On: December 5, 2022

Tax Audit Defense Experienced Tax Experts Pasadena

 

Few things that you receive in the mail cause more aggravation than notice of a tax audit.

Nobody wants the government to review their personal or business records with a tax audit.  Even worse, nobody wants the government to assess them for additional tax, interest, and penalty liabilities based on a tax audit.

However, all is not lost if you receive notice of a tax audit.  You can take action to defend against a tax audit.

If you are in Pasadena and are the subject of a tax audit, you need to retain an experienced tax expert in Pasadena who has significant knowledge about tax audit defense.

Tax Audit Process – Internal Revenue Service

 

One source of tax audits is the Internal Revenue Service (“IRS”) concerning Federal tax liabilities.

IRS tax audits generally arise in two ways.

First, some tax returns are randomly selected for audit by computer screening based on a statistical formula.  The IRS will compare your tax return against “norms” for similar tax returns.

Second, some tax returns are selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit.

IRS tax audits can be conducted by mail or through an in-person interview to review your records.  The interview may be at an IRS office (office audit) or at the taxpayer’s home, place of business, or representative’s office (field audit).

The IRS generally can include tax returns filed within the last three years in a tax audit.  If the IRS discovers a substantial error, it can include additional years in the audit, although the IRS usually will not go back more than the last six years.

For a tax audit, the IRS will provide you with a written request for the documents it wishes to review.  These documents commonly include:

• Receipts;
• Bills;
• Cancelled checks;
• Legal documents;
• Loan agreements;
• Logs or diaries;
• Tickets;
• Medical and dental records;
• Theft or loss documents;
• Employment documents; and
• Schedules K-1 (including from S corporation, limited liability company, or partnership tax returns).

The IRS may also want you to complete a questionnaire.

An auditor will review your tax returns and records in the IRS tax audit.

An IRS tax audit can be concluded in one of three ways:

• No change – You have satisfied the IRS and no changes are being made to what you reported on your tax return;
• Agreed – The IRS has proposed changes to your tax return and you agree with them; or
• Disagreed – The IRS has proposed changes to your tax return and you disagree with them.

In the case of a disagreed IRS tax audit, you can request a conference with an IRS manager.  You also can seek to resolve the case through mediation or can file an appeal.

 

State and Local Tax Audits

 

A second source of tax audits is the applicable state or local tax authority concerning state or local tax liabilities.

For example, in California, tax audits can be commenced by:

• The California Franchise Tax Board, which conducts tax audits concerning California state income taxes. California Franchise Tax Board audits generally can include four years of tax returns;
• The California Employment Development Department, which conducts tax audits concerning California state payroll taxes. California Employment Development Department audits generally cover a three-year statutory period, comprising the 12 most recently completed calendar quarters; or
• The California Board of Equalization, which conducts tax audits concerning California state sales and use, property, and other special taxes. California Board of Equalization audits generally cover three-year intervals.

 

Best Practices for Tax Audit Defense – Take Action and Retain a Tax Audit Defense Experienced Tax Expert

 

If you receive notice of a tax audit, your reaction should not be to cower in fear.  Putting “your head in the sand” and ignoring the tax audit notice can only create problems that may not exist or exacerbate whatever tax issues you already have.

Thus, it is critical that you take action in response to a tax audit.

Tax audits are complex matters.  The average taxpayer is not familiar with tax audits and how they are conducted.  Making a mistake during a tax audit, by delivering the wrong document or answering a question improperly, can easily expose you to unnecessary tax liabilities and other adverse consequences.

Thus, it is also critical that you retain a tax audit defense experienced tax expert to help you during the tax audit process.

The key is that you not hire any tax expert, but rather specifically a tax audit defense experienced tax expert – a tax expert who has significant experience and knowledge about tax audit defense.

In terms of experience, it should be successful experience.  You want your tax audit defense experienced tax expert to have helped clients regularly achieve favorable outcomes in prior tax audits.

In terms of knowledge, it should be current and comprehensive knowledge.  First, as tax laws and audit procedures are constantly changing, you want your tax audit defense experienced tax expert to be aware of current laws and procedures.  Second, you want your tax audit defense experienced tax expert’s knowledge to be comprehensive – covering both Federal and applicable state and local laws and procedures.

How can a tax audit defense experienced tax expert specifically help you in your tax audit matter?  Your tax audit defense experienced tax expert can:

• Review your case and determine its strengths and weaknesses based on applicable law;
• Assess what records you should deliver and what records you should not deliver;
• Help you complete any questionnaire and otherwise answer questions;
• Develop a positive rapport with the person auditing you;
• Negotiate in a successful manner with the person auditing you;
• Determine if you should accept any proposed changes to your return, including analyzing the potential consequences if you do not accept the proposed changes (such as interest liability, penalty liability, collection action, or criminal prosecution);
• If you accept the proposed changes, assist you with your payment options for any resulting liabilities, including consideration of an installment agreement or an offer in compromise; and
• If you do not accept the proposed changes, draft and file an appeal.

These various tasks all will be better handled by a knowledgeable tax audit defense experienced tax expert than by you alone or by any other person.

Leading Tax Group – The Best Tax Audit Defense Experienced Tax Experts in Pasadena

If you are in Pasadena and facing a tax audit, you need the services of the tax audit defense experienced tax experts at Leading Tax Group (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!).

Leading Tax Group has had many cases where it was able to achieve “no change” audits or other successful results in tax audits for its clients.  In addition, Leading Tax Group has both current and comprehensive (Federal, state (especially California), and local) knowledge of tax laws and tax audit procedures.

With this successful experience and current and comprehensive knowledge, Leading Tax Group has the best tax audit defense experienced tax experts (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!) in Pasadena to enable you to realize a favorable result in your IRS, state, or local tax audit.

Just as Aaron Donald and Jalen Ramsey helped the Los Angeles Rams build a “Super Bowl-winning” defense, you can build a “tax audit-winning” defense by hiring Leading Tax Group.

Leading Tax Group has a conveniently accessible office in Pasadena at 225 S Lake Avenue, 3rd Floor.

If you receive notice of a tax audit, you need to retain as soon as possible the services of the aggressive tax audit defense experienced tax experts from Leading Tax Group (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!)

For the best tax audit defense experienced tax experts (their experienced team consists of a former IRS tax attorney, an experienced payroll tax and sales tax attorney, a retired IRS auditor (of 40+ years), and their own in-house accounting team!) in Pasadena, contact Leading Tax Group now at (800) 900-4250 and schedule your free consultation today!