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Why Not to Call the IRS Without Speaking To Our Tax Professionals

If you’ve had an experience trying to call the IRS, it’s likely you already know better than to try to call them on your own. It’s almost certain that if you try calling, you’ll be met with extremely long wait times, a confusing automated system, and perhaps even a “courtesy disconnect” where they basically hang up on you before you can ever talk to someone. If you are lucky enough to talk to someone, they’ll likely try to divert you to the IRS.gov to get the answer that you’re looking for.

Instead of calling the IRS on your own, you can have our tax professionals at IRS Audit Group call on your behalf. Authorizing a tax professional to represent you on your behalf is simple, easy, and affordable. Having one of our professionals call the IRS on your behalf is highly recommended, especially if it is a more complicated issue that you’re calling about. If you’ve received any type of notice from the IRS, for example, you do not want to stand up to the IRS on your own. Many people will often immediately call the IRS after receiving any type of letter, which typically only makes the problem worse. Our team of tax attorneys, CPAs, and enrolled agents have extensive experience in dealing with the IRS and know how to talk to IRS officials to help our clients reach a successful resolution.

Navigating through an issue with the IRS can be extremely tricky, time-consuming, and potentially even costly. Let our team at IRS Audit Group guide you through any experience with the IRS. Give us a call today at 888-300-6670 if you have any questions about a notice you’ve received, tax law questions, pending audits, or any other tax-related issue.

 

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Problems With Contacting the IRS Yourself

Being Discarded From the System

Now, everything is digital. Automated. Phone calls send you to a machine, or refer you to a website you barely have time to write down before the automated voice is disconnecting you. Attempting to contact the IRS is no different. You still have the likelihood of calling them only to be dismissed, and emails can so easily get lost in traffic. Overall, trying to contact the IRS is difficult, harder than it should have to be. When they hear the average citizens voice, they’re quick to dismiss, which is why having a set of reliable income tax professionals is so important in a quest to contact the IRS.

Running Into More Problems

A risk anyone takes opening themselves up to strangers is the possibility of judgement and suspicion. If you are to call the IRS, especially on account of already piquing their interest due to an inconsistency in your tax filing, they might even get you in more of a cram than you already may have found yourself in. Leave it to the tax professionals. We know how to handle these sorts of situations. It’s our job, and to try and contact the IRS on your own will only make issues more complicated than they have to be.

What We Can Do to Help

Great Representation

The IRS Audit Group is full of passionate representatives ready to work as your personalized tax representatives. We will fight for you. Having the advantage of a real tax professional service is one step in the right direction to resolving whatever IRS or tax issue you may be experiencing. Finding great help these days can be difficult, but the IRS Audit Group will only work in your favor. So, if ever you’re finding yourself looking up a great group of tax professionals near me, be sure to check out The IRS Audit Group in California.

Reliability

It’s always nice to have someone you can count on. Nobody likes a flake. And while the IRS can be a tricky bunch to grab ahold of and contact, our services make it easy to settle any pending issues or conflicts you may have with the IRS. We are a reliable service full of hardworking individuals working to do what’s best, and what’s right for YOU. There is no pride in mediocracy, and we strive to do be the best tax professionals and offer the best tax professional services there is. You can count on us no matter what the issue is. We don’t judge and we don’t hesitate. We are not afraid to be confrontational. We will fight the matter with an assertive force and ensure your conflicts with the IRS are resolved civilly.

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Get Ready, Tax Season 2018 Starts January 28th

When Does Tax Season Start?

2019 is the second year in a row that tax season, which in most years has typically started in the third week of January, will get off to a late start. A few days ago, amidst the government shutdown, the IRS announced the January 28th start date. Beginning January 28th, the IRS will accept paper and electronic tax returns.

Impact of Government Shutdown on Tax Season Dates

People throughout the nation were concerned what effect the government shutdown would have on the start day, and more importantly, on refunds. Fortunately, along with the start date, IRS Commissioner Chuck Rettig announced earlier this week that taxpayers would receive their refunds on time.  

Other Factors Impacting Income Tax Season

In spite of the government shutdown, what most experts are saying is the real cause of this delayed start is the new 1040 form that IRS officials created for this year. Taxpayers will no longer use Form 1040A or 1040EZ, but instead, everyone will complete the same Form 1040, which has six new schedules. The IRS claims most people will only need to complete Form 1040 without any of the new numbered schedules.

