As the Tax season for 2021 is nearing, it is good to have a basic understanding of the recent adjustments in tax structure, exemptions, and credits.  Such info will help taxpayers to plan and file tax returns in time.  Every year, the Internal Revenue Service (IRS) updates tax rates, rebates and thresholds that are adjusted with the annual inflation. On Nov. 10, 2021, the IRS announced inflation adjustments for 2022 affecting standard deductions, tax brackets, and more.

Thus, the Tax Filing Year 2022 got many updates that are listed in detail by IRS in this document. It is important to discuss a few such changes that need spotlight among every taxpayers which are listed below.

1. Child Credit on Monthly Basis

Child Tax Credit provides financial benefits to those with qualifying kids. For those Tax Years before 2021, the IRS allowed claim up to $2,000 per child under the age of 17 in Tax Filing.  However, during the Tax Year 2021, the following changes were done.

• Child tax credit amount has increased up to $3,600 per child under 6
• Child tax credit amount has increased up to $3,000 per child ages 6 to 17
• Child tax credit is now fully refundable.
• Child tax credit has been converted to monthly payment

As the COVID-19 has negatively impacted the country’s economy and the taxpayers, the IRS provided 50% of the child tax credit as advance monthly payments during the period July to December 2021. Tax filers may need to repay if they received more than the eligible pay.  Similarly, those who received lesser credit can file and claim back. Thus, the expanded child tax credit payments could impact many families’ tax refunds. For more specific details, please be guided by the IRS government portal

https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

2. Recovery Rebate Tax Credit

Recovery Rebate Tax Credit or Stimulus Payment is another benefit in case you haven’t received the third economic impact payment while preparing Tax Filing. Those who lost jobs or whose income drastically decreased in 2021 can now claim the Recovery Rebate Tax Credit. Here are the eligibility criteria to receive the economic impact payment.

• You’re not dependent of a taxpayer
• Your adjusted gross income (AGI) can’t exceed:
• $150,000 for married filing jointly
• $112,500 for heads of household
• $75,000 for single filers

One must file 2021 Tax Return to receive the Recovery Rebate Tax Credit even if not done Tax Filing or any tax return in the past. You can use any one of IRS’ Free File Providers from the list given.

Note: You must have AGI of less than $73,000 to use the IRS’ free file program.

Learn more from IRS official website below

https://www.irs.gov/coronavirus/economic-impact-payment-information-center

3. Claim Charitable Donations

For the Tax Year 2021 Tax filing, the claims on Charitable Donations are changed with the increase in tax deductions. Taxpayers both individuals who itemized and those who do not itemize can avail such benefits of these deductions while filing the return.  Now, the tax filers can deduct up to $300 for cash donations to qualifying charities (up to $600 combined for married filers) whether you itemize or take the standard deduction for 2021.

Those who claim charitable contributions as itemized deductions can claim cash contributions made to qualifying organizations up to 100% of their adjusted gross income (AGI) for the 2021 tax year only. Such deductions used to be limited to 60% of the taxpayer’s AGI. More specific info can be found at https://www.irs.gov/about-irs/the-irs-encourages-taxpayers-to-consider-charitable-contributions

IRS Audit Group continues to monitor the tax provision updates every year and highlights important changes that benefit the taxpayers in Tax Filing. We are certified tax lawyers having immense experience in state and federal tax laws. Get a free consultation with us to understand your tax problems and help you deal with IRS on this upcoming Tax season 2022. Contact us (888) 300-6670 (or) [email protected]

RMD (Required Minimum Distributions) is an important part in everyone’s retirement income planning process. As we are approaching the end of the year it is important to remind about the deadlines associated with RMD withdrawals. In order to avoid tax penalties from IRS, withdraw your RMD’s on time from certain retirement accounts. Yes, tax audit can be done by the IRS for the non-withdrawal IRA accounts because withdrawals will be subject to federal income tax. The deadline to withdraw the RMD amount is December-31 2019.

To enjoy the golden years after retirement, the IRS is providing options to invest in a variety of tax-advantaged retirement accounts. The types Of Individual Retirement Accounts (IRA) can be as follows:

Traditional IRA

This type of individual retirement account will allow your earnings grow tax deferred. There are some advantages and limits in traditional IRA plan. Individuals will be able to deduct the entire amount of the IRA contribution if not covered by retirement plan by the employers. There is no income limit for this plan. You can invest in traditional IRA plan, no matter how much you earn. But one cannot make contribution after the age of 70.5 years. You should begin to take the RMD amount from your account by April 1 of the calendar year following the year you reach the age of 70.5. Failures to withdraw, the IRS will audit your account and can impose a whopping penalty of 50% from the minimum amount to be withdrawn.

