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

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

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

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

Extended due dates for S Corporation, LLC & Partnership

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

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

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

How to file for extension?

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

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

Penalties for Late Payment of Tax

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

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

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

E-mail to: – [email protected]/ Call Us @1-888-300-6670

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

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

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

• Be a domestic corporation
• Have only allowable shareholders
• like individuals, certain trusts, and estates
• cannot be partnerships, corporations or non-resident alien shareholders

• should not have more than 100 shareholders
• Have only one class of stock
• Certain financial institutions, insurance companies, and domestic international sales corporations are not eligible.

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

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

Difference between S-corporation and LLC

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

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

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

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

Call Us: – 1-888-300-6670 or email us:- [email protected]

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

How does the IRS call you?

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

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

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

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

IRS scam calls

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

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

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

How to find these scam calls

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

What to do when the IRS call you?

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

Call us: – 1-888-300-6670 Email to:- [email protected]

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

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

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

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

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

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

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

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

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

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

[email protected] Ph: 888-300-6670

Avoid Late Filing and Late Payment Penalties! Taxes Are Due on April 15th.

Filing taxes is an important part of living in the United States. If you are employed, self employed, or unemployed, you must file your taxes by April 15th. If you don’t file taxes – or file an extension – you may be penalized by the Internal Revenue Service. Filing taxes is a crucial step in living hassle free. If you skip your filings, the IRS will come after you and give you headaches that will distract you from your daily life! Instead of worrying about when are taxes due, give us a call and get them filed and over with! IRS Audit Group can help you file your taxes as soon as possible. We can even help you file extensions if you need a little more time to get your taxes together. If you contact us today, we can tell you the steps in filing your taxes, and we will make sure you bring all the necessary documents in order to make the process as easy and as efficient as possible.

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!

The End of OVPD – The Internal Revenue Service’s Offshore Voluntary Disclosure Program or OVPD, which allowed United States taxpayers to voluntarily disclose previously undisclosed foreign accounts, assets, or income is coming to an end. The initiative waived the possibility of criminal prosecution for those that disclosed the ownership of such foreign accounts, assets and income through the program.

The OVDP was created in 2009 and will be ending almost a decade later in 2018. So far, more than fifty-six thousand taxpayers have made disclosures through the program. Over 11 billion dollars has been paid through a combination of back taxes, penalties and interest payments.

While the Program seemed like a success, the number of taxpayers utilizing the program has decreased year after year. In 2011, eighteen thousand taxpayers used the program, but in 2017 only six hundred did. With OVPD gone, those owning undisclosed foreign assets, accounts or income could face prosecutions. It has been reported that the Department of Justice, in charge of such prosecution, has received increase in its budget to investigate, enforce and prosecute those in violation of bank secrecy and tax laws.

Fresh State Initiatives While the Internal Revenue Service is ending the Offshore Disclosure Program, the agency’s Fresh Start Initiatives is still applicable. There are a couple of important things to note in the IRS Fresh Start Initiatives. The IRS Fresh Start program involves lessened tax liens, installment agreements and possible compromises for those with unpaid taxes. If you’re wondering, the IRS statute of limitations, that is the amount of time the Internal Revenue Service has to assess your tax return is three years.

Innocent Spouse Relief For those wondering about the IRS Innocent Spouse Relief Program, the Internal Revenue Service has information on their website. The program mainly boils down to three options for separating liability between you and your spouse that may be necessary depending on the circumstances.

It is important to note that while filing taxes jointly has certain advantages, both taxpayers are made liable for unpaid taxes, penalties, interest and errors. A spouse remains liable even after a divorce, even if the mistake was made involving the non filing of their spouses income. To quality for the innocent spouse relief program, you must be be able to establish that at the time of signing you were unaware of the error, that the error was solely that of your spouse and that it would be unfair to hold you liable for the unpaid taxes, penalties and/or interest.

Contact our team at IRS Audit Group Beverly Hills to learn more about such issues and to get the help you need today. Tax relief is easy, you don’t have to face the IRS on your own as it can be stressful and overwhelming – we are here to assist with all of your tax problems.

It’s officially tax season! May not be as exciting as it sounds to some people as they find tax time to be very stressful and overwhelming. Instead of avoiding your responsibilities, get them out of the way ASAP. That way you can sit back and wait for your refund, like many of our clients.

It is especially helpful to have a tax expert by your side so they can communicate with the IRS when necessary. At IRS Audit Group, we offer taxpayers a long list of services to guide them through the tax filing process. We promise every client the quality service and great value they deserve.

As a company that specializes in IRS Audit representation, our skilled, experienced and intelligent lawyers, EAs and CPAs will help you file your tax returns and make sure you will not be audited. When you call or visit IRS Audit Group for a free consultation, you are welcomed by real tax professionals instead of robots attempting to assist you online or by phone.

