Tax News

TIPS FOR IRS AUDITS

We are seeing an increase in IRS audits in 2012 through 2009 returns. Restaurants are being audited. Individuals with schedule Cs are being audited for travel, automobile, meals and entertainment.

• If you’re audited, never represent yourself. We’ve represented two tax attorneys in the past! Taxpayers talk too much and give the IRS too much information. We’ve been retained by 3 new clients this week alone. Each will be represented by one of two MBAs in tax.
• Be respectful. The IRS will not go away. If the notice says reply in 10 days, reply in 10 days.
• Hire a representative that knows the rules but is there to win for you.
• NEVER GIVE UP ON THE NEGOTIATION. If the IRS is correct and there is no documentation for certain deductions or if income is not reported, and if they find it, remember you can always try to set up a payment plan.
• If there is an IRS audit adjustment remember to amend the state return immediately.
• Be optimistic. Get some sleep. We can’t guarantee anything but the last two audits we just closed, the taxpayers got refunds.