Simplified Employee Pension (SEP) IRA

This is a plan for those who are self-employed, own a business, employs others or earn freelance income. Generally, employers will be contributors of SEP IRA but employees also be able to make traditional contribution to SEP IRA. Employees can participate only if they are 21 or older and should earn at least $600 in the tax year, and worked with the employer in at least 3 of the past 5 years.

Simple IRA

Simple IRA is a retirement plan offered by small businesses up to 100 employees. Distribution can be taken within 2 years of opening the plan. In simple IRA, the employer can match the contribution of employees up to 3% of salary. When the employee not chooses to participate in the plan, then the employer can make the contribution of a flat 2%. Compared to other retirement plans, simple IRA plan offers lower startup and annual costs.

You can estimate the current and future year’s RMD amount with a simple calculation. It is determined by the prior year’s December 31^st IRA account balance. Then check the distribution period based on your age. The account balance should be divided by the distribution factor you found based on your age. Online RMD calculators also available to calculate the amount you can withdraw from your RMD account.

IRS Audit Group’s resolves your tax issues faced during the IRS Audit. Through the RMD’s IRS will collect the tax from your income and investment gains. If you have any questions regarding RMD’s, the different IRA plans, to know how the RMD amount is calculated and to avoid the tax penalties for your RMD accounts by the IRS we can help you to resolve with our efficient tax experts. We also offer Tax Audit Representation Services for all your tax dispute cases, Contact us for free consultation

[email protected]/1-888-300-6670

Tax season is over and now the waiting for tax refund.  Tax refund is issued when you pay more to the state government or federal government than the amount you actually owed.  Taxpayers those who over paid their taxes can expect to get tax refund.  Tax refund is not free money; it’s already paid by the taxpayers.  The IRS says that most of the tax refunds are delivered within 21 days of filing.  Tax filers can be able to track their status of the refund to know when their refund will arrive by using “Where’s My Refund?” tool at IRS.gov or by using the IRS2Go app.

If it has been more than 21 days or more than six weeks since you have filed for the tax refund, then you can contact IRS.  In certain times, IRS may hold onto your refund if you have certain outstanding debts.  Paying those outstanding debts on time will ensure that you get your entire refund on time.  According to IRS, if you use e-file or direct deposit you will get your refund faster.

What factors can delay your tax refunds?

Your tax refund may get delay for any of the following reasons.

• The numerical errors and mistakes in your tax return can slow down the process of tax refund. This will add days or weeks to the refund processing time by the IRS
• IRS wouldn’t be able to process your tax return, if you miss to enter any information. This incomplete tax return also will make you to wait for a long time for the tax refund
• When someone uses your personal information to file a fraudulent tax return and claim refund in your name. In the case of tax fraud you are encouraged to contact the IRS to report the fraud
• If you transposed a digit in your account number then the refund will be sent to the wrong account. In this cases IRS can’t compel the bank to turn over the money to you
• If IRS thinks your tax deductions and credits are manipulated or inaccurate, refund will be hold and IRS can initiate a tax audit. You may require a professional or tax attorney to represent you in the audit.

Deadline to claim the Tax Refund

To claim any refund from the IRS you will get three years of time from the date of original deadline of your tax return.  Your refund will expire and goes away forever if you wait longer than the deadline because the statute limitations for refund claiming will be closed.  When a refund expires, the federal government will keep the money and consider it as an ‘excess collection’.  That excess money can’t be sent to the taxpayer but it can be used as a payment toward a future tax year.

It is important to research your IRS account when the IRS takes or holds your refund.  This will help you to get the reasons of the issue and clear up any confusion with the IRS.

If you are facing issues with your tax refund due to IRS audit, it is important to contact a tax lawyer to understand your rights and seek solution accordingly.  IRS Audit Group tax professionals can help you by dealing directly with the IRS to solve the tax refund issues.  Our tax professionals will review your account transcripts to complete the tax history.  Contact us 1-888-300-6670 for free consultation or email us at [email protected].

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.

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.

You just couldn’t make it this year, and you have your respective reasons. Don’t panic, but act accordingly. The federal government provides services if you missed April 15, 2019, this year for your tax files. Here is an analysis on the U.S. structure for when missing the deadline for taxes.

If you did not request an extension to file your taxes, the tax deadline is April 15, 2019 in California. States such as Massachusetts and Maine have until April 17, 2019 — but either way, those dates have passed. If you gasped at that date, then you’re probably here wondering… what’s next?

If you requested an extension, your deadline is on October 15, 2019 to file taxes. If you did not request for an extension, neither did you file for taxes before April 15, 2019, you might consider learning and exploring a couple of options.