Once you receive all the necessary information (W-2 forms, receipts, etc.), make sure to sort and organize them so it is easier to handle once you’re ready to file. Then put your trust on our team to submit everything on your behalf! Contact us today to schedule an appointment at one of our locations in California.

While you’re more concerned about avoiding an audit altogether, you should still be prepared in the event that you are faced with an investigation. Overall, your chances are slim, but there is still a possibility of being randomly selected by the Internal Revenue Service (IRS).

If you receive a letter from the IRS, be sure to follow the specific steps listed. Be aware that audits do not begin with an email or phone call – they choose to conduct the audit by mail or in person.

Many business owners simply aren’t aware of what the IRS is looking for and that’s when you can ask “why am I being audited?” That way you can provide them with necessary information that will simplify the process in the long run – especially if they are questioning a small section of your tax return.

They may just need confirmation in which case you’ll need to be prepared to show documentation that supports your claims, including: receipts, bills, canceled checks, legal papers, loan agreements, logs and employment documents.

It helps to have these documents sorted by year or type of expense to expedite the process. Maintaining records can give you the confidence to face the IRS as well. While there is no deadline for completing an audit, accuracy plays a huge factor in speeding – or delaying – the process.

Always remember that you have the following rights:

• The Right to Be Informed
• The Right to Quality Service
• The Right to Pay No More than the Correct Amount of Tax
• The Right to Challenge the IRS’s Position and Be Heard
• The Right to Appeal an IRS Decision in an Independent Forum
• The Right to Finality
• The Right to Privacy
• The Right to Confidentiality
• The Right to Retain Representation
• The Right to a Fair and Just Tax System

It helps to have an expert by your side during this time and during most of your tax-related procedures. The team at IRS Audit Group is familiar with a variety of cases and can help you through the toughest scenarios. Contact us today to schedule a consultation!

According to the Internal Revenue Service (IRS) the tax season will begin Monday, January 29, 2018 and informed taxpayers claiming some tax credits that reimbursements will not be possible before late February.

They will start accepting tax returns on January 29, with approximately 155 million individual tax returns likely to be filed in 2018. The tax deadline will be April 17, 2018 so taxpayers will have two more days to file after April 15, 2018.

Many tax professionals and software companies can accept tax returns before January 29, 2018 and then submit the returns when IRS systems open. Though they accept both electronic and paper tax returns January 29, 2018, paper returns can be processed later in mid of February as system updates continue. The IRS firmly encourages individuals to file their tax returns electronically for faster refunds.

They have set the January 29, 2018 as an opening date to safeguard the security and readiness of key tax processing systems in advance of the opening and to measure the potential impact of tax legislation on 2017 tax returns.

According to law, the IRS is not allowed to issue refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) before mid-February. While the IRS can process the returns when received, it may not issue associated refunds before mid-February. They believe the earliest ACTC/EITC associated refunds to be available in taxpayer bank accounts or on debit cards started on February 27, 2018, if they can choose direct deposit and there is not any concern with the tax returns.

Taxpayers must keep copies of last year’s tax returns for at least 3 years. Those who are utilizing a tax software product for the first time will certainly need their adjusted gross income from their 2016 tax return to file electronically. Taxpayers who are utilizing the same tax software they used last year do not need to enter last year’s data to electronically sign their 2017 tax return. Utilizing an electronic filing PIN is not an option anymore.

An IRS (or State) tax audit may be conducted by mail or through an in-person interview and review of the taxpayer’s records. The interview may be at an IRS office (office audit) or at the taxpayer’s home, place of business, or accountant’s office (field audit).

The IRS will ask you to provide them with a copy of your tax return and additional documentation in order to determine your income and expenses. They typically request bank statements, receipts, general ledger, etc.

The next step may be a request for an interview and a tour of your business which can be stressful for many people. After that, the IRS will issue an audit report explaining which changes they decided to make and what will be the tax and penalties. They will allow you 30 days to respond to this report, if you don’t respond or you disagree they will issue a Final Notice of Deficiency (NOD) that will allow you to file a petition with the tax court.

You can hire the team at IRS Audit Group anytime during this process (it is highly recommended that you call us as soon as you get the first letter). If you miss the deadline and don’t contest the liability, the assessment will become final and the IRS will send you collections letters. Even at this point – years after the audit – the IRS will allow you to prove that the assessment was incorrect.

We will have to file an Audit Reconsideration and ask the IRS to put a hold on all collection while your case in under review. Remember, when filling an Audit Reconsideration you will have to provide the IRS all the documentation to prove that their assessment was incorrect.

We offer a free consultation and will investigate your case free of charge. After reviewing your documentations, we will be able to know what issues you are facing and how much time we will have to devote to your case.

Once we get your power of attorney, we will communicate with the taxing authorities.

We just need your cooperation: We will ask you to provide us with supporting documents (bank statements, invoices etc) which will be organized and sent to the IRS on your behalf.

After getting the final report, we will settle your case (with your written approval). If there is additional tax liability, we will help you with a payment plan. Call or visit us today!