Important Reminders for 2019 Tax Season

Below, we highlight a few important things to keep in mind as tax season gets underway.

  1. As always, the IRS encourages people to file electronically: Whether you’re using a software or a professional tax preparer, it’s always important to file electronically to ensure you get your refund on time. In addition, filing electronically helps avoid errors that could lead to red flags.
  2. When does tax season end? Monday, April 15th is Tax Day 2019, meaning it’s the last day of tax season. You don’t have to rush to submit your tax returns right away on January 28th, but we also suggest to file before the April 15th deadline to avoid having to rush and risk making mistakes.
  3. Contact your tax preparer sooner than later: Especially given all of the new tax reforms that go into effect this year, it’s important to give your tax preparer the time to be able to review all of your documents and make sure everything gets filed correctly.

 

The tax forms 1040,1120,1065. Tax Day concept.

By making sure you follow these simple steps, you put yourself in a better position to make filing your taxes a smooth process and reduce the likelihood of an audit. In the unfortunate event of an audit, however, you can call our team of tax professionals and CPAs at IRS Audit Group to help guide you to a successful resolution. We offer full audit representation services for both IRS and state audits, as well as provide a free initial audit consultation

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The New Form 1040 for 2019

IRS 1040

What Has Changed?

For many years, taxpayers have known the IRS  federal income tax form 1040 form as a long and complicated form. For those who don’t know what is form 1040 is, or do not know how to get 1040 form,  it is an IRS form that is filled out by taxpayers to report their gross income. The IRS 1040 form used to be pages long, and used to come in different formats, including the 1040, the 1040A, and the 1040EZ. Starting 2019, the IRS is issuing a new 1040 form. Taxpayers will no longer be stuck choosing between the different versions of the previous 1040 form, because it is completely different from the 2018 form 1040 schedule a.

What To Know?

Recently, the IRS announced a change in the 1040 form instructions. As we gear up for the 2019 tax filing season that is quickly approaching, we want to focus on one big change that taxpayers will notice this year: the new 1040 form. In an effort to streamline the process for taxpayers, the IRS has created a shorter, simpler version of the 1040 form. This new form is about half the size of the current version. Taxpayers will no longer have to choose between Form 1040, Form 1040 A, or Form 1040EZ—instead, all 150 million American taxpayers will complete the new 1040 form.  Regarding the schedules, the IRS has suggested that nearly 65% of all American taxpayers will have to submit the new 1040 with only one schedule. We are not sure which schedule, it may be IRS form 1040 Schedule A. While the IRS has indicated that the new 1040 form will certainly be used for 2019, it’s still making minor changes before the opening of the filing season. For those that have a more complicated return, such as having deductions, credits, or owing additional taxes, addition Form 1040 Schedules may need to be filed. Below, we provide a guide on all of the different 1040 schedules, giving you information about how to use them.

 

Schedules

Schedule 1: Needs to be filed if you have additional income including capital gains, unemployment, gambling winnings, or any prize and award money. Also needs to be filed if you claim deductions such as student loan interest deduction, self-employment tax, or educator expenses.

Schedule 2: Needs to be filed if you owe Alternative Minimum Tax (AMT) or need to make an excess premium tax credit repayment.

Schedule 3: Needs to be filed if you can claim a nonrefundable credit such as foreign tax credit, education credits, or general business credits. Child tax credit and credit for other dependents are not included as part of nonrefundable credits here.

Schedule 4: Needs to be filed if you owe other taxes including self-employment tax, tax on IRAs or other retirement plans, and household employment taxes.

Schedule 5: Needs to be filed if you can claim a refundable credit other than American opportunity credit, additional child tax credit, and the earned income credit. Also needs to be filed if you have other payments, for example amount paid with a request for an extension to file or have excess social security tax withheld.

Schedule 6: Needs to be filed if you have a foreign address or a third party designee other than your paid preparer.

 

Printed copy of simplified Form 1040 for income tax return for 2018 with reminder for April 15, 2019 deadline

 

IRS Audit Group

What To Do?

The new income tax form 1040 is just one of the ways that the IRS is getting ready for the many new changes that are coming into effect as part of the Tax Cuts and Jobs Act. This is the biggest piece of tax legislation in the past thirty years, and as a result, it’s important to understand how they may affect you during the 2019 filing season. We can help you with all your taxpayer needs, including filling out a 1040 extension form, information on the form 1040 tax table, or any other questions about IRS or taxpayer procedures.

