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Best Payment Option for Taxpayers

Do you have a problem with the Internal Revenue Service (IRS)? Specifically when it comes to your payment options? You should opt for a payment plan! This way, you don’t need to wait until you can pay off the total amount which can easily add up due to penalties.

 

This is the ideal option for those looking to save their money and are trying spend wisely while on a budget. The best part? You can apply for individuals and businesses. This provides the opportunity to pay in installments or online.

 

We understand that taxpayers have plenty of costs to cover which is why we want to help you get set up with affordable payments. This process is quicker and much simpler; rather than dealing with larger amounts, you’ll owe what you can pay within a certain time frame.

 

The IRS states that individuals must owe $50,000 or less in combined individual income tax, penalties and interest to be eligible and businesses must owe $25,000 or less in payroll taxes. Both must have filed all required returns as well.

 

Call IRS Audit Group at (888)330-6670 and we can set up a payment plan for you to immediately break down your costs. We know exactly what to do! As experts in negotiation, we can and will communicate with the IRS on your behalf.

 

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Benefits of IRS Payment Plan

If you’re worried about how to pay your dues to the Internal Revenue Service (IRS), you’ll want to review all your options. A good choice would be to make monthly payments through an installment agreement. This would help reduce or eliminate penalties and interest fees and your wallet won’t take such a big blow.

 

In order to qualify, the IRS requires that you file all required tax returns prior to applying. You may be eligible for an online payment plan if you owe $50,000 or less in combined individual income tax, penalties and interest or if your business owes $25,000 or less in payroll taxes.

 

The trickiest part of this agreement is getting approved – IRS Audit Group can help you understand the process and will stay on top of deadlines. Negotiating with the IRS is easier with the help of a tax professional who will represent you and is willing to speak effectively on your behalf.

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IRS Guidlines To Audit Small Businesses

IRS agents are trained on specific audit techniques for different industries. The guides that these agents are trained to use are referred to as Audit Techniques Guides (ATGs), and they focus on providing guidance for examiners in different market segments. These guides are so crucial to the IRS because they create consistency in their audits, since everyone is using the same guidelines.

 

The ATGs usually consist of; common and rare industry issues, techniques for examinations, jargon for that particular industry, business practices, and any other information that can assist them in the examination process.

 

Once you receive a notice of an audit, it would be wise to review the ATG for your industry in depth with your representative. The reason any business owner can find value in these guides is due to the abundance of information you can find. The audit target will give you an advanced view of what to expect in the exam, that way you can prepare a strong defense instead of walking into the exam blind. These documents even give the revenue agent resources within the IRS database to find out; credit scores, currency transaction reports, and information returns that were provided to the taxpayer by third parties.

 

And if you’re thinking about trying to hide sources of income, think again. These reports are so in depth, that they provide methodologies for finding any cash income that went unreported. So, to ensure the best possible outcome in the case of an audit, it’s essential for the taxpayer to perform a thorough review of the appropriate ATG.

 

The guides below can be viewed at the IRS website address: Remember to find the most appropriate guideline for your business.

 

NOTE: The dates that these guides were issued are shown next to them. These guides are up to date as of October, 2016.

https://www.irs.gov/businesses/small-businesses-self-employed/audit-techniques-guides-atgs

 

1. Aerospace Industry; 01/05
2. Air Transportation; 04/08
3. Architects and Landscape Architects; 08/2011
4. Art Galleries – Audit Technique Guide; 01/2012
5. Attorneys Audit Technique Guide; 03/2011
6. Business Consultants; 07/2011
7. Capitalization v Repairs; 11/2010
8. Cash Intensive Businesses; 04/2010
9. Child Care Provider; 03/09
10. Coal Excise Tax; 05/05
11. Commercial Banking; 5/01
12. Conservation Easement; 11/2011
13. Continuation of Employee Healthcare Coverage; 03/2012
14. Construction Industry; 05/09
15. Cost Segregation; 01/14/05
16. Credit for Increasing Research Activities (i.e. Research Tax Credit) IRC§41; 06/05
17. Entertainment Audit Technique Guide; 10/2015
18. Equity (Stock) – Based Compensation Audit Techniques Guide; 08/2015
19. Excise Tax on Indoor Tanning; 7/2012
20. Executive Compensation – Fringe Benefits; 02/04/05
21. Factoring of Receivables; 06/06
22. Farmers; 07/06
23. Fishing Audit Technique Guide; 08/2011
24. Foreign Insurance Excise Tax; 04/08
25. Golden Parachutes; 02/04/05
26. Hardwood Timber Industry; 12/2012
27. IC-DISC Audit Guide: 03/2012
28. Inland Waterways: 12/08
29. IRC 162(m) Salary Deduction Limitation: 02/04/05
30. IRC § 183: Activities Not Engaged in For Profit: 06/19/09
31. The Laundromat Industry: 6/00
32. Lawsuit Awards and Settlements: 01/11
33. Low-Income Housing Credit – Guide for Completing Form 8823: 08/2015
34. Ministers: 04/23/09
35. New Markets Tax Credit: 05/2010
36. New Vehicle Dealership Audit Technique: 1/05
37. Non-Qualified Deferred Compensation: 06/15
38. Obligations Not in Registered Form: 6/06
39. Obligations Not in Registered Form D: 06/2006
40. Oil and Gas Industry: 5/96
41. Ozone Depleting Chemicals (ODC) Excise Tax: 9/07
42. Partnerships: 3/08
43. Passive Activity: 02/05
44. Placer Mining: 7/99
45. The Port Project: 8/95
46. Real Estate Property Foreclosure and Cancellation of Debt: 2/15
47. Reforestation: 8/95
48. Rehabilitation Tax Credit: 12/02
49. Research Credit Claims: Credit for Increasing Research Activities §41: 5/08
50. Retail Industry: 2/09
51. Sections 48A and 48B – Advanced Coal and Gasification Project Credits: 5/09
52. Split Dollar Life Insurance: 3/05
53. Wine Industry: 05/2011

 

Simply put, it will be in the taxpayers’ best interest to thoroughly review these ATGs with their representative when the IRS decides to open an audit.