For beginners, you want to avoid the accruement of penalties and fees. Therefore, it is imperative to file your taxes, even if the due date has passed. The sooner you tax your files, the quicker you avoid any problematic scenarios. If you are unsure of your situation or believe that there is an outstanding case in your hands, speak with a specialist to further elaborate on your situation.

Better Late Than Never…

The good ol’ saying, “better late than never” applies to your taxes. As in the aforementioned, you really want to minimize your penalties and fees when working with the federal government. File your taxes, even if they’re past due. If you didn’t file for an extension but are owed a refund, there are no penalties for missing the deadline. However, you should still file as quick as possible, for when a return fails to be filed, generally most are allowed a three-year grace period to claim their refund before that amount is seized by the U.S. Treasury.

Though if you didn’t file for an extension and owe money, there is a possibility of being charged with the failure-to-file penalty. This may cost 5% of the total tax bill each month it goes unpaid after the deadline, up to a maximum of 2% of what you. You could be subject to the failure-to-file penalty, which could cost 5-25% of your total tax bill each month, depending how many times the penalties and fees are ignored. Furthermore unpaid bills consequently end in poor credit score or criminal prosecution under federal law. Thusly, we suggest filing as quick as possible, even if the total amount cannot be paid.

More Time to File

In some rare scenarios, the IRS provides extra time to pay debts and file taxes beyond October 15, 2019. Predominantly, the government provides this service for those in the military, military members in combat or conflict areas, and those living abroad.

If these unique cases do not apply to you and/or you have any questions, comments, or concerns regarding this subject, reach out to an expert for an assessment of your tax situation. You save substantial amounts of money by prioritizing your tax issues and ultimately avoiding penalties.

Check Cashing:

It is a common misconception that cashing a check is a way to hide income from the IRS. Nothing can be more false than this. Banking facilities and other check cashing business keep track of all the checks that are cashed with them. The IRS has legal authority to get this information from the banks and the check cashing facilities. If you cash a check, and you don’t report it to the Internal Revenue Service, it is within their legal boundaries to open an audit against you. The IRS opens an audit because they get suspicious as to how many checks you cashed, and how much income you tried to hide. Make sure to report all your income to the IRS, regardless of if you cashed it or just deposited. This way, you can avoid unnecessary headaches and stress.

Contact Us:

If you get Audited by the Internal Revenue Service because you cashed some checks, give our IRS lawyers a call. As a taxpayer, you deserve proper representation. We understand how hard it is to navigate through all the issues that may arise in regards to taxes, which is why we are here to help you. Regardless of the specifics, we will be there for you anytime you have an issue relating to your taxes. You can read more about us by visiting our website at irsauditgroup.com. Our office can be reached by email at [email protected]. You can call one of the representatives at our office at 1-888-300-6670. You can even drop by one of our beautiful offices. Our Beverly Hills office is located at 468 N Camden Dr, Beverly Hills, CA 90210. Our Newport Beach office is located at 2901 West Coast Hwy, Suite 200, Newport Beach, CA 92663. Contact us today to get the representation you deserve!

Who We Are

We are a team of Tax Professionals, CPA’s, Enrolled Agents and Tax Attorneys who specialize exclusively in Tax Audit Representation with over 15 years of experience. We are not a law firm and are located in Beverly Hills, California. While our services are offered 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 our local IRS office, Located in Los Angeles, California.

IRS & State Audit Representation

Receiving a letter from the IRS or the state is stressful. Most people don’t know what to do or whom to call. Typically, the IRS agent would like to meet with you, has issued a request for your documents, while being sure they are received promptly. Contact a tax lawyer from IRS Audit Group for assistance today!

You Have The Right to Retain Representation

Our services are nationwide, and we are authorized to work with an IRS office in the country. Since the IRS is a Federal Agency, if needed, we can request that your case is transferred to our IRS office in Los Angeles, CA near our headquarters. We may represent you with any state audits.

Cost Effective For You

IRS Audit Group only charges a flat fee for our services which is determined after we have reviewed your tax information and IRS letters.

Our professional team of Tax Professionals, CPAs, and Enrolled Agents are experts and have over 15 years of experience in audit representation. We will do what it takes to get the job efficiently and effectively.

Call IRS Audit Group to Review Your Tax Information

There is a conflict of interest if your tax preparer/CPA represents you in your tax audit. While he or she wants to help you, they have their reputations and business to protect. It’s rare for him or her to admit they gave you advice that may have resulted in your return being audited.

Most tax professionals charge by the hour. The amount of time needed to handle your case can vary. An initial meeting with the IRS, for example, can last a day and your fees could reach amounts you’ve never expected. A similar fee situation may even arise while using a CPA.

Remember that tax laws are a specialized field and not all attorneys and CPAs have the background to navigate the complexities of a tax audit.