Contact Us

Contact us today for help with irs tax form 1040, and much more. Contact us at 1 (888) 300-6670 to get in touch with one of our friendly team members who can answer all of your questions. You can visit us at IRSAuditGroup.com or email us at info@irs-audit-group.com

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5 Ways to Make Sure Your Business is Ready for the End of the Year

The end of the year is quite a busy time for any business owner. Not only are the holidays in full swing, but additionally, there are tasks every business owner needs do to set themselves up for a good start in 2019, especially in terms of taxes and bookkeeping. In this article, we’ll highlight what we believe are some of the most important things to do in closing out the year.

  • Make sure your accounts receivable is reconciled.

We begin with a task that is absolutely essential. Take a look at your list of unpaid invoices and try to collect these bills before the end of the year. Not only will this give you a fresh start in the new year, but it will also help with cash flow.  

  • Confirm that your payroll and benefits are accurate.

As expressed by many tax experts, it’s always better (and less expensive) to correct any issues with payroll and benefits in December rather than in the new year. Something that often goes unaccounted for are taxable fringe benefits, such as sick pay or a company car, or other transportation subsidies.  

  • Disburse any bonuses before the end of the year.

Bonuses have a big impact on the profits you report. As a result, it makes a difference whether you disburse these bonuses before the end of the year versus in the new year. If you assign bonuses at the end of the year, you can deduct from the revenue for this year, meaning a reduction in the amount of tax you’ll owe when you file.

  • Meet with your tax professional.

A year-end meeting with your tax preparer is always a good idea. You can use this meeting to evaluate your current tax strategies based on your financial report. Look through your cash flow statement, balance sheet, and profit and loss statement together and identify how taxes will be influenced.

  • Use your financial statements to create goals for the coming year.

Not only is it useful to review your financial statements to evaluate the goals that had been set for this past year, but also to set new goals for the coming year. Besides setting new goals, use this time to begin planning your budget.

These five simple steps we’ve covered above can go a long way in ensuring your business is ready for the new year. It may seem like a lot of work, especially with all of the holiday chaos, but in the long run, it will make your life easier and help your business be successful. In addition to state and IRS audit representation, our team of CPAs also offers additional services such as individual income taxes, business income taxes, and employment taxes. If you have any questions, contact our friendly IRS Audit Group staff today at 1-888-300-6670 for a free consultation.

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New Tax Changes In 2018 You Should Know About

There are a few tax changes that you might want to make yourself aware of in 2018. Many of these new changes are updates from the IRS and a major tax reform that was passed by Congress. These changes have the potential to alter your situation drastically in the 2018 tax year and future years to come.

The IRS usually unveils its new changes to taxes every year. This includes any cost-of-living adjustments for retirement savings, as well as inflation changes on specific tax provisions. All of these changes, along with the bill that was recently passed by Congress, have the potential to result in major changes to the amount you owe on your taxes. Let’s take a look at some of the most prevalent ways these new changes can affect you.

Top income tax rate

If you’re an individual with an annual income of over $500,000, you’re in the new top income tax rate. The new 37 percent top rate will also apply to any married taxpayers that file jointly at $600,000 and higher.

Increased child tax credit

The existing child tax credit has been increased to $2,000 per each qualifying child, as long as they are under the age of 17 years. This figure is up from the previous amount of $1,000. For those that do not qualify for the new $2,000 credit, a $500 credit will be available.

Changes to standard deductions

As far as standard deductions go, anyone that is married and planning on filing jointly will notice an increased standard of deduction of $24,000. This is a decent leap up from the previous amount of $13,000.

There is now a $12,000 standard deduction for all single taxpayers and those that are married, but wish to file separately. This amount has increased almost double its original amount of $6,500. If you identify as the head of your household, you will see the amount increase from $9,550 to $18,000.

Limit increase for retirement savings

If you’re an employee that participates in a retirement plan, you may be able to now contribute up to $18,500 this year for your retirement plan. This amount is a $500 increase from the $18,000 limit of 2017. Some of the participating plans include: 401k, 403b and most of the 457 plans, along with the Thrift Savings Plan.

If you contribute to an individual retirement account or IRA, you’ll notice higher income ranges following the cost-of-living adjustments. For single taxpayers, the new limit becomes $63,000 to $73,000.

