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Find out Overpayment and Underpayment Interest Rates of Taxes

Overpayment and Underpayment Interest Rates Remain the Same for Second Quarter Tax Season 2023 – Find Out How Much You Will Get or Pay?

Internal Revenue Service announced that the interest rates will remain the same for the calendar quarter beginning April 1, 2023.  The rate for overpayment and underpayment for individuals will be 7% annually, compounded daily.

What is Overpayment?

An overpayment occurs when a taxpayer pays more than the amount of tax owed. Taxpayers may overpay due to various reasons such as errors in calculating taxes, administrative errors, delayed terminations, incomplete job records, incorrectly completed work schedules or default hours, duplicate transactions, irregularly processed unpaid leaves of absence, changes in percent time, or errors in time reporting.

The overpayment interest rate for the second quarter of tax season 2023 is 7% for individuals and 6% for corporations. Also, the portion of the amount exceeding $10,000 will get 4.5% for the corporations. This interest rate was the same as in the first quarter of 2023. Previously the interest rate in the fourth quarter of 2022 for overpayments was 6% per year. It increased by 1% for both individuals and corporations in the first quarter of 2023.

What is Underpayment? 

Underpayment occurs when a taxpayer doesn’t pay enough taxes during a year, either through withholding or estimated taxes. IRS charges underpayment when taxpayers don’t pay their taxes, penalties, and additions to tax or interest by the deadline. Even if the taxpayer requests an extension, the interest in underpayment still applies.

The current interest rate for underpayment beginning April 2023 is 7% (taxes owed but not fully paid) and 9% for large corporate underpayments. The interest rate has been increased by 1% for underpayments from the first quarter of 2023. Previously the interest rate in the fourth quarter of 2022 for underpayments was 6% per year and 8% for large corporate underpayments.

How to Dispute?

If there is any dispute regarding the overpayment, taxpayers can request a refund from IRS. If a taxpayer believes the IRS assessment is incorrect, he can provide additional documents or evidence to support the claim. The IRS reduces the amount of interest owed by taxpayers only if the interest is applied because of any unreasonable error or delay by an IRS officer. For dispute interest due to unreasonable error or IRS delay, the taxpayer can submit a Claim for Refund and Request for Abatement form or send a signed letter requesting to reduce or adjust the overcharged interest.  If the taxpayer feels that IRS has underpaid the interest or credits that they are eligible for, they can request an Informal Conference and Appeals Review. The dispute will be reviewed by the IRS Examination or Collection office that made your tax assessment. If they cannot resolve it, the appeal will be considered for an IRS audit.

Taxpayers can represent themselves on the appeal or hire a tax professional. The tax professional must be eligible as:

  • An attorney
  • A certified public accountant, or
  • An enrolled agent authorized to practice before the IRS.

Interest rates for underpayments and overpayments vary and may change quarterly. The interest rate charged for earlier quarters or years is unaffected by the changes. Therefore taxpayers should make sure to pay taxes on time to avoid interest charges and those who are unable to pay in full should work with IRS to set up a payment plan.

IRS Audit Group can be at your service in representing your case for federal or state tax audit. We are a tax audit representation company in Los Angeles, California. We serve across the country with all the states as IRS is a federal agency and we could request IRS to transfer your case to California. Contact us for a free consultation to understand your case.

Toll-Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

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Hire a Tax Professional or Do-It-Yourself

Hire a Tax Professional or Do-It-Yourself – Find Out What is Best for You this Tax Season 2023?

Tax Season 2023 started and one of the important questions that come up during tax season is if you opt to prepare your tax statement or hire a tax professional. It really depends on several factors including financial situation, tax knowledge, time, patience, and effort needed to prepare a tax return. Both of these two options have their own pros and cons, the choice ultimately depends on the personal comfort level with taxes of an individual.

When To File by Yourself?

Preparing your own taxes can be done using tax software or through the IRS website. It is a good option to save a few bucks, but it is not always the best choice.  Here are a set of situations where you can do your own tax filing are:

  • The tax situation is simple.
  • Financial limitation to save money.
  • Good understanding of tax laws and tax preparation process
  • Comfortable using tax software.
  • Have patience and time to deal with tax preparation.

