IRS Audit Representation, Huntington Beach, CA
With the exception of an anticipated tax refund, no one enjoys receiving mail from the IRS. With that being said, if the IRS notifies you that your income tax return has been selected for an examination, commonly known as being audited, do not dismiss it. If the IRS determines you owe more taxes than you paid, statutory interest and penalties will continue to grow.
Tax audits can be an intimidating experience. You must be prepared to explain the nature of your income and substantiate the expenses and deductions claimed on your tax return.
If you find yourself in this position, it is time to seek help from a tax professional. At Yorktown Main, we are experienced Enrolled Agents who can navigate complex tax law and aggressively represent your interests at a more affordable rate than our competitors.
Do not allow interest and penalties to grow. Contact us today to schedule a free consultation.
Retain Representation - Starting at $225
Although you can legally manage an audit yourself, it is best to have professional representation. Tax law is incredibly complex and the power of the IRS should not be underestimated. As enrolled agents, we have the training, legal authority, and experience to help control the progress of the audit while protecting your rights. Many times, taxpayers will talk more than they should which leads the auditor into areas that would not have been examined. Don’t be penny-wise, pound foolish.
Our audit services start at $225 but fees can range from $1,500 to $3,000 or more for complex audits. No fees will be charged prior to having a signed Tax Engagement Examination Letter.
Free Phone Consultation - Call Today (949) 625-4271
Filing Back Tax Returns: it's never too late to file your back tax returns.
Offer in Compromise: a program to settle your tax debt for less than you owe by making a lump sum or short term payment plan to pay off the IRS at a reduced dollar amount.
Installment Agreements: a monthly payment plan for paying off the IRS.
Partial Payment Installment Agreement: a long term payment plan to pay off the IRS at a reduced dollar amount.
Not Currently Collectible: a program where the IRS voluntarily agrees not to collect on the tax debt for a year or so.
Innocent Spouse Relief: provides relief from additional tax you owe if your spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits.
Why was my return selected?
A tax audit is usually initiated in one of two ways. First, computer programs are used to identify returns that may have incorrect amounts. The programs may be based on:
- Information returns (e.g. 1099’s or W-2’s)
- Studies of past examinations
- Certain issues identified by other special projects
Another way is to use information from compliance projects that indicates a return may have incorrect amounts. These sources include:
- Public records
Are there different kinds of audits?
Yes. The two types of audits are Examinations by Mail and Examinations in Person. The first type of audit begins with a letter from the IRS requesting additional information about certain items on your return, such as income, expenses, and itemized deductions. Although this type of audit is far less intrusive than one in person, professional representation is still highly recommended to avoid making a small issue into a big one.
Examinations in Person are the audits that strike fear into the hearts of every American taxpayer. The IRS will notify you, often by mail, that your return was selected and that your audit will be conducted in person. As a taxpayer, you have the right to have a representative act for you and not be present at the audit yourself. This is in your best interest. Audits can be emotionally charged and saying one wrong thing can make the situation much worse.
What are the statute of limitations?
Generally, the IRS must examine your return and assess tax within 3 years after a return is due or filed, whichever is later. In some cases of fraud, the statute of limitations may be extended.
The IRS completed its audit. Now what?
If you agree to the proposed increase in tax, you can sign an agreement form and pay any additional tax you may owe. If you do not agree with their findings, you have a few options. You can request an immediate meeting with the examiner’s supervisor to explain your situation or request an independent mediator to analyze your case. If the mediator doesn’t work, you can appeal the decision.
I can't afford my new tax bill. Do I have options?
If you are unable to pay your tax bill in full, you may be able to setup an installment agreement, temporarily delay the collection process, or apply for an Offer-in-Compromise. Each of these programs depends on your individual situation.