Deductions that have been done away with

A large majority of the deductions remain unchanged under the new tax law. However, there are a few to mention that are being removed. The following deductions are no longer available under the new 2018 tax laws.

  • Moving expenses
  • Unreimbursed employee expenses
  • Tax preparation expenses
  • Employer-subsidized parking and transportation reimbursement
  • Casualty and theft losses (except those that are attributable to a federally declared disaster)
  • Other miscellaneous deductions that were previously subject to the 2% AGI cap

It’s important to be aware of each of the changes made for the 2018 tax season, as well as any new tax laws for the future. Being up-to-date on all the latest laws and regulations will help to avoid any headaches when it comes to making sure your taxes are done properly. Each year the IRS makes changes to how our taxes are done, like adding or removing deductions and making changes to tax rates.

Changing income rages, as well as changes on corporate levels can make the ever-evolving tax laws seem like a chore to keep up with. The good thing is that for some people, these changes can be beneficial to them and their entire family. Prepare yourself for the current tax season and all upcoming seasons, so that you can avoid any costly mistakes on your taxes.

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Beware of IRS Scammers

Tax season may be over now, but that does not mean it is okay to let your guard down when it comes to your taxes and personal information. The IRS warns that scammers are still out there coming up with new schemes to scare you into giving out your personal information and sometimes even cash.

Being on the lookout for IRS Scammers

There are many different things you should be on the lookout for when it comes to protecting yourself and your personal information. Every year, scammers come out with new and evolved methods for scamming unsuspecting customers out of their hard earned money, or their valuable personal data.

According to the IRS themselves, summer is the most likely time to see an uptick in scammer activity. This is because during the summer time, many taxpayers are already expecting to hear back from the IRS regarding their tax status and other important information. This is the time that many individuals need to be aware of any suspicious emails and telephone scams. Sometimes it can be hard to tell the difference between a legitimate IRS communication and a fake one.

Types of IRS Scammers

Scammers are continuously changing their methods of scamming in order to stay under the radar of law enforcement and other safety officials. That is why it is so important to stay up-to-date on the types of scams that are currently going around. In most cases, scammers will attempt to get taxpayers to reveal personal data to them, such as their social security number, their account information, PIN numbers and passwords.

They like to attempt this by sending out false emails that are made to look like a legitimate email from the IRS. If you’re not aware of it, it is very easy to mistake the fake emails for the real deal. Other than emails, scammers can also contact you through these ways:

  • Voicemail: There have been quite a few cases recently where scammers will call an individual and leave a voicemail message on their phone stating that if they do not return their phone call, a warrant will be put out for their arrest. Sometimes these messages will even include an urgent time frame like 24 hours for you to return the call or else you will be “arrested”. The IRS has stated that they do not place phone calls leaving urgent messages. If you receive one of these voicemails it is a scam.
  • TAC Calls: TAC stands for taxpayer assistant center. This is where discerning a fake call from a legitimate one can become tricky. In order for the scammers to appear to be a legitimate IRS caller, they are able to fake specific caller ID numbers which include numbers form a taxpayer assistant center. Even when you attempt to question the caller to find out if it is a scam, they are likely to tell you to check the local TAC number with the one on the IRS.gov website. After this they are likely to call you back again and demand a payment from you. In most cases, they demand the payment to be by debit card. While this might seem like a scam that would be hard to recognize, just keep in mind that the actual TAC offices will never make a call demanding payments from you. TAC offices only offer in-person help for taxpayers.
  • Fake form scams: Sometimes a scammer may even go as far as sending fake forms to your home address. Scammers can send a letter to your home with a fake form called the W-8BEN. It claims that the taxpayer may be exempt from withholding and from reporting income tax. This fake form may also refer to the form W9095, which does not exist. If you receive any of these types of forms or letters they are a scam, do not reply to them or send any information back.

As time goes on, scammers are becoming more and more intricate with their schemes and plots to steal taxpayers’ money and personal information. It is important to educate yourself on the type of scams that are out there so that you decrease the chances of falling victim to one of these scams yourself. Spread the word and educate your family as well so that as few people as possible are fooled by IRS scammers.