Disadvantages of Filing Your Own Taxes

There are potential disadvantages while filing your own taxes. Tax filing is more time-consuming especially when there is trouble understanding tax laws. If you have multiple income sources, then it adds more complexity due to numerous tax laws. Using online tax software speeds up the process but it can be difficult to get help if any question arises. Filing your own tax increases the risk of errors which lead to penalties, interest, or even an IRS audit.

Why Hire a Tax Professional?

Hiring a professional tax preparer can be a wise choice for individuals as well as for businesses. Tax Professionals have the knowledge and expertise to minimize the complex tax code and they ensure maximum tax savings and thus minimize the risk of the tax audit. Hiring a professional tax preparer may be necessary for a few scenarios as follows/

  • Don’t have time and patience to deal with tax preparations!
  • Multiple income sources
  • Owning a business or rental property and having a complicated situation.
  • Planning to itemize deductions.
  • Experienced major life events.
  • Have foreign accounts and investments or active stock traders.

Disadvantages of Hiring a Professional

The only crucial disadvantage of choosing a tax professional can be difficulty in finding a trustworthy and experienced tax preparer. Not all tax preparers are equal, some may not have expertise in handling complex tax situations. There are many scammers who pose as legitimate tax preparers.  Hence, it is important to do proper research about potential tax preparers by reviewing their credentials, client testimonials, etc.

To do filing by your own effort or hire a professional depends on personal circumstances and level of comfort with tax laws and the tax preparation process. Doing your own taxes is the finest method to save money if you are confident in your capacity to comprehend the tax rules. If not, it’s likely time to spend the money and employ a tax professional. In the end, you have to balance the worth of your time and money versus your mental health.

IRS Audit Group is a tax audit representation company in Los Angeles, California. We offer a free initial consultation to assist you to comprehend your tax concerns completely and effectively, regardless of whether they are related to California state income taxes or taxes from another jurisdiction. If you need assistance or counseling with tax issues in California or another state, please contact the IRS Audit Group to learn more about our services.

Toll-Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

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Know the Right Tax Professional

Why It Is Important to Choose a Tax Professional? Know Qualifications and the Process of Selecting the Right Tax Professional

Who are Tax Professionals?

Tax professionals are experts who offer tax-related services to individuals, businesses, and organizations. They are knowledgeable and trained in tax laws, rules, and procedures. They can be tax advisors, tax lawyers, enrolled agents, certified public accountants (CPAs), and tax preparers. These experts assist taxpayers in understanding their requirements, preparing and filing tax returns, resolving tax concerns, and making tax-saving plans. They also can help customers with a variety of tax-related concerns, including tax optimization, tax negotiations, tax compliance, and tax audits.

Why do We Need Them?

Filing taxes can be a more confusing and overwhelming process, especially for individuals and businesses that are not familiar with tax codes. This is where tax professionals help clients to solve their queries in filing tax returns. They provide guidance on tax planning and help identify tax-saving opportunities. Working with tax professionals is time-saving as they analyze tax structures, prepare strategies, and finalize the right documents and forms for filing. Tax professionals make sure that the filed returns are accurate and complete to minimize the risk of an IRS audit. They also provide tax audit representation services for the clients if there is any dispute with the IRS to resolve the issue. Tax professionals can reduce your financial burden by assisting in negotiating payment plans or settling debts. An experienced tax professional can help to face the complex world of taxes with confidence.

What are their Qualifications, and Eligibility?

Tax professionals should have IRS Preparer Tax Identification Number (PTIN) that is authorized to prepare federal tax returns. Enrolled agents, certified public accountants, and tax attorneys have unlimited representation rights before the IRS. The eligibility and skills required are as follows.

  • Enrolled agents should pass a three-part Special Enrollment Examination and they must complete 72 hours of continuing education every 3 years. They have proficiency in federal tax planning, individual and business tax return preparation, and representation.
  • Certified Public Accountants should complete their study in accounting in school or college and clear the Uniform CPA Examination In addition, CPAs must comply with ethical requirements and complete specified levels of continuing education in order to maintain an active CPA license.
  • Attorneys should clearly state bar exams and they generally have ongoing continuing education and professional character standards.

