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Hiring a Tax Expert to Face an IRS Audit

  Sanjiv Gupta CPA  Published 
Hiring a Tax Expert to Face an IRS Audit

“I am nervous and unsure about the impending audit from the IRS for my 2010, tax returns. I believe that they are pointing towards the irregularities in my deductions and income. I need to know whether I would be required to represent myself to them or can it be taken care of in case I pay the arrears involved?” asked Mr. Ravi. S

In this scenario, we strongly recommend him on hiring an expert who can represent him on this tax audit. This is crucial to him as the IRS can refer his case to criminal investigation for prosecution. He not hiring a representation would tantamount to approaching the court with no lawyer.

Below are mentioned some facts about IRS audits in order to help you understand the gravity of the situation being discussed.

The IRS has the option of auditing you by mail, face to face in there or in your office. Amongst all the three, the face to face audits is more serious as the examiner would closely scrutinize the documents related to your income & deductions.

Initially, you are interrogated on some 54 seemingly innocuous questions. What will come next would depend on the way you had handled these questions initially. Talking more than required and speaking the truth is recommended here; facing this unprepared, can fail you on both these crucial aspects.

Hire a professional tax expert in order to avoid this sticky situation. The below-mentioned points are advisable to be kept in mind while hiring a professional tax expert.

Choose an experienced hand over a greenhorn in this field. Hiring someone aptly qualified with hands-on experience in handling IRS audits would save you unnecessary costs over time. An experienced professional would productively channelize your fundamental rights – fairness, due process & representation – as a taxpayer, keeping your best interests in mind.

Following are some of the strategies we have used at our firm ( Tax Resolution Services) for handling IRS audits earlier: If possible, obtain a “ no change” letter; making sure that any additional taxes assessed remained lowest as per the law; helping clients in reducing any accruing interest, penalties or back taxes, along with pushing away the possibility of a criminal prosecution by the IRS; Systematic steering of the client through the entire process.

Other than checking the credentials at a meet-up, the candidates, as well as the company’s credentials, can additionally be verified through Google and by fishing out the ratings of the Better Business Bureau of the same.

 Seminar on Audit By Sanjiv Gupta CPA

BoE, IRS and FTB Tax Audit On The Rise | Protect Yourself

We have seen an increase in the Franchise Tax Board, Board of Equalization (Sales Tax) and IRS Tax Audits in recent months.  In the last few months, California Sales Tax Officers have also visited the businesses in various counties including Alameda, Contra Costa, Santa Clara and requested to see their sales receipts and record of their sales transactions.  In many cases, BOE has asked these businesses to bring their detailed sales record to the BoE office in Oakland CA.  Certain types of businesses like Gas Stations, Grocery Stores, Retail Stores and businesses with the majority of cash transactions are of particular interest to FTB and IRS.

We feel it is important for our fellow business owners to prepare for such a visit or an audit by IRS, BoE, EDD or FTB.

We will be holding a free conference call in February to discuss important steps you can take to prepare yourself for such a visit.  We will discuss many scenarios that may catch you off guard.

For example:

  • What kind of documents IRS, FTB, BoE or EDD may ask to see?
  • How to prepare your employees for BoE, EDD< IRS and FTB visits?
  • What should your employees know about BoE, EDD, IRS and FTB Audits?
  • How to deal with customers when BoE,  IRS or FTB agents are at your site?
  • What should you tell or not tell to Tax Auditors?
  • When to get professional help with your Audit?

When can you join the conference?

Feb 16th, 2013 From 10:00 AM to 12:00 PM

Eventbrite - Dealing with Audit (FTB, Payroll, IRS,)

Register and Join the Conference Call | Learn and earn a chance to win iPad Mini.