Regular Post
Written by Scott Allen

How to avoid an IRS audit in Arizona? IRS help from Tax Debt Advisors, Inc

 Avoid IRS Audit for Arizona Residents

  • Use a tax program.  Manually prepared returns are pieces of paper begging for attention.
  • Don’t believe all the advice that shows up on the internet and news shows during tax filing season.  Some of the advice I have heard would actually increase the likelihood of being audited.
  • Extend the filing of your return.  I have yet to have a client come in for an audit that filed a return right before the October 15th deadline.  Of course the return has to be filed correctly.
  • Report all income that the IRS knows about.  That would include all W-2’s, 1099’s and K-1’s—especially the ones that your thought were not going to be reported to the IRS.
  • Avoid the home office deduction.  I have literally had to charge some clients more for the preparation of this tax form than the benefit they were getting.  The home office deduction is rarely worth the tax savings and the risk of an audit.  If you have a home office deduction that amount to $1,000 and you are in a 15% tax bracket the savings is only $150.

But if you do get audited, get professional help.  It will pay for itself each year you file in the future and minimize your exposure for the year or years being audited.

Scott Allen E. A. – Tax Debt Advisors, Inc.

How to avoid an IRS audit in Arizona?  IRS help from Tax Debt Advisors, Inc

Mesa, Apache Junction, Avondale, Buckeye, Carefree, Cave Creek, Chandler, El Mirage, Fountain Hills, Gila Bend, Gilbert, Glendale, Goodyear, Komatke, Litchfield Park, Luke AFB, Paradise Valley, Peoria, Phoenix, Queen Creek, Scottsdale, Sun City, Sun Lakes, Surprise, Tempe, Tolleson, Waddell, Whitman, Wickenburg, Youngstown, Flagstaff, Tucson, Payson, Winslow, Sierra Vista, Page, Prescott, Globe, Yuma

 

IRS Problems, IRS Tax Audits, Tax Preparation, Unfiled Tax Returns
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Regular Post
Written by Scott Allen

Why am I being audited by the IRS in Arizona: IRS help from Tax Debt Advisors, Inc

Why am I being audited by the IRS

The most common reasons include:

  • If you are self employed and deal in cash such as restaurants, hair salons and contractors, you are in a high risk of audit situation.  The obvious reason—it is easy to put the money in your pocket and not report it on your return.
  • If you make large cash deposits into your bank account.
  • If you claim deductions that are almost as much as your reported income.
  • If you leave off of your return income that was reported to the IRS including     W-2’s, 1099”s, and K-1’s.
  • Unusually high charitable donations, especially those that are household items that are often overvalued.
  • Math errors on your tax return.  Using a computer program will avoid the math errors that go unnoticed on a paper return filled out and mailed in on April 14.
  • If you are using a tax preparer that the IRS has discovered was overstating deductions and generating large refunds.  In most cases, clients coming to us for this reason were actually aware of the practice but chose to ignore it believing that they would not be audited and that the IRS would not hold them accountable for all the interest and penalties and additional taxes if caught.

Use some common sense here and consider the agony that a bad audit will cause you financially and perhaps professionally and with your marriage.  This is probably the main reason why so many taxpayers are filing for innocent spouse protection.  One spouse, usually the husband is filing joint returns that if audited are going to result in large tax debts.  Bad returns are ticking time bombs.  The danger is that when the first one is not audited the taxpayer will becomes more bold and continue the practice in the following years and takes greater and greater risks until the IRS knocks on their door.

Scott Allen E. A. – Tax Debt Advisors, Inc.

Why am I being audited by the IRS in Arizona:  IRS help from Tax Debt Advisors, Inc

Mesa, Apache Junction, Avondale, Buckeye, Carefree, Cave Creek, Chandler, El Mirage, Fountain Hills, Gila Bend, Gilbert, Glendale, Goodyear, Komatke, Litchfield Park, Luke AFB, Paradise Valley, Peoria, Phoenix, Queen Creek, Scottsdale, Sun City, Sun Lakes, Surprise, Tempe, Tolleson, Waddell, Whitman, Wickenburg, Youngstown, Flagstaff, Tucson, Payson, Winslow, Sierra Vista, Page, Prescott, Globe, Yuma

 

IRS Appeals, IRS Problems, IRS Tax Audits, Tax Preparation
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Regular Post
Written by Scott Allen

I was audited by the IRS in Arizona months ago and have not heard from them. IRS help from Tax Debt Advisors, Inc

Audited by IRS in Arizona

I was audited by the IRS months ago and have not heard from them.  What should I do? 