Business Taxes:

Business Filing Due Date – March 15

Filing taxes is an important part of running a business! The filing due date for businesses differs from the dates for individuals!  The due date to file taxes for an S Corporation, LLC or a Partnership is 03-15. If you need a tax extension, the date for tax extensions is also on March 15th. IRS Audit Group will help you file your business taxes, and even your individual taxes. We can explain the tax filing processes to taxpayers and businesses owners. With a quick phone call, you can understand how filing taxes can affect your business and the importance of filing business taxes on time.  

Tips

Income Tax:

All businesses must file a yearly income tax return. Federal income tax is pay as you go. If an employee does not have money deducted from each paycheck, they may have an estimated tax.

Estimated Tax:

If a business is expected to owe a tax of $1,000 ($500 for corporations) or more when they file their return, they usually might have to make estimated tax payments. We can help you figure out what your estimated taxes are.

Self Employment Tax:

Self Employment tax is generally a social security or medicare tax for individuals who work for themselves. If your net earnings were $400 or more, you must pay self employment taxes.

Employment Tax:

If you have employees, there are certain tax related documents that you must file with the IRS.

IRS Audit Group

Why Choose Us:

IRS Audit Group was formed with one goal in mind – to be a one stop shop for all tax needs. We understand that many tax issues can arise for taxpayers, especially new ones! Many issues can arise with taxes, including filing taxes, getting extensions, and even help you with audit or any tax liability We are a team of Tax Professionals, CPA’s, Enrolled Agents and Tax Attorneys who can help you with any tax issue that you have. We understand how complicated it can be to get tax help, so we make the process as simple as possible. We explain every step of the processes with our clients, and we make sure to keep them updated as the process moves alone. We assure our clients that they can reach out to us at any time to ask questions. We make complicated processes look like a breeze.

Contact Us:

As a taxpayer, you deserve proper representation. We understand how hard it is to navigate through all the issues that may arise in regards to taxes, which is why we are here to help you. IRS Audit Group will help you file your business taxes on time! Regardless of the specifics, we will be there for you anytime you have an issue relating to your taxes. You can read more about us by visiting our website at irsauditgroup.com. Our office can be reached by email at [email protected]. You can call one of the representatives at our office at 1-888-300-6670. You can even drop by one of our beautiful offices. Our Beverly Hills office is located at 468 N Camden Dr, Beverly Hills, CA 90210. Our Newport Beach office is located at 2901 West Coast Hwy, Suite 200, Newport Beach, CA 92663. Contact us today to get the representation you deserve!

IRS Audit Group:

Why Choose Us:

IRS Audit Group was formed with one goal in mind – to be a one stop shop for all tax needs. We understand that many tax issues can arise for taxpayers, especially new ones! Many issues can arise with taxes, including bookkeeping, filing taxes, getting extensions, and even getting in trouble with the Internal Revenue Service.

We are a team of Tax Professionals, CPA’s, Enrolled Agents and Tax Attorneys who can help you with any tax issue that you have. We understand how complicated it can be to get tax help, so we make the process as simple as possible. We explain every step of the processes with our clients, and we make sure to keep them updated as the process moves alone. We assure our clients that they can reach out to us at any time to ask questions. We make complicated processes look like a breeze

What We Do:

Tax Audit Representation

The IRS may audit anybody at anytime they please. Going through an audit without a professional is a risky process. The IRS is trying to take money from people – remember that. If the IRS realizes that a taxpayer is going through the audit process without proper representation, they will definitely take advantage of the taxpayer. The team at IRS Audit Group can represent audited taxpayers and walk them through every step of the process.

State Audit Representation

The IRS is not the only agency that can audit a taxpayer. States can also audit taxpayers for their share of taxes. Agencies such as the California State Tax Audit and the Board of Equalization can also inquire about the taxes you filed. Like the IRS, state tax agencies can also take advantage of unrepresented taxpayers. Trust IRS Audit Group to give you the taxpayer representation that you deserve against the state!

Other Services

Other than Audit Representation services, IRS Audit Group can provide taxpayers with a bevy of tax related services. These services include –
• 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

Contact Us:

As a taxpayer, you deserve proper representation. We understand how hard it is to navigate through all the issues that may arise in regards to taxes, which is why we are here to help you. Regardless of the specifics, we will be there for you anytime you have an issue relating to your taxes. You can read more about us by visiting our website at irsauditgroup.com. Our office can be reached by email at [email protected]. You can call one of the representatives at our office at 1-888-300-6670. You can even drop by one of our beautiful offices. Our Beverly Hills office is located at 468 N Camden Dr, Beverly Hills, CA 90210. Our Newport Beach office is located at 2901 West Coast Hwy, Suite 200, Newport Beach, CA 92663. Contact us today to get the representation you deserve!