011 on April 15, 2012, would give the IRS exactly three years to audit it. However, if you request an extension and file on Oct. 15, 2012, the IRS will still receive exactly three years after that date to audit your return. The tax audit representation can be done by self and with the help of tax attorney or IRS lawyers. Most of the time the taxpayer find IRS to be frightening, frustrating, time-consuming, intimidating when they seek tax relief, this is one of the major reason for hiring a tax attorney.

Section 6501 also states the second statute of limitations. Overestimating your cost basis or holding securities for a long period of time could bring forth underreported income. This could result from taxpayers neglecting a gross income that surpasses 25 per cent of what was originally stated. In this case, the three-year limit is doubled to six years.

Assessing a tax return has no time limit if a return is false or fraudulent according to the third statute of limitations. This will also occur if no tax return is filed at all.

Having a good understanding of these three bills as well as an effective tax attorney can prevent future questions or frustrations with filing tax returns.

Tax problems? Call us today for a free consultation. We are a team of Lawyers, CPA’s and Enrolled agents who Specialized Exclusively in Tax Audit Representation with over 15 years of experience. We are located in Beverly Hills, California. Our services are nationwide. We work with all IRS offices throughout the nation. Because the IRS is a Federal Agency, we can request your case to be transferred to a local IRS office (Los Angeles, California).

[email protected]

(310) 498-7508

A tax audit is when the IRS decides to examine your tax return a little more closely and verify that your income and deductions are accurate. Typically, your tax return is chosen for audit when something you have entered on your return is out of the ordinary.

There are three main types of IRS audits:

• A Mail Audit simplest type of IRS examination and does not require you to meet with an auditor in person.
• An Office Audit is an in-person audit conducted at a local IRS office which is more in-depth than mail audits and usually includes questioning by an audit officer about the information on your return.
• Finally, a Field Audit in which case an IRS agent will conduct the audit at your home or place of business.

The IRS might select you to be audited if:

• There are mistakes or math errors on your tax files.
• You fail to include a Form 1099 or additional income.
• You claim too many charitable donations.
• Report too many losses on a Schedule C.
• You claim too many business expenses.
• You claim a home office deduction.
• You repeatedly use neat and rounded numbers.

The tax audit representation can be done by self and with the help of tax attorney or IRS lawyers. Most of the time the taxpayer find IRS to be frightening, frustrating, time-consuming, intimidating when they seek tax relief, this is one of the major reason for hiring a tax attorney.

If the IRS imposes an audit on your tax returns, contact a tax attorney for IRS audit help.

Tax problems? Call us today for a free consultation. We are a team of Lawyers, CPA’s and Enrolled agents who Specialized Exclusively in Tax Audit Representation with over 15 years of experience. We are located in Beverly Hills, California. Our services are nationwide. We work with all IRS offices throughout the nation. Because the IRS is a Federal Agency, we can request your case to be transferred to a local IRS office (Los Angeles, California).

[email protected]

(310) 498-7508

The IRS will always notify you by mail if you are being audited. IRS states that they will never notify you over a telephone call, so if you receive a call, chances are it is a scammer trying to deceit you.

If you are selected for an audit it is not always suggested that there is a problem and it can be resolved with the help of an IRS tax attorney. In case a taxpayer get into trouble with IRS, they can get help from a tax attorney or an IRS lawyers 

The IRS uses several methods when selecting taxpayers for audits. One method is random selection and computer screening. In this case, it could be likely that your return is selected based on a statistic formula. The National Research Program, conducted by the IRS, compares your tax return against “norms” for similar returns. These “norms” are developed from audits of a statistically valid random sample of returns.

The IRS also looks into your returns if you are involved with issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit. This method is called Related Examinations.

After you are selected for audit, an experienced auditor reviews the return and decides whether or not to accept it. If something questionable is noted, the auditor forwards the return for assignment to an examining group.

Major Reason why IRS is Notifying you

The major reason why IRS is notifying a taxpayer is when they have any tax balance, the refund as big as we expect it to be. IRS would like to clarify some doubt on the tax returns which was filed by the taxpayer. IRS might need some additional detail for processing the tax returns. The IRS might be trying to verify the identity of a person. IRS notifies the taxpayer for making changes or correction which has to be made in the tax returns. IRS also notifies the delay in processing the tax return.

Tax problems? Call us today for a free consultation. We are a team of IRS Lawyers, CPA’s and Enrolled agents who Specialized Exclusively in Tax Audit Representation with over 15 years of experience. We are located in Beverly Hills, California. Our services are nationwide. We work with all IRS offices throughout the nation. Because the IRS is a Federal Agency, we can request your case to be transferred to a local IRS office (Los Angeles, California).

[email protected]

(310) 498-7508

Most people question whether they should represent themselves in an IRS audit or hire a tax attorney to represent them. The answer is simple: hire a tax attorney. Taxpayers will benefit tremendously from securing a professional tax expert to represent them before the IRS. Even if the tax expert doesn’t bring you a successful outcome, they often reduce, if not eliminate, any additional fee the IRS expected you to promptly pay.

Another reason for not to represent yourself for filing tax is because you might say something that will be self-incriminating and not even realize until it is too late. Hiring a tax attorney will help you avoid making that mistake. Tax attorneys are experienced in dealing with the IRS and understand and practice tax law as a career. There is no better representation than that of a tax attorney. Auditors will also word phrases intentionally to trick you into confessing something you otherwise would not have, whereas if you had a tax expert representing you they could be ignorant to some of the questions asked, consult with you and then respond to the auditor.

Can a Taxpayer Represent Themselves?

Any taxpayer can represent themselves are allowed to represent themselves before the IRS. Most of the time the taxpayer find IRS to be frightening, frustrating, time-consuming, intimidating when they seek tax relief, this is one of the major reason for hiring a tax attorney.

Major Benefits for Appointing a Professional Tax Attorney

The major advantage of hiring a tax attorney is that the taxpayers need not worry about the tax filing and the tensions relating to it. An expert tax attorney can help in resolving all tax-related problems. When you try to pay your tax without a tax attorney the process can be expensive. To get tax relief which you need, must have a specialized knowledge which only a tax attorney can provide.

Protecting your rights is another reason why you should not represent yourself. IRS auditors know that taxpayers who represent themselves are not knowledgeable of their rights and they will use that to their advantage. With a tax attorney on your side, your rights will always be protected. This can be crucial because taxpayers never want to overexpose themselves and expand the scope of their audit. Not only is it more time consuming, but it also adds more unnecessary stress to your already busy life. Some times representing yourself can be beneficial, but for the most part, having a licensed professional representing you is the best shot you have to have a successful IRS audit.

Telephone Number: (310) 498-7508
[email protected]