Tax Audit Defense

Every year, around the 1st of January through April 15th every individual and or business is expected to file an income tax return with the IRS. This return is used by the IRS to determine what your overall tax bill should have been for the previous year. Using a number of forms and schedules provided by the IRS everyone has to report their income and expenses. Unfortunately, things don’t always go as planned and you may need some help if your tax return has been selected for an audit. The best representation and tax audit defense will be what you need to get controversies resolved.

Call us now at 877-788-2937 for a free confidential evaluation.

The IRS will review your filed tax return and determine whether or not all of the information is correct and that you either sent a check to cover what you owe the IRS or whether you are entitled to a refund check. With that said, if it is determined that there are any issues with your tax return, this will trigger the IRS to take a deeper look at your return and more than likely request an audit by correspondence, or face-to-face exam. You can elect to represent yourself, or retain our tax representation firm to represent you and defend your tax position.

So, what does it mean when you have received a notice from the IRS that your return is being audited? What it means to you is that they have determined that they need to look deeper into your return and take a look at your deductions and income that you claimed on your return. This does not necessarily mean that you have done anything wrong, however, it does mean that they more than likely found something out of the ordinary on your return and they want to determine the nature of the deduction so that they can evaluate whether or not it is acceptable. You will want to retain a good tax audit defense firm to represent you and protect your rights.

Call us now at 877-788-2937 for a free confidential evaluation.

1. Errors found in your math calculations - One of the biggest red flags of a tax return is when the IRS finds that you have miscalculations in your math on your tax return. You want to always be sure that you rechecked each and every calculation that you made to fill out a specific box on the form.
2. Leaving off income from your return - Our tax laws regarding income are very complex, but as a good rule of thumb would be to never forget to report income for any reason. If you fail to report your income and the IRS finds out, you will definitely get audited and you may also incur some sort of penalty. Our tax audit defense firm would be able to help avoid this before it became a serious problem.
3. Putting down too many charitable donations on your return - While certain charitable donations are definitely deductible and there is nothing wrong with claiming the legitimate donations. However, if you have too many that you can’t support with evidence, you will be risking the chance of being flagged for an audit by the IRS. Not being able to claim it on your tax return would not be a reason not to donate that is still strictly up to you.
4. Having too many losses on your return - The IRS does not like when you try to over claim losses in order to reduce your tax burden. Be sure that you keep good records such as invoices and proof of payment. While losses are unavoidable, if audited you need a good tax audit defense representation firm to help you when being challenged by the IRS.
5. Over claiming business expenses - When it comes to reporting business expenses you want to be sure that you can answer two distinct questions, is this ordinary expense and it is necessary for the type of work you are performing. We help our clients and defend them at audit conferences to support their tax positions.
6. Incorrectly claiming home office deductions - One of the biggest misconceptions there are that claiming all home office expenses is acceptable to the IRS. Unfortunately, you really need to be careful when it comes to your home office expenses. You want to only claim those things that you would be able to establish an ironclad expense to your business.
7. Rounding up too much - The IRS really likes to deal in round numbers; however, you should always round down. Do not assume that they will let it slide; it is in your best interest to avoid an audit and rounding down is best.

Call us now at 877-788-2937 for a free confidential evaluation.

When audited by the IRS you are allowed to have a licensed power of attorney as a representative. Only EAs enrolled agents, CPAs or tax attorneys can represent you. You do not need to face the IRS in person if you hire our tax audit defense firm, we have the experience and special knowledge to represent you and protect your rights as a taxpayer.

It would be in your best interest if you have all of the information that you used to fill out your tax return with you when you make an appointment with our tax audit defense firm. We will be able to evaluate your case and determine what we will be able to do for you. We should also be able to go over the potential penalties that you could be up against in the event that they determine that there are any serious problems with your return.

As we stated earlier, just because your return was selected for an audit does not necessarily mean that you did anything wrong. However, if during the audit they do find anything serious then you are subject to penalties and they can be severe in nature. There are four classifications of penalties that can be accessed by the IRS; Accuracy-Related, Civil Fraud, Fraudulently failing to file and Criminal Charges. Before you face the IRS and possibly be hit with one or more of the four above listed penalties you should consult with our tax audit defense firm in order to limit the damage.

• Accuracy-Related - Inaccuracies such as understated taxes can result in a 20% penalty and in extreme case, it can be as high as 40%. There are several different degrees of severity that can determine what amount of penalties you could receive.
• Civil Fraud - If it is determined that there was any fraud involved the IRS could impose a 75% of the federal tax that was owed.
• Fraudulently Failing to File - This is actually a rarity, but there have been cases that the IRS has determined that a person failed to file a tax return in hopes to avoid paying taxes.
• Criminal Charge - There are criminal type charges that the IRS could pursue both misdemeanor and felonies. These types of penalties are also rare and really depend on the results of the audit.

Don’t let the IRS ruin your life; get the best representation by our reliable tax audit defense firm. We represent taxpayers in all 50 states.

Mike Habib is an IRS licensed Enrolled Agent who owns and operates a boutique tax audit defense firm providing IRS and State audit and appeal representation to individual and business taxpayers with tax controversies in various metro areas such as Los Angeles, Whittier, Pasadena, Glendale, Burbank, Orange County, Riverside, Palm Springs, San Bernardino, Palmdale, Bakersfield, New York, New Jersey, Chicago, Houston, Phoenix, Philadelphia, San Antonio, San Diego, Dallas, San Jose, Detroit, Jacksonville, Indianapolis, San Francisco, Columbus, Austin, Memphis, Fort Worth, Baltimore, Charlotte, El Paso, Boston, Seattle, Washington DC, Milwaukee, Denver, Louisville, Jefferson, Las Vegas, Reno, Hempstead, Tucson, Nashville, Davidson, Portland, Tucson, Albuquerque, Santa Fe, Anchorage, Atlanta, Long Beach, Fresno, Sacramento, Mesa, Kansas City, Cleveland, Virginia Beach, Omaha, Miami, Oakland, Tulsa, Honolulu, Minneapolis, Pittsburgh, Colorado Springs, Arlington, Wichita, Birmingham, Montgomery, Tampa, Orlando.

Tax audit defense for clients throughout Southern California including Norwalk, Santa Fe Springs, Downey, Pico Rivera, Montebello, Hacienda Heights, La Habra Heights, West Covina, La Habra, Brea, Fullerton, Placentia, Yorba Linda, Cerritos, La Mirada, Lakewood, Anaheim, Santa Ana, Long Beach, Compton, Torrance, Los Angeles, Pasadena, Beverly Hills, Santa Monica and throughout Los Angeles County, Newport Beach, Irvine, Orange County, Corona, San Bernardino County, Riverside County, the Inland Empire, the San Fernando Valley, Ventura county, and the San Gabriel Valley.