 

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Why They Do It

Money

Money rules the world. Money is power. Money is what motivates most people to do some of the despicable things that they do, and when it comes to IRS scams, this is the most obvious, and most usual reason it happens. IRS scammers are all about turning inconvenience into cash and ensuring their own illicit monetary gain. Leaving recordings claiming to be a voicemail from the IRS, and sending out false emails claiming to be the IRS are just a few ways scammers will always try to grab ahold of your money, as money is the primary reason IRS scams happen.

Identity Theft

A killer on the rise, identity theft is a growing threat to society and is another huge reason to be aware of IRS Scammers. By handing over your information to an IRS Scammer, you can potentially give them the information they need to take away your legal identity. Giving them things like your bank information, name, address, among other things, you can unwittingly set yourself up to be a victim of identity theft.

 

Reporting IRS Scams

Why It’s Important

Most of this can be avoided if one, people are made aware of IRS scammers, and two, people report IRS scams when they happen. Reporting IRS scammers numbers that call asking for payment or personal information is essential to the process of eliminating scammers altogether. In order to improve telephone traffic by removing possible scammers from calling, knowing who to remove is just where we have to start. So, be sure to report IRS scammers if ever the dreaded occasion arises.

Who to Report To

Reporting is great and something to be highly encouraged, but you also must know the proper places to report to. Just as there are people who behave similar to the IRS, there are places on the internet which may seem a similar place to report such activity. Knowing how to differ between the right and wrong places to report is another piece in fixing these scams. The right place to report to is phishing@irs.gov if ever a call has been made to you by a scammer, and in the case of a unfortunate monetary loss due to a scam, be sure to report to the Treasury Inspector General Administration or the TIGTA.

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Common Reasons the IRS Will Audit You

Hearing the word “audit” strikes fear into the hearts of even the bravest of men and women. There are so many myths and negative views when it comes to an IRS audit. No one wants to be audited by the IRS. Avoid making these seven mistakes and you should okay.

Not Reporting All Income

To avoid this, make sure all income is accounted for and keep track of all business earnings. You don’t want to leave anything out. When filing taxes, mistakes can cost you a lot and ignorance does not account for negligence. So, be sure to account for all the work you’ve done and keep record of all the profit or income you’ve pulled.

Excessive Business Expenses

Your personal life cannot interfere with how business or work is carried out. Make sure to keep all business expenses strictly business and maintain a work-life balance which is healthy to ensure the IRS doesn’t come poking around.

Reporting a Home Office

Otherwise, you create another reason for the IRS to audit you as writing off a place as a work area doesn’t make it so. Just because your new house comes with an office doesn’t mean it’s in need of reporting, unless the use is truly exclusive to business.

Using the Wrong Filing Status

Keep things updated, always. Don’t leave out any information, but beware that the IRS may tax audit you if you’re not careful in the ways you go about changing your filing status.

Fudging Your Math and Numbers

Overall, being too aloof as to how numbers are recorded and all-around unobservant in terms of value is what causes the IRS to audit you.

Filing Personal Expenses as Business Expenses

To do so creates other unnecessary problems that can be avoided with a healthy separation of business and personal life.

Claiming Too Many Charitable Donations

Among the primary reasons the IRS will audit you, this may seem the most innocent, but it does not resolve that it is still a reason someone may become victim to the IRS audit process. To ensure financial health and tax reliability and sustainability, be sure to be diligent in how you file taxes each and every year.

Internatl Revenue Service IRS Finance Taxation Government Concept

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California Passes SB274 in Response to BBA’s New Partnership Audit Rules

Changes Brought by the BBA’s New Partnership Audit Regime

In November of 2015, the Bipartisan Budget Act (BBA) was signed into federal law, bringing significant changes to the rules surrounding partnership audits and adjustments. The BBA replaced partnership audit laws that were in place underneath the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). One significant change that came as a result included administering tax effects resulting from a partnership audit on a partnership level instead of individual level. Furthermore, under the new rules, tax deficiencies were to be assessed in the adjustment year (when the audit is resolved) instead of the reviewed year which the tax deficiency occurred.  The third major change was requiring partnerships to select a “Partnership Representative” who possesses all authority on behalf of the partnership during a partnership tax audit. These changes all went into effect as of January 1st, 2018.

