THE TYPES OF IRS AUDITS
Types of IRS Audits If you are selected for an IRS audit, what should you expect? There are several types of IRS audits, of which the main types will be briefly discussed below. Correspondence Audits A correspondence audit is an audit that the IRS conducts via correspondence. The IRS will begin the audit by mailing... Read More
WHAT IS AN IRS SUBSTITUTE FOR RETURN?
What will the IRS do if I don’t File my Tax Returns? If you don’t file your tax returns, the IRS could file a tax return for you. This is called an IRS substitute for return, or SFR. The IRS typically has three years from the date of filing to examine your return and assess... Read More
HOW DOES IRS AUTOMATED COLLECTION SYSTEM COLLECT A TAX LIABILITY?
What is the IRS Automated Collection System? If you have a tax liability, you have rights and must be vigilant to protect those rights. Moreover, the IRS will be aggressive in its collection efforts, so you must be just as aggressive in protecting yourself. The IRS has an awful lot of power and sometimes can... Read More
WHAT PENALTIES COULD BE ASSESSED AGAINST ME IN AN EDD AUDIT?
Can the EDD assess a Penalty from an Audit? The EDD can assess some penalties that can be relatively high compared to the tax liability. Consequently, taxpayers often ask their tax attorney what types of penalties could be assessed against them in an EDD audit. However, the good news is that a tax attorney can... Read More
How Do I appeal and EDD Audit?
Appealing an EDD Audit If the EDD issues an audit assessment, you will receive information about your appeal rights. Taxpayers often ask their tax attorney, how can I appeal an EDD audit? You may draft a petition for reassessment with an independent third party, the California Unemployment Insurance Appeals Board, for a hearing before an... Read More
DO I HAVE AN FBAR FILING REQUIREMENT?
Many people unknowingly have an FBAR filing requirement. If you are a US taxpayer with signature authority over a foreign bank account or other financial asset with a value of over $10,000, you likely have an FBAR filing requirement. FBAR refers to FinCen form 114. What is the FBAR? The FBAR is a form that... Read More
The New IRS Email Scam Coming to Your Inbox
By LAURA SAUNDERS Sept. 29, 2016 6:00 a.m. ET Americans, beware: the Internal Revenue Service isn’t emailing you. Just recently, a new scam has started involving fake tax bills tied to the Affordable Care Act. In one sure sign the notices are fake, many are arriving by email – and the IRS doesn’t initiate taxpayer contact... Read More
THE STRUCTURE OF THE IRS
The IRS is part of the Treasury Department and is headed by the Commissioner of the Internal Revenue Service. The IRS is organized by operating divisions. There are four major operating divisions. Wage and Investment Income Division Wage and Investment Income Division (W&I): W&I covers individual taxpayers, including those who file jointly, who receive wage... Read More
HOW CAN I PREPARE FOR AN IRS, EDD, SALES TAX, OR FTB AUDIT?
How can I prepare for an IRS, EDD, Sales Tax or FTB audit? If you are selected for an IRS audit or EDD audit, it is easy to feel overwhelmed and underprepared. This tax blog post will help you understand the process and prepare for a successful outcome. Therefore, organizing the records you bring or... Read More
EDD PERSONAL ASSESSMENT
What happens if my business has an EDD liability? The EDD collects payroll taxes. If a business has not paid its payroll taxes, an EDD assessment will try to collect the taxes. The EDD collects taxes either in a lump sum or via a monthly installment agreement. Moreover, if you need an installment agreement, the... Read More