6 Things to Know about Surviving an IRS Audit Filing Your Taxes Working with a CPA Topics

If your tax return deviates from the norm for small businesses, the chances of an IRS tax audit increase. By law, you are required to keep all the records you used to prepare your tax return for at least three years from the date you file the tax return. You might want to keep accurate records longer so you are prepared if an auditor uses tax returns from six years ago.

• Higher thresholds apply to married taxpayers filing jointly and to U.S. persons residing abroad.
• A tax attorney will give you not only tax advice, but defend you in the audit, as well as help you keep cool, conserve resources and allocate those resources appropriately.
• Accounting software and automation services will help you get through the complex accounting process.
• Do not provide more documents than what is being requested by the auditor.
• In fact, there is no statute of limitations at all in cases involving false or fraudulent returns, willful attempts to evade tax, or if no tax return has been filed.
• On the other hand, if you file late and donothave an extension, the statute runs three years following your actual filing date.
• The IRS may have an extended amount of time to audit you, even if there is no fraud or criminal issues at hand come.

An ITIN is an identification number issued by the U.S. government for tax reporting only. Having an ITIN does not change your immigration status. You are required to meet government requirements to receive your ITIN. Karen J. Tenenbaum is a New York & IRS tax attorney and the managing partner of Tenenbaum Law, P.C. – a law firm providing legal counsel to individuals and businesses facing IRS and New York State tax problems. Importantly, if you never filed a tax return, the statute of limitations does not start running so you could be liable for those unpaid taxes even 20 years later.

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The IRS’ computer system is looking for deductions that are outside the norm for people in your profession. According to the IRS, 2.53% of those earning between $1 million and $10 million were audited in 2015, and 8.1% of Americans who made $10 million or more were. The largest percentage of Americans who are audited make over $1 million. It can be as simple as a missing form, she said, “and often it happens to people who rush irs audit around at the last minute.” Here is a link to our practice overview video onwarning signs that an audit has gone criminal. In addition to our offices inIrvineandLos Angeles, the Tax Law Offices of David W. Klasing now have offices inSan Bernardino,Santa Barbara,Panorama City, andOxnard! A review of the two previous tax years showed that there was no change or a small tax change, whether it was a deficiency or overassessment.

Tenenbaum Law, P.C. Within 3 months they completely solved the problem. They got an immediate stay on collections and amazingly got all my monies refunded with interest. Very professional and attentive to my specific issues. If you have a tax issue I highly recommend Tenenbaum Law.

How far back can the IRS go to audit my return?

This portion of the site is for informational purposes only. The statements and opinions are the expression of the author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law. However, while three years is the typical cut-off point, there are also some situations in which the IRS will extend or even double the standard audit period. Depending on the circumstances, the IRS audit period will generally range anywhere from three to six years. No one wants to go through an audit twice, but there are steps you can take to avoid future audits. Staying on top of your books and hiring an experienced tax advisor to prepare your taxes are two of the most important ways you can maintain confidence in your position with the IRS.

If you choose not to meet with the IRS auditor face-to-face, your representative must have proper written authorization. It will depend on the type of audit you have, but for a correspondence audit the IRS normally grants a one time 30-day extension. For an in-person interview, you’ll need to request the extension from the agent assigned to your audit or their manager. The good news is — particularly for those who hire tax attorneys for legal advice — we all take a course in dealing with auditors. Regarding face-to-face examinations, the Central Reconsideration Unit receives those tax returns that were previously examined by the Area Office or Campus Examination function. These factors will overrule the taxpayer’s request for a case transferal.

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For all these reasons, be careful and keep good records. If you miss the tax filing deadline, you will be subject to failure-to-file penalties. To avoid this, you should file an extension prior to the deadline. Extensions allow extra time to file a tax return, but it does not give you extra time to pay.

• Please do not include any confidential or sensitive information in a contact form, text message, or voicemail.
• If you have a tax issue I highly recommend Tenenbaum Law.
• The taxpayer must estimate the value of the item, and that’s what may bring about a tax audit.
• A standard for profitability is known as the 3 of 5 test.