Some prepare who don’t have the above credentials have limited representation rights. They can represent only the people for whom they have prepared returns and signed. Annual Filing Season Program Participants who have completed their course program and PTIN holders can also prepare tax returns.

How to Check Tax Preparer Credentials?

There are many individuals who claim to provide services as tax preparers. It is important to know their credentials before engaging in one. Choosing an incorrect tax preparer can result in poor tax filing and can even lead to disputes and tax audits. The IRS maintains a public list of specific tax professionals in order to assist taxpayers in determining the credentials and training of return preparers. Attorneys, CPAs, enrolled agents, enrolled retirement plan agents, enrolled actuaries, and Annual Filing Season Program Record of Completion recipients having valid PTINs for 2022 are listed in the searchable, sortable database along with their names, cities, states, and zip codes.

Who are Ghost Tax Preparers?

Ghost preparers are those who refuse and don’t sign the tax returns they prepare and pretend to be invisible. They refuse to digitally sign it as the paid preparer. prefer taking payment in cash and refusing to provide a receipt. They invent income to qualify their clients for tax credits. They also claim fake deductions to boost the size of the refund and direct the refund into their own bank accounts. IRS advises to beware of such tax preparers. They add more complexity to your filings than simplifying them. All tax preparers must have a valid Prepare Tax Identification Number (PTIN). IRS also makes it mandatory for tax preparers to provide a digital signature and PTIN at the end of the tax filing form.

 How to Select the Suitable One Among the Many Tax Preparers?

When looking for a tax preparer, it is necessary to choose who is knowledgeable, reliable, and professional. Some of the measures to take before selecting a tax preparer are.

  • Make sure to choose a tax preparer who can be available in case the IRS examines, returns, and has questions regarding how the filing was prepared.
  • Avoid tax preparers who claim they can obtain larger funds.
  • Ensure the preparer has PTIN with them.
  • Choose the tax preparers who enter the PTIN on tax returns and sign them.
  • Consider a Tax preparer who is available around months or years after filing the return so that they can represent on behalf of you if there is an IRS audit.
  • Make sure the credentials are checked through the IRS official website.

IRS Audit Group is a tax representation company that has a group of expert tax professionals like layers, enrolled agents, and CPAs. They help clients in resolving their state audits and IRS audits by representing them. IRS Audit Group has its proprietary audit process from the beginning of free consultation with the clients until resolving the issue in favor of the taxpayers. Please contact us for more information.

Toll-Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

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Filing 2022 Tax Returns

Filing 2022 Tax Returns –Tax Professional Can Help You If You Can’t Do It Yourself

The Internal Revenue Service has provided taxpayers with a checklist of reminders to assist them with filing tax returns for the tax season 2023. These quick practices will simplify tax preparation from collecting documents to completing a tax return. But if your tax filing is complex and doesn’t have enough time, it is better to reach a tax professional. Tax professionals know how to file tax returns without any further chances for any IRS audit by filing with accuracy. Engaging a tax professional has various benefits like

  • They don’t miss any deductions and tax credits available for you.
  • They have up-to-date information on tax codes and new changes. Saves ample time.
  • Help eliminate errors and avoid IRS Audit
  • Provide the best tax-saving strategies for upcoming tax seasons.
  • Investigate past tax returns and amend any missed deductions.

IRS Audit Group is a tax audit representation company in Los Angeles, California. With 15 years of experience, the certified tax professionals, lawyers, and experts of the company have successfully helped clients’ audit processes and understand their IRS taxing authority. IRS Audit Group has a process to follow while doing the tax filing as follows.

  • Remember To Report All Types of Income on The Tax Return
  • List out income from possible sources such as
  • Online platforms that created and sold goods.
  • Income from investments
  • Part-time or seasonal employment, self-employment, or other business ventures
  • Services offered by mobile apps.

Here Are A Few Tips from The IRS Audit Group for All Taxpayers

There are options to use Free Resources for Tax Filing.  The IRS’s Free File program, which is only accessible at, enables individuals who made $73,000 or less in 2022 to electronically file their taxes for free. Also, there are Free File Fillable Forms, with limited features that anyone may fill out and submit on their own, likewise without cost, regardless of their financial level.

