Tax Audit Services
Tax Audit Services in Dayton,Ohio by Essex and Associates
"As one of the top tax audit services in Dayton,Ohio Essex and Associates knows that at some point in time, most taxpayers will recieve a letter from a local , state or federal entity" says, Brad Stepthenson of Essex and Associates.
The IRS alone sends out over one million letters per year requesting information from tax payers. So it is not if you get audited, it is when you get audited.
Getting audited can be a stressful time for anyone. However, taking advantage of trained and experienced tax professionals can make the process much more bearable and less expensive.
Our firm offers a 24 step process in resolving tax audit issues. It is a proprietary format that affords us great success in tax audits.
In the event of a tax audit, we represent taxpayers before the Internal Revenue Service, state and local taxing authorities
If you are faced with IRS audit or state/local tax audit, it is always in your interest to have a qualified tax professional to represent your interests.
There are many reasons that an individual or a business may get audited. The most common reason is that the information reported to the IRS, by third parties, does not match the information on a
When this scenario develops, many times good communication to the appropriate taxing authority is all that is required. And if this is the case for you, our firm will do this at absolutely no charge.
Another common cause of audit is that your deductions are not in line for your income level.
The IRS applies a sophisticated formula determining whether your deductions are much higher than a person in your income bracket.
When you receive a high score in this area, your return is pulled for review. An IRS agent then decides if the audit should go forward.
It is interesting to note, according to the IRS, the returns that are audited most frequently are the ones that are self-prepared.
A self-prepared return, without the use of a tax professional, has the
opportunity to have the most mistakes.
Using off- the- shelf tax preparation software is not always advisable.
Unfortunately, with these unsophisticated programs, you can plug a number into the wrong place, generating an audit.
Using a professionally trained preparer is not a cost but an investment
in reducing your audit risk.
More importantly, a professionally trained tax preparer will find legitimate
deductions for you that you may have missed.
The tax audit process, if you are contesting their findings, it will take months or even years to resolve.
It is not a road you want to go down alone.
The IRS can be intimidating and many times will take advantage
of the fact that the taxpayer does not know tax code.
Our firm not only handles individual and business federal, state and local tax audits but we also assist in the following areas:
Payroll Tax Audits – Quarterly and yearly reports are required. Many times if the numbers do not match or the filings are late.
Therefore, an audit will be generated.
Independent Contractor Audits -The decision to classify workers as employees or independent contractors can have huge tax consequences.
Classification done right is essential in avoiding potential large tax bills.
However, if you made a wrong classicication, we can help resolve your situtation.
Trust Fund Recovery Penalty Defenses – The IRS takes collection of employment taxes very seriously because the employer actually holds the employee’s money in trust until the employer makes a federal
tax deposit in that amount.
If the proper tax is not paid, the IRS can assess a 100% penalty on those who were responsible to pay over the employment taxes.
The responsible party, even if not an owner, can be subject to this penalty.
If you find yourself in this situation, you need to consult with an experienced tax professional to protect your rights.
Sales Tax Audits – Number of issues can arise that can lead to sales tax audits.
Passive Losses – The IRS may disallow certain losses as passive losses to offset your ordinary income.
If the IRS has claimed that your business is a passive venture and increases your tax liability, you need to consult with a tax professional to assist you.
An audit usually begins with a letter from a local IRS agent. The agent will request an interview, either at the IRS office, or in many times they will want to come on site.
Afer the interview and some requests for additional information a report will be generated. This report will then access additional tax liability or they will close the case with no addition tax accessed.
As you might expect, most time the tax payer has an additional tax liability. At this point in time the tax payer has two options.
Request a different auditor.
Another auditor will go through the same process and Request a supervisor review the information.
Obviously, the IRS supervisor will side with the auditor.
If you are still not satisfied with the results then there are two additional options:
Administrative Appeals – Taxpayers have important rights and a number of administrative appeal processes are available when dealing with the IRS and/or state tax authorities.
You can dispute the examination findings and file a Protest to take the case to the IRS’s Appeals Office.
U.S. Tax Court Representation – If you disagree with any additional assessment as a result of the examination of your tax return, we can file a petition with the U.S. Tax Court to dispute the assessment after you receive your 90 day letter (Notice of Deficiency).
A tax audit by the time you work through the various options will be a long drawn out process. This process is worrisome and time consuming.
You do not want to go it alone.
What to Do if You Receive a Notification for an IRS Audit
Showing up prepared and organized for an audit gives you an advantage from the minute the agent walks in. The better your documentation and the easier it is to sort, the sooner the agent will be able to finish your audit and move on.
You may even emerge from with the ultimate prize: a letter stating that no change is necessary to your tax payment. That is a piece of IRS mail any tax payer would be happy to get.
It is the ultimate nightmare scenario for many tax payers: a letter from the Internal Revenue Service informing them they are being audited.
It is highly unlikely you will be subjected to a tax audit this year.
But if you are, it does not have to be a traumatic experience if you have the right preparation and expectations.
Here is what you need to know:
1. DO not Panic:
Make sure your being audited. The IRS document-matching computer system searches for discrepancies in tax returns and generates letters to taxpayers whose documentation is inconsistent.
Receiving one of those written requests for clarification does not mean you are being audited. Provide what the IRS asks for, and you will probably never even talk to an agent.
2. DO provide what the IRS asks for — and no more:
Before your scheduled appointment with the IRS agent, you will get a written request for certain documents.
3. DO not assume you have done anything wrong:
The IRS occasionally does compliance audits for particular industries, looking for patterns of misrepresentation. Such audits can be time-consuming and drag on for several months.
But companies in those industries are mostly chosen at random. Being picked does not mean the IRS has concerns about your business in particular.
4. DO make sure you are properly represented:
Why do the vast majority of criminal defendants choose not to represent themselves in court?
Because they know their interests will be better served by a lawyer who understands the language and rituals of the justice system. The same goes for an IRS audit.
You have the right to request that your accountant be present during the audit, and your can authorize him or her to speak for you.
5. DO get organized:
Many problems with tax returns come down to simple disorganization. Maybe you forgot to submit the correct backup documents, or kept only haphazard records of your expenses.
If you have received letter from a local , state or federal entity or just want to discuss your audit options, call the tax audit service Dayton,Ohio and the Miami Valley turns to for all their tax audit needs, Essex and Associates.