Audit Consultation

Tax issues and problems

Tax issues and penalties can be hard and sometimes can make a long-lasting impact on a business or individual. Issues like tax audits, penalties, collections, and sales tax problems can be hard to resolve. A tax audit for one should not be overlooked for any reason. They are four types of tax audits from the IRS, and they are; correspondence audit, office audit, field audit, and taxpayer compliance measurement program (TCMP) audit.

The correspondence audit: is the simplest and comprises about 75% of all the audits. It involves sending a letter through an email asking a taxpayer for information about a particular tax return. If the information submitted does not match with that at IRS, they will send you another letter through email, notifying you that the IRS is proposing am adjustment for under or overpayment of tax obligation. You will need to respond with whether you agree or disagree. You will need to respond also with documents to support your claims if you choose to disagree. But if you agree to owe, you will have to submit your payment immediately to IRS or request a payment plan. This email has to be replied within 30days. Ignoring these emails will only make matters worse.

An office audit is when the IRS has questions to ask about any of your returns that are too complex or large for a correspondence audit, but too small for a field audit. They tend to ask the taxpayer questions concerning the areas where they feel there are problems. Most of the office audits are related to deductions (schedule A), business profit or loss (Schedule C), or income/expenses (schedule E). Questions asked by auditors may expand if they suspect there may be problems in other areas or if the taxpayer, due to nervousness, gives too much information which he was not supposed to give out.

A field audit is the most comprehensive and detailed audit by the IRS. It involves the IRS auditors or agents visiting the home or place of work to examine the records of the taxpayer. The agents sent are usually more knowledgeable and skilled, and most time may not want to limit themselves to areas with problems, especially when it involves businesses. A field audit is the most severe and intrusive form of a tax audit. It is vital that the taxpayer gets the services of a tax attorneyif you ever happen to get selected by the IRS for a field audit.

TCMP audit: is aimed at updating the data of the IRS’ DIF scores.
Therefore, it is important that if you are selected for an audit that you seek out for the help of a tax attorney who will assist in resolving your problems and who will present your necessary documents and information to the auditors. This will help reduce the risk of taxpayers giving out too much information to the auditors.

Tax penalties are attracted once you fail to pay your tax or when you do not pay ultimately. They are also charged when you fail to file your tax returns or fail to honor your checks or other payment forms. However, they stop to accumulate once taxes are cleared or paid off completely.

At ANB, we will provide you with an experienced and professional tax attorney to you to make sure that your audit problems are settled satisfyingly, and penalties are avoided. We are also experts in solving a wide range of your tax issues, including tax collections, penalties, sales tax problems, and any other problems. Any of your problems are handled in such a manner that ensures our clients are protected and satisfied. We also do what we can to make sure such problems do not arise again in the future.