California’s Response: SB274

When federal tax laws are changed, they typically also impact state tax laws, and this certainly has been the case with the new BBA partnership audit laws. On September 23rd of this year, California’s Governor, Jerry Brown, approved Senate Bill No. 274 (SB274), which requires partnerships to report every change and alternation that came as a result of an IRS partnership audit to the Franchise Tax Board within 6 months of the final determination. As an urgency statute, this bill was declared to take immediate effect. California already required individual taxpayers to notify the Franchise Tax Board if an audit resulted in an adjustment to their federal tax return.

California joins Arizona, Georgia, and Hawaii, which had each already passed legislation that addressed partnerships audits at the state level in response to changes at the federal level. Experts believe that as the new BBA partnership rules take effect for the 2018 tax year and beyond, more states are likely to make legislative changes which are in line with the federal rules.

Dealing with a Partnership Audit Under the New Laws

These new partnership audit rules, both at the federal and state level, have certainly caused a fair share of confusion among those who file partnership returns. Partnership audits are already tricky and difficult to navigate, and while these changes were designed to make the process simpler, no one knows yet exactly how they will play out in reality.

At IRS Audit Group, our team specializes in achieving the best possible results, no matter the scope of the problem. Whether it’s a federal partnership audit or a state partnership audit, we can ensure that our tax attorneys will get the job done right. We’ll guide you through each step of the way, resolving your tax issues efficiently and effectively. Facing the IRS on your own can be intimidating and extremely stressful; instead, let our experienced attorneys represent you throughout the entire IRS audit process. Call us today at 1-888-300-6670 for a free consultation where we will answer your questions and tell you how we can help you resolve all of your tax issues.

What is BBA?

Overview

The Bipartisan Budget Act is a new rule, created in 2015 and made effective as of January 1, 2018, stands to treat partners filing taxes which are due as partnerships. This means that any audited partners will be audited solely as a partnership. This rule, overall, makes it easier for the IRS to audit partnerships and can sometimes make it a bit more confusing to file taxes as partnership than before.

How it Affects the IRS Audit Process

These new partnership audit rules stand to make the IRS audit process run smoother by treating any audited partners as a complete partnership. However, though it may seem like a simple solution, these centralized partnership audit rules can tend to make things more convoluted than before. This is why some states are already coming up with laws in response to this new act, California being one of them.

 

Mature male owner of business corporation giving tasks to employees explaining strategy planning to improve income from sales and services, experienced team leaders having formal meeting in office

 

What Does SB274 Change?

Overall Changes

Since BBA has made it apparently easier to audit partnerships, SB274 aims to assist with protecting partnerships by having them urgently file any tax changes due to audits within six months of the final determination. This change is all come of the new partnership audit rules recently put into effect by the federal government as of 2018.

How it Affects the IRS Audit Process

In theory, by having partnerships file changes due to audits, it should make the IRS tax audit process run in a way which is less confusing and laboring for the individual. No matter what, though, the new BBA partnership audit rules is something to adapt to, and we at the IRS Audit Group can assist with proper audit representation at times of tax distress.

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Tax Audit Newport Beach

The Process of Getting Audited by the IRS

An IRS tax audit is something that absolutely no one wants to deal with. Not only can audits be stressful and time-consuming, but in addition, you may have to pay additional taxes and potentially even face penalties. In this article, we’ll cover the IRS audit process, giving you all the information you need to know. Why does the IRS audit people? How does the IRS notify you of an audit? What information does the IRS want during an audit? How long does the process take? We’ll answer these questions and more below.

Reasons for an IRS Audit

There are a few different reasons why the IRS selects people for audits. One way is through computer software that uses a statistical formula to compare your tax return with the averages of similar tax returns. Making math mistakes, not reporting all income, or claiming deductions that aren’t deserved are all things that can lead to an audit. Another way the IRS selects for audits is by someone being associated (through transactions) with another taxpayers who has been selected for an audit. If your tax return is selected, an IRS auditor reviews your tax documents before deciding to accept it or continue on with the audit process.

Receiving an IRS Tax Notice

The IRS will never call or email you about to notify you that you’ve been selected for an audit. Instead, you’ll receive an IRS tax notice by mail which includes contact information as well as instructions. The IRS does audits by both mail (mail audit), through in-person interviews which could take place at an IRS office (office audit), or at a taxpayer’s place of business (field audit). These three are the most common types of audits. It is possible to request an in-person audit if the documents that the IRS requests are too many to mail.

