IRS Audit Representation
Having to go toe-to-toe with the IRS can be unnerving at times, but having a CPA at your side can make the process go smoother. We work with you to first assess your situation and provide you with expert advice in resolving it both timely and thoroughly. Audits require gathering records to substantiate each item reported on your tax returns. Even if your tax returns were honestly compiled and prepared, if you don’t have thorough record keeping, meaning you can prove that each item was a legitimate transaction, the IRS can, and usually does, disallow it.
You must have a comprehensive understanding of tax law. Do not assume that just because an IRS audit said or quoted something that it’s 100% accurate and written in stone. Must of tax law and IRS tax code be interpreted in different ways. The IRS auditor will undoubtedly choose the way that leads to them receiving larger tax payments and penalties from you.
IRS Auditors are trained to extract more information from you than you have a legal obligation to provide. Even though we are not attorneys, we are legally able to represent you in front of the IRS and we understand your rights. In some instances, we handle everything for you so you don’t even notice a work interruption.
Your IRS Transcript
Obtaining a copy of your IRS transcript is critical in analyzing the options available to resolve your tax problems. This shows us how much leniency the IRS is likely to give you, and it allows us to see if there is a hole in the IRS’s claims. If you have your official IRS Transcript, please bring it to your first appointment with us. If you don't, we'll help you get it.
Offer in Compromise
The Offer in Compromise program allows you to settle your IRS debt for much less than you owe, especially if you cannot afford to pay.
The IRS Fresh Start Initiative is there to help individuals and small businesses meet their tax obligations. The highlights include:
- Reduced installment agreement requirements for taxpayers owing $50,000 or less.
- Reduced installment agreement requirements for taxpayers owing payroll taxes of $25,000 or less.
- Longer periods of time for taxpayers to pay back their debt with installment agreements.
- Expanded living expenses through the OIC program.
- Lowered amount of future income required.
IRS Installment Agreement
If you don't qualify for the IRS Offer in Compromise program, we’ll see about a payment plan for you. This gives you more time to pay off your tax debts, however, interest and penalties continue to accrue. If you don’t use the OIC or payment plan options, the IRS can garnish your wages or use Levies and Liens to collect. It’s best to use one of the aforementioned methods to pay off your IRS debt.
Failure to pay payroll taxes is a more serious offense than failure to pay income taxes. This cannot only result in substantial penalties to the employer, but it may also result in the taxes being directly assessed against the owner or manager of the company. If you can’t pay payroll taxes, we believe the best scenario is usually to just lock your doors and cease operations. If you’ve gotten behind on paying payroll taxes and income taxes, catch up on payroll taxes ASAP, and then work on catching up on income taxes using the options mentioned above.
IRS Penalty Abatement
Penalties assessed by the IRS can mount up quickly. Using our understanding of the tax laws and the methods available for penalty abatement, we can represent you in negotiating the abatement of the penalties. We usually need to see a copy of your IRS records.