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170209-F-DB969-0012

Why You Shouldn’t Ignore Letters from the IRS

The consequences of ignoring any sort of communication from the Internal Revenue Service (IRS) can be severe. The notices typically require more information on your end and will specifically explain the issue and exactly what you need to do – don’t let them scare you out of responding.

 

You must first determine whether or not the notice is legitimate. IRS scammers are on the rise and you’ll want to identify them sooner rather than later. That being said, you don’t have to respond to everything! Some letters are sent to simply notify you of changes on your account or updates to your file. If you notice something wrong, then you should respond with information that the IRS can use to adjust the discrepancies. Otherwise, there is no need to send a response.

 

Letters from the IRS will have a number in the upper right hand corner for you to call if you have any questions or concerns. They provide a list of sample letter that are usually sent out and why they are sent – see here.

 

When there is a serious issue that the IRS is trying to inform you about, they will take more serious actions and you may end up owing money or spending time in jail if you are completely unresponsive. There may be a delay while you gather and sort the required information, but try to get everything out within 3-5 business days.

 

If you do respond and send additional information, be sure to note that correspondence in your records and store copies of everything. While you may be quick to reply, the IRS could take up to 30 days to get back to you … Be patient.

 

So what’s really going to happen if you keep shredding letters from the IRS instead of cooperating with their requests?

  • They may end up calculating your tax return for you and determining how much you owe and what you’ll get in return.
  • A tax revenue officer might pay you a visit to question your financial situation and understand if and when you’ll be able to pay them.
  • You can face criminal charge for tax evasion, which can lead to arrest or jail time if left unresolved.
  • Your wages could be garnished and money will be deducted from your paycheck before you get it just to pay off debt.
  • The IRS also has the power to seize your assets in order to repay the tax bill.

 

You’re better safe than sorry, so follow these tips and avoid any trouble with the IRS. As always you can contact IRS Audit Group if you have any questions!

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Rushing Through Your Taxes Increases Risk Of An IRS Audit

We get it, filing taxes is not something everyone loves to spend their time on. However, it is crucial to read and understand what is being asked of you, especially if you’re submitting your taxes electronically on your own time. It’s easy to fall into the trap of rushing just to get it done.

 

What if you work with a tax preparer? Well, the IRS can still audit you if you; fail to disclose all sources of income you may have, give the tax preparer insufficient information to complete your tax return to the fullest, or giving incomplete tax documents to the preparer. The IRS could care less if this was done accidentally or purposeful, which is why rushing will get you nowhere.

 

What are some reasons for a tax audit?

 

You leave out sources of income
This is the easiest way individuals can face a tax audit. This is very common in sole proprietors and independent contractors who also receive a 1099 form instead of a W-2. Many may not fully understand how much of a tax burden a 1099 form can cause. So, when a tax bill arrives that doesn’t look very appealing, it’s common to not disclose that information in order to keep 100% of your income tax free. That isn’t a smart move in this scenario. The IRS has systems that are created to catch these errors when the numbers don’t quite add up.

 

You use whole or rounded numbers
Rounding your numbers may seem ideal and makes the calculations a whole lot easier and less time consuming, but it also raises a red flag in the IRS system. Why? Seriously, what are the odds of having an even number on your net earnings, or deductions? Slim to none. While it usually never gets this far, you can possibly face criminal and civil charges providing inaccurate information. So it’s best to do the math right to avoid any consequences.

 

You file many deductions
Tax deductions are a good thing for many. It keeps you from paying taxes on certain expenses. However, deductions such as “home office deduction” raises a red flag due it being commonly misused by individuals. How will the IRS know if the deductions are legitimate? Well, they usually have a general idea due to your income level and other quantitative data they have gathered from similar filers. So, do not fall into the trap of thinking you can outsmart the IRS 100% of the time. It doesn’t happen that way for everyone.

 

How likely is that you’re going to get audited?
Lucky for you, while there’s still a chance of an audit, the chances are slim to none. Actually, 99% of the common persons’ taxes glides through the IRS system without being audited. As for the other 1%, of course they’re being audited. If you’re a millionaire, your chances of being audited are 1 in 10. And if you’re a white house official, your chances are 100%. It may not be every year like Donald Trump’s situation the past 12 years, but it will happen eventually to them.

 

As mentioned before, even though chances of an audit are slim for the average person, anything is possible. $1 spent on a tax audit, brings in $4. Do the math. Do you think the IRS is going to let everyone continue to slide by without an audit? Not for long because it makes them more money. And let’s face it, all the IRS wants is your tax payers’ dollars.

 

When filing your tax returns, make sure to take your time. The consequences outweigh the cost of telling the truth.

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