Documents that the IRS Commonly Requests for an Audit

There are a variety of different tax documents that the IRS can request during an audit. These include bills, receipts, canceled checks, legal papers, loan agreements, theft or loss documents, and employment documents. This is why ensuring that your books are up to date and kept meticulously are extremely important. In the case that an audit was to occur, all the documents should be on hand and ready to go.

The IRS Statute of Limitations

The IRS can audit returns that were filed in the last three years, although in situations where more substantial errors have been identified, they can go back additional years. Most commonly, however, audits are conducted for returns filed in the last two years.

The Length of Audits

Generally speaking, most audits take less than a year to complete. Mail audits are typically the fastest (three to six months) while field audits can last up to a year. The length of an audit is based upon a multitude of different factors which include the complexity of the issues, the type of audit, the type of information that has been requested, as well as your response to the audit report.

Conclusion of an Audit

There are three ways an audit can end. In the first scenario, your items are reviewed and there are no resulting changes. The second way an audit can end is if the IRS proposes changes, and you accept those changes. If you owe money, there are various payment options that are available. Lastly, the third way is if the IRS proposes changes, but you don’t agree with those changes. If you don’t agree, you can schedule a conference with an IRS manager, as well as file an appeal if enough time is left on the statute of limitations.

In this article, we’ve covered some of the most common questions people have about IRS audits. There’s no doubt that there’s a lot more to audits then what we’ve outlined here, some of which can become extremely confusing. We always suggest consulting with an experienced tax team that you can rely on to guide you through the audit process and represent you during an audit to ensure you get the best possible outcome. At IRS Audit Group, we have over 15 years of experience in dealing with the IRS specifically dealing with IRS and state audits. Call us today at 1-888-300-6670 for a free consultation and more information about how we could help you.

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The BOE Sales and Use Tax and its Affect on Income Tax Returns

As required by the California Department of Tax and Fee Administration (CDFTA), all retailers engaged in business in the state must pay the state’s sales tax. This applies to all sales of goods and merchandise in the state, as well as to all purchases shipped to a consumer in California—regardless if the sale is made by the Internet, telephone, or mail order. The sales and use tax rate is dependent on the specific location in California that a retail does business in and includes a state, local, and district tax.

What is a BOE Sales and Use Tax Audit?

The revenue from sales tax that California collects funds the state’s General Fund, which is used for schools, parks, road, and other public programs. As a result, the California State Board of Equalization, which administers and oversees the tax code, vigorously seeks enforcement and compliance. What does this mean for business owners? The Board of Equalization (BOE) regularly conducts audits to check that businesses are accurately collecting, recording, and reporting the sales tax. Audits are especially common for businesses in which cash transactions make up great deal of the total sales. Audits are also more likely to occur if you’ve had late payments or filings, or if you’ve had tax issues in the past.

This is one of the primary reasons why it’s extremely critical to make sure your tax records and bookkeeping are always up to date and done meticulously. In this case that an audit was to happen, all the records would be ready and accurate. If the BOE wants to audit your business and your books don’t add up, this can create a host of problems. To begin, a sales tax liability will be assessed against the business owner, who has to pay the amount owed within 30 days. Additionally, adjustments to the sales and use tax returns can also impact your income tax returns.

How Can a BOE Audit Impact Income Tax Returns?

When the Board of Equalization conducts an audit that results in adjustments of total sales, it will provide the California Tax Franchise Board with a copy of the audit report. It’s typically the case that an adjustment to the sales and use tax return will also require an adjustment to the income tax return. This is because has an impact on various tax items, most commonly total sales and business expenses.

What to do if an Audit Results in an Adjusted Sales and Use Tax Return?

While an adjustment to a sales and use tax return can certainly be stressful, there are certain steps you can should take to prevent the problem from going any further. Make sure to review the audit report and compare it with your income tax return in order determine whether or not an adjustment needed is needed on your income tax return. If an adjustment is required, an amended income tax return must be filed. If these steps are avoided, the State Franchise Tax Board will determine if an adjustment is necessary based on the report and in in the case that it is, make the proper adjustments which you will be liable for.

If your business is currently being audited by the BOE, or if an audit has already been conducted and deemed that adjustments are necessary, we always suggest using a tax attorney who will oversee every step of the process. At IRS Audit Group, our experienced tax team make it a priority to deal with each and every case with special care and attention. Call us at 1-888-300-6670 today for a free consultation regarding your state or IRS tax audit.

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IRS Audit Group

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