  • The longer it takes the IRS to get back to you the more likely your audit assessment slipped through the cracks.  Often IRS personnel are reassigned to other duties and their case load is dropped by the person reassigned to handle your case.
  • However, sometimes just when you think you are safe the audit assessment will show up and when this happens it is almost always much worst that what you expected.  Why?  The lazy auditor has lost the paperwork and when their manager jumps on them to finalize the audit; they disallow everything that was presented just to close the audit.  If this has happened to you call me right now—there is a silver lining waiting for you when I take this case to Appeals.
  • If your audit is not completed, I suggest that you not file your next return until you are certain that the audit has been closed out.  I would not go beyond the extension period of six months however as that alone may trigger a new audit.  This is a judgment call that you should get professional advice.
  • If you know that the auditor is just sitting on your case, it is best to make a call to the manager to get the audit completed.  Sometimes this will cause the auditor to accept the grey areas of the audit as a matter of expediting the audit and moving on to other cases.

Take audits very seriously.  Use a professional in most cases.  An error in judgment on your part may cause the Auditor to open up other tax years for an audit.

Scott Allen E. A. – Tax Debt Advisors, Inc.

I was audited by the IRS in Arizona months ago and have not heard from them.  IRS help from Tax Debt Advisors, Inc

Mesa, Apache Junction, Avondale, Buckeye, Carefree, Cave Creek, Chandler, El Mirage, Fountain Hills, Gila Bend, Gilbert, Glendale, Goodyear, Komatke, Litchfield Park, Luke AFB, Paradise Valley, Peoria, Phoenix, Queen Creek, Scottsdale, Sun City, Sun Lakes, Surprise, Tempe, Tolleson, Waddell, Whitman, Wickenburg, Youngstown, Flagstaff, Tucson, Payson, Winslow, Sierra Vista, Page, Prescott, Globe, Yuma

 

IRS Appeals, IRS Problems, IRS Tax Attorney, IRS Tax Audits
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Regular Post
Written by Scott Allen

IRS tax audit strategies in Arizona. IRS help from Tax Debt Advisors, Inc

 Arizona IRS Tax Audit Strategies

  • Avoid having the audit at your home.  We suggest to our clients to have the audit conducted at our office.
  • After consulting with a professional make the decision to extend the audit or not.  If an extension is requested before the dead line and you have reasonable cause, it is not a mark against you.  However, to miss an appointment that you previously extended will be a large a “red flag” as you can find.
  • Be cordial during the audit but not overly friendly.  Leave the talking to your advisor unless specifically questioned directly by the auditor.  When you answer the question do it in the fewest words that conveys the correct answer.  Look the auditor in the eyes and if you need some time before answering the question—take the time.  If you know you don’t know the answer, tell the auditor you don’t know, write down the question and ask the auditor when you can get back with the answer.
  • Allow for disagreements.  You will eventually get what you expect if you never get mad or angry.  An angry taxpayer is usually wrong.  If you cannot handle your emotions, let your representative do the talking.  Auditors know that they are creating a stressful situation and their training teaches them how to benefit from that stress taxpayers feel.
  • If you are a sole proprietor filing a schedule C on your return we recommend that you put your business in an LLC and then get IRS approval to have your LLC taxed as a Subchapter S Corporation.  I can discuss with you the tax benefits as well as the audit benefits during a consultation at my office.

Scott Allen E. A. – Tax Debt Advisors, Inc.

IRS tax audit strategies in Arizona.  IRS help from Tax Debt Advisors, Inc

Mesa, Apache Junction, Avondale, Buckeye, Carefree, Cave Creek, Chandler, El Mirage, Fountain Hills, Gila Bend, Gilbert, Glendale, Goodyear, Komatke, Litchfield Park, Luke AFB, Paradise Valley, Peoria, Phoenix, Queen Creek, Scottsdale, Sun City, Sun Lakes, Surprise, Tempe, Tolleson, Waddell, Whitman, Wickenburg, Youngstown, Flagstaff, Tucson, Payson, Winslow, Sierra Vista, Page, Prescott, Globe, Yuma

 

IRS help by state, IRS Problems, IRS Tax Audits, IRS Wage Garnishment
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