As part of a 21-year agreement with the IRS, top tax software firms make their online products freely accessible through IRS Free File. Seven products are available this year in English and one in Spanish. These products can only be accessed by taxpayers on the IRS website.

The IRS advises using to pay taxes, get refund status updates, and get tax issues answered without having to wait. There is no wait time and no need for an appointment because online tools and information are accessible every day of the year. Particularly useful resources from the IRS include Let Us Help You and the Interactive Tax Assistant.

Individuals can securely log in to their IRS Online Account to obtain personal tax account information, such as the balance, payments made, and tax records, such as adjusted gross income.

For the most recent information on tax changes, scam alerts, programs, goods, and services, download the IRS2Go mobile app, view IRS YouTube videos, or follow the IRS on Twitter, Facebook, LinkedIn, and Instagram.

IRS Audit Group is a tax audit representation company in Los Angeles, California. We can transfer your IRS case to Los Angeles irrespective of your state as IRS is a federal agency. Contact us for a free consultation to review your severity of tax debt.

Toll-Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

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Filing Form W2 by the Employers for the Tax Season 2023

What is 30-day extension for Filing Form W2 by the Employers for the Tax Season 2023

The due date for filing Tax Year 2022 Form W-2 and other wage statements (including Forms W-2AS, W-2CM, W-2GU, W-2VI, W-3SS, W-2c, and W-3c) with the SSA were January 31, 2023.  This deadline was applicable for filing under paper forms or electronically. Anyone with one or more employees to whom payments ($600 or more in wages even if there was no withheld income, social security, or Medicare tax) are made must file forms W-2 and W-3.  This includes non-cash payments also for the employee’s services in the trade or business during 2022. Anyone required to file Form W-2 must file Form W-3 to transmit Copy A of Form W-2. Even employers with only one household employee must file Form W-3 to transmit Copy A of Form W-2. If an error is discovered on an employee’s Form W-2 after sending it to the SSA, submit a Form W-2c, Corrected Wage, and Tax Statement. File Form W-3c, Transmittal of Corrected Wage, and Tax Statement whenever the employer files a Form W-2c with the SSA.

Extension Available for 30 Days

One can request a 30-day extension to file Form W-2 by submitting a complete application on Form 8809. However, the extension is not automatic, and it will be granted only in “extraordinary circumstances or catastrophe”.

Penalties for Failure to File

It’s important for employers to send W-2s to their employees and file them to SSA by the W-2 deadline (Jan 31, 2023) otherwise heavy penalties for late submissions or wrong information will be imposed. Penalties apply to the person or employer required to file Form W-2. The penalties apply to both paper filers and e-filers. The IRS can impose penalties for one or a combination of the below reasons.

  • Failure to file correct information returns by the due date.
  • Failure to furnish correct payee statements and /or Civil damages for fraudulent filing of Forms W-2.
  • Failure to file and failure to furnish penalties.

Penalties for intentional disregard of filing and payee statement requirements are $580 and, have increased due to adjustments for inflation. The higher penalty amounts apply to returns required to be filed after December 31, 2022. The penalties for each information return or payee statement for the tax season 2023 are clearly stated by IRS in this link. Taxpayers will receive an IRS notice through mail about the penalties if imposed.  If one likes to dispute the penalty, one can still contact the IRS explaining the reason through a formal letter. But it is advisable to engage a tax professional who can understand your situation and guide you accordingly.

Generally, an employer needs to furnish Copies B, C, and 2 of Form W-2 to their employees by January 31, 2023. The employer will meet the “furnish” requirement if the form is properly addressed and mailed on or before the due date. If employment ends before December 31, 2022, an employer may furnish copies to the employee at any time after employment ends, but no later than January 31, 2023. Employers may furnish Forms W-2 to employees on IRS official forms or on acceptable substitute forms.

IRS Audit Group is a tax audit representation firm from Los Angeles, California. The Company has a team of certified tax lawyers experienced in state tax and federal tax. Regardless of client location, the tax experts can review your audit situation and we represent the IRS on behalf of the taxpayers for a better outcome in favor of the client. Please contact us for more information.

