Archive for June, 2007

Surviving an IRS Tax Audit

Tax Audits No Comments »

Getting a notice that you’re being audited by the IRS can strike fear in the hearts of the bravest of taxpayers. But educating yourself and following a few simple rules can make the process less painful.

Audit Types

Some audits are worse than others. You can expect either:

  •  correspondence audit, by mail, asking for a straightforward answer (by mail) on less complicated issues, such as proof of deductions
  • An office audit, held in the IRS office, where you will be asked to produce receipts and other documents related to specific issues
  • A field audit, where the IRS agent comes to your home or place of business

Showing Financial Documents

The IRS has the right to look at your financial records to see if you have reported your deductions, exemptions and credits accurately. But it’s to your advantage to:

  • Ask questions of the IRS agent ahead of time to make sure you understand exactly what the IRS is looking for
  • Provide only the documentation that is being asked for, and nothing more
  • Organize the paperwork you turn over to the IRS, so that the audit agent does not have to go looking through stacks of unrelated documents and find something else that needs auditing
  • If you are missing receipts or other documentation, try to reconstruct the information as accurately as you can, based on other documentation

Audit Preparation

There are many things you can do before an audit to get ready:

  • Talk to a IRS tax attorney, IRS Tax Lawyers or certified public accountant to understand the issues the IRS will be focusing on
  • Thoroughly review IRS Tax Publication 1, the Taxpayers Bill of Rights, which would have been included with the notice you were being audited
  • Research the issues on the IRS website, www.irs.gov
  • Discuss the situation with the professional IRS tax preparer, or your IRS Tax Lawyers who helped you with the return(s) in question, and decide whether they should be present with you in the audit
  • Do not hesitate to ask for a postponement of the audit, especially if you are having trouble assembling all of your records

During the Audit

Many IRS Tax Lawyers advise having a IRS Tax Lawyer or certified IRS Tax professional represent you during the audit, instead of going yourself.

If you’re going to be present during the audit:

  • Do not freely volunteer information of any type
  • Answer questions as concisely as possible
  • Do not lie
  • If you sense things are not going well, do not hesitate to halt the audit so that you can consult with your IRS Tax Lawyers or accountant before continuing
  • Ask to speak with the audit agents supervisor if you think the agent is not being fair

The IRS must complete an audit and give you an examination report within three years of the time you filed the return.

Appealing Audit Results

Most people come out of an audit owing some amount.

What can you do when you can’t live with the tax bill you get after an audit?

  • Meet with the auditor and their supervisor to discuss the process and results, and see if they are willing to be a little flexible to avoid an appeal
  • Appeal the IRS Tax audit results to the IRS Appeals Office
  • Take an appeal in Tax Court

Appealing your case within the IRS or to Tax Court will often net you some savings, and buys you time to figure out how you will pay the final tax bill.
Interest continues to build on the amount owed while you are appealing, and an appeal within the IRS may uncover issues not spotted by the initial auditor.
Instructions for appealing an audit result should come with the examination report, but you can also find this information at your local IRS office.

Follow the steps above and you will be helping yourself to get through the IRS Tax Audit with a minimum of disruption.

   

IRS Tax Bankruptcy

IRS Tax Bankruptcy No Comments »

You may be able to bankrupt against the IRS

Caution must be taken when considering if bankruptcy will eliminate your IRS Tax debt.

  • While bankruptcy can help, most people want to avoid bankruptcy if at all possible.
  • Certain IRS Tax Debts can be eliminated by bankruptcy, but not all IRS Tax Debts are able to be eliminated.

An Offer In Compromise

An Offer in Compromise is quite often a better alternative to bankruptcy, and the offer can erase all of your IRS Tax Debts - even if bankruptcy won’t!
If you qualify for bankruptcy, you probably qualify for an Offer in Compromise.

  • If you are considering bankruptcy because of federal taxes, be careful to examine all your other options first - options which can stop the IRS.
  • No ned to ruin your credit more than you need to
  • If you have taxes that could possibly be eliminated by bankruptcy, the IRS must take that into consideration when you submit an Offer in Compromise.
  • With the IRS’ new Offer in Compromise rules, bankruptcy should only be used when there is no other alternative available.

All these are reasons that you should find IRS Tax Lawyers to help you in your IRS Tax Debt Problems. Look below for resources to help you out of your IRS Tax Debt Problems.

Why You Need IRS Tax Lawyers

Why You Need IRS Tax Lawyers No Comments »

Why should you use IRS Tax Lawyers instead of a Tax Preparer or CPA

There are two huge reasons why you should use IRS Tax Lawyers :

Truly complete advice

Only IRS Tax Lawyers can show you all of the options you may qualify for, including tax bankruptcy.
It’s always best to call IRS Tax Lawyers first, as you no not need to find out about any legal options you may have had when it’s too late to use them.
Tax Preparers and C.P.A.’s are not able to give you legal advice, such as if you qualify for a tax bankruptcy.

Confidentiality

Only IRS Tax Lawyers insure that you have the all-important "lawyer client privilege" to confidentiality regarding all of your communications.

What does this mean to you? You must always be very careful with IRS Tax matters
Only IRS Tax Lawyers are legally exempt from being forced to testify against you should the IRS prosecute you criminally in the future. IRS ax Lawyers do not have to repeat to the IRS what you’ve told them.

There are workable solutions to your IRS Tax Problems

If you need the services of professional IRS Tax Lawyers, check out the section below to find some great great IRS Tax Lawyers.