REPRESENTATION IN IRS AUDITS
If you are being audited by the IRS, unless you deal with them regularly, consider hiring a professional in Orange County for Representation in IRS audits.
WHY AM I BEING AUDITED?
Statistically, your odds of being audited as an individual are slim to none. So, if you get an official letter, be sure to take it very seriously. Keep in mind, they will never send an email or telephone you as the first for of correspondence. Be careful about those scams. If you think it is a scam you can call us or the Treasury Inspector General for Tax Administration at (800) 366-4484 or go on the web at www.tigta.gov.
The best thing to do is to ensure all your accounting and bookkeeping for yourself and your business are perfectly recorded and submitted, and all the necessary taxes and fees are paid. It is easier to get a refund than it is to owe money and pay extra fees and fines.
You drew the short straw. You may have been selected at random. You’ll need to hire a professional CPA to ensure all your finances are in order anyway. Just because you were selected at random, doesn’t mean you have nothing to worry about. You may have done something wrong either intentionally or unintentionally. Call us anyway.
“I Haven’t Done Anything Wrong!”
Then you have nothing to worry about! Sometimes these audits are completely random. You may have just been selected automatically by a machine and not by anything you may or may not have done illegally. Just make sure you have as much records as you can dating back at least 7 years when you meet with me, and ask questions about any and all things that you may think have absolutely anything to do with the reason for your audit.
YOU MAY NOT KNOW YOU DID SOMETHING WRONG
There are many red flags on your tax return that may make the IRS look a little more closely at your income. For example, if you are an entrepreneur with a legitimate home office, you are entitled to claim that office as part of your deduction. It is important to know, however, what a home office is.
If you do work at your dining room table, that table, beside your kitchen appliances, that will not qualify as a home office. Likewise, with a desk in your living room. Your home office needs to be for an area specifically used for your business only. It is best that if it has its own door, but not necessary if you keep it separate from the rest of your furniture.
There are also little things that they’ll want to put under a microscope. Together, we are ready and will do our best to clear up all misunderstandings together.
SOMEONE REPORTED YOU
If you’ve done something wrong, you need to call us right away! You need a professional who knows the IRS and has worked with them for over 35 years. We even have an ex-IRS agent on-staff to ensure that we hit all the points we need to, to keep you out of as much trouble as possible. Our professional from the inside had been with the IRS for over 30 years, so he knows quite a few trick hands they’ll try to play.
YOU’VE DONE BUSINESS WITH SOMEONE WHO HAS BEEN AUDITED
You may or may not know of what they have done illegally—intentionally or unintentionally. Regardless, the IRS likes to get into every nook and cranny of their case, and that may mean all their business with you. You may have dealt with them as much as being a business partner with them, either actively or silent. Or, you may have just bought a box of pens from them. Sometimes, you never really know who you’re doing business with.
I KNOW I’VE DONE SOMETHING WRONG!
You’ll need to come in and see us. Each case varies and can be vastly different from one situation to another. Sometimes you can just pay the fee and pay the fine, other times we may need to explore what else they want from you and what your options are. You can pay after the audit and contest later.
Hiring a professional accountant ensures that all your finances are in order in the first place. There are no such things as loopholes, but there may be laws and regulations that are in place that can help you. Most of the time, it isn’t something the average person may know about.
With over 35 years’ experience, I have seen what can and can’t be done to help your case in the best way possible.
HOW DOES THE PROCESS WORK?
The first part of the process is for you to contact Wynkoop & Associates. We will confirm, with the IRS, that we are in receipt of their correspondence, see what they want to investigate and establish a plan of attack with you. We are always courtesy with the field agent and try to resolve difference with the agent rather than going to court, which is very expensive. To your benefit, we do not have the same emotions that you may be experiencing. That allow us, with our years of auditing experience, to creatively show the agent what backs up the calculations used in the preparation of your tax return.
WHAT CAN YOU DO TO HELP ME?
Don’t panic. Just take notes and provide us with all of the detail we request in an easy to understand format. We will help you in formatting the information.
CAN I GO TO PRISON?
Not for small mistakes or adjustment. You would have to be proven guilty of major tax evasion or tax fraud.
WHAT ARE THE POSSIBLE OUTCOMES OF THE AUDIT?
The best case scenario is there is no adjustment made by the IRS. This happens often. If there is an adjustment, you tax liability is increased and you will be billed for additional taxes, penalty and interest. Some audits result in a refund to the tax payer.
I CAN’T AFFORD THE PAYMENT!
If you cannot afford to pay a balance due, the IRS may be willing to set up a payment plan. Every case is different and it is important to have an experienced professional review your case.
You may also request additional time to file your taxes. The IRS may grant you 60-150 days in some circumstances. You may be granted an extension to file, but not an extension to pay what you owe. You will only be given 6 months to get your finances in order and pay everything you owe. The down side is that the extension also extends the statute of limitations.
The IRS accepts both credit and debit cards for taxes owed. The good news is the IRS does not charge a few for this but your credit card company may. Check with your credit card company to see if they charge and how much they charge for a convenience fee, or for a flat rate fee.
Yes, you can negotiate with IRS. If you qualify, you can apply for an Offer in Compromise. They’re more willing to take what they can get rather than wait on a maybe, maybe not get paid at all. Make sure you get ahead of the problem quickly. This can be an option for you if you request it right away.
SET AN APPOINTMENT NOW
We will provide you with a customized accounting and taxation services that are necessary to your business. Wynkoop & Associates CPA prides itself on the best accounting and tax experts that will help you realize your business’ potential.