Toll-Free: (888) 300-6670

Emergency Number: (310) 498-7508

[email protected]

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How IRS Audit Group Help Taxpayers in Tax Audit Representation? – Highlights of Services Offered by IRS Audit Group

IRS Audit Group consists of lawyers, CPA’s and enrolled agents who are specialized exclusively in “Tax Audit Representation”.  With a track record of about 16 years, IRS Audit Group helps taxpayers in facing complex audit situations.


IRS Audit Group renders its services in all the part of the United States.  The services offered by the IRS Audit Group include tax audit, tax consultation tax payment plans, tax relief, and Tax Audit Representation.  Beyond these services, the firm is providing services for individual income taxes, business income taxes, offshore accounts and foreign bank account reporting, tax penalties, employment taxes, estate and gift taxes, payroll taxes and employee versus independent contractor classification. Also, the Group specializes in issues related to California state tax and other tax debt-related matters.  Another important highlight about the Group is that it extends free consultation with their attorney.  The benefit of a free consultation helps taxpayers to understand the scope of their tax problems with the IRS.


The tax professionals of IRS Audit Group have expertise in tax auditing and tax consulting.  They are dedicated to resolving tax problems and committed to offering their best service to clients including 24/7 live support to their clients.  To facilitate client interaction, the Group has set up in Beverly Hills and Newport Beach.  IRS Audit Group believes that it is the right of a taxpayer to be represented by a competent tax attorney.  The tax attorney helps taxpayers to avoid the penalties and interests by understanding the scope and issues on tax returns.


IRS Audit Group helps tax audit representation by adopting the right communication with IRS authorities.  With a deep knowledge of the law, the partner’s fight for the right of taxpayers, and associated benefits.  The firm helps in resolving issues emanated out of tax audit, and provide solutions to prevent the recurrence of such audit.  The firm facilitates in getting an Offer in Compromise which means the individual qualify to settle the tax debt in a lesser amount than the original total due they owed.   IRS Audit Group is friendly and easily approachable to its customers.  The reviews about the services of IRS Audit Group mentions that IRS Audit Group helps customers to understand their rights and fights for them with IRS.


IRS Audit Group provides service in State audit representation against governmental agencies.  The experienced tax professionals of the firm help taxpayers even in extremely rare cases.   In tax audit cases, IRS Audit Group has helped many customers to reduce the tax liability including business expenses and deductions.  IRS Audit Group makes the audit process stress-free for them. Before going for the consultation, it is advisable to list out all your receipts and documents in order.  Thereafter, you can book a free consultation with IRS Audit Group can make your audit process stress-free.  They will appoint a tax attorney for your case to represent you in the IRS.  In every step of the process, they will communicate properly with their clients.


The IRS Audit Group provides different payment options for the taxpayers those who are financially unable to pay their tax debt in full.  IRS Audit Group will help you to find the best payment option in order to reduce your tax burden. By understanding the financial situations of its customers IRS Audit Group will suggest the best payment option fits for their needs.

Contact us – [email protected] /1-888-300-6670

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Tax Filing Due Date Oct 15 2019

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

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

Does IRS Reject Your Tax Extension Application?

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

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

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

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

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

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

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

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

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

IRS Repayment Plans

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

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

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

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

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

[email protected] / 1-888-300-6670

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IRS Tax filing due date Oct 15 2019

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

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

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

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

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

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

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

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

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

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

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

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

Contact Us: – [email protected]/1-888-300-6670.

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

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

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

Types of IRS audit

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

There are four types of IRS audits:

  1. Correspondence Audit

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

  1. Office Audit

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

  1. Field Audit

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

  1. Random Audits

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

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

The chances of getting audited

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

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

Can the IRS audit you after a refund?

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

Who can represent a taxpayer in IRS Audit?

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

Contact us immediately: [email protected]/ 1-888-300-6670.

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

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

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

What If You Miss the Tax Final Filing Date?

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

Forms and S Corporations

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

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

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


Advantages of S Corporation Taxes

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


Disadvantages of S Corporation Taxes

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


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


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


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

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