Tax audits, investigations & appeals

Taxevo, represents his clients with substantial experience who are facing an audit of their business, Payroll & sales tax  by the IRS or state taxing authorities. In an audit, the government is represented by a team of well-trained specialists, including audit examiners, accountants and attorneys. If your tax return is selected for examination, you need to level the playing field.

IRS audit rates are rising dramatically for all types of taxpayers. Within the past few years, the IRS audit rate for individual taxpayers has risen more than 30%; for high-income taxpayers, it has doubled. The IRS & states are currently in the process of randomly selecting corporation and sales tax returns, seeking information that will help tighten its grip on small business taxpayers in the years to come. It is not a time to be taking chances.

IRS audits generally fall into one of the following three categories:

• Desk Audits
• Client office Audits

Typically, the audit process begins when you receive a letter stating that your tax return has been selected for an examination. This does not mean that the Government is accusing you of lying, cheating on your tax return or engaging in any other wrongdoing. Rather, the goal of the IRS audit process is to increase overall tax compliance and revenue collected by the government, often by making examples.

The moment you receive notice of an examination is the right moment to call us.

To ensure proper representation during your IRS or State audits, contact us at arun@aruncpa.com.

Unpaid over due payroll taxes, corporation tax, sales tax and their settlement with  payment plans.

Employment & Sales Tax Problems

At Taxevo, we have substantial experience representing employers, and their officers and owners, in payroll and sales tax cases.

When representing you, we work diligently to develop a tax debt solution designed to protect your business and your personal assets. This could include the negotiation of a payment plan with the IRS, an offer-in-compromise, a voluntary settlement under the voluntary classification settlement program (VCSP) or another comprehensive solution that meets your goals. Our firm is also experienced in defending business entities against forcible collection action initiated by IRS & state collection agents as well as other related payroll & sales tax problems.

What Are Trust Fund Taxes?

The Internal Revenue Code requires every employer to withhold Social Security taxes, Medicare taxes and income taxes from the wages of its employees — commonly referred to as “payroll taxes” or “employment taxes.” The combination of payroll taxes actually withheld from an employee’s wages and the income taxes withheld from an employee’s wages are collectively referred to as “withholding taxes” or “trust fund taxes.” The term “trust fund taxes” is used because these taxes are theoretically held in trust by the employer until paid over to the IRS as described below.

Employers’ Obligations Regarding Payroll Taxes

Under the Internal Revenue Code, an employer is required to collect, account for and pay trust fund taxes. These amounts are to be deposited in a qualified bank or financial institution for transfer to the IRS.

Along with the payment of these taxes, the employer is required to file an employer’s quarterly federal tax return, commonly referred to as a “941 Return,” and an employer’s annual federal unemployment tax return, commonly referred to as a “940 Return.” The same tax return filing requirements apply to all active employers, whether operating as a corporation, limited liability company, partnership or sole proprietorship.

Failure to Withhold And Pay Employment Taxes

The IRS considers the failure to properly withhold and pay these taxes a serious violation of the internal revenue code. If a business fails to pay its withholding and payroll tax obligations in a timely manner, the IRS is authorized to forcibly collect the tax due, plus substantial penalties and accrued interest.

The IRS employs revenue officers who specialize in the collection of these liabilities. These revenue officers aggressively pursue collection of unpaid payroll taxes from the business — and often from the company’s officers, directors, owners and other responsible individuals.

On the business level, if the revenue officer is unable to collect the delinquent payroll tax, the revenue officer will often seek to close the business and liquidate its assets. In certain cases, the IRS will criminally prosecute responsible individuals who willfully fail to file payroll tax returns or pay the payroll tax liabilities of an employer. The IRS employs specialized teams to achieve these results — you need someone to level the playing field.

Let Us Be Your Strong Advocates

Taxevo, will work tirelessly to keep your business operating and to solve your payroll tax liability. We will help you understand your payroll tax obligations, help you solve your existing problem, and help you meet your future payroll tax reporting and payment requirements so that you need never fear a call from the IRS again.

Get expert Help From Experienced Tax Professionals

For help solving your IRS payroll tax issues, contact us at 810-982-9991

Removal of IRS levies & Seizers

Are tax problems keeping you awake at night? Are you afraid you could lose your home, business or other assets because IRS has issued warrants, put levies & threaten to seize the your business assets? In the eyes of the IRS, these aren’t valid reasons for failing to file your taxes.
Taxevo will work tirelessly to keep your business operating by offering in compromise and break the payments in payment plan from 36 month to 60 months based on individual cases.

Get expert Help from Experienced Tax Professionals

For help solving your IRS payroll tax issues, Contact Us, at arun@aruncpa.com

Non Filed corporation tax returns

Unfiled Tax Returns

Delinquent returns are often more closely examined and scrutinized by the IRS, requiring that much more care and accuracy to avoid audits. But only an experienced attorney can provide the expertise needed alongside the protection of the attorney-client privilege — a vital asset if you feel that you’re at risk for prosecution. Delinquent taxes, if handled in the wrong way, drastically increase the chance of criminal prosecution or enforced collection activity.

Severe Consequences for Non-Filers

The IRS estimates that approximately 10 million taxpayers fail to file their federal income tax returns each year, which results in large amounts of back taxes and fees. The reasons vary: some taxpayers simply procrastinate; others don’t understand their filing requirement. In a few cases, taxpayers willfully fail to file in an attempt to evade their responsibility to report their income and pay their tax liability. Regardless of the reason, the IRS identifies all of these taxpayers as “non-filers.”
In most instances, the problems faced by non-filers can be resolved successfully if the taxpayer obtains experienced legal counsel and voluntarily addresses the problem. On the other hand, continuing failure to voluntarily comply with tax return filing requirements can result in severe consequences. In some cases, a non-filer may even suffer criminal tax prosecution.

Identifying Non-Filers

For many years, the IRS lacked the budget and the ability to identify and find habitual non-filers. However, the IRS has substantially increased its budget for technology that will enable it to find and pursue taxpayers who fail to regularly file their returns. As a result, the IRS has targeted the problem of non-filers as one of its highest priorities.

The IRS develops and continues to improve sophisticated computer matching and software programs that identify and locate these taxpayers. Those capabilities are constantly being improved to enable the agency to match third-party income and expense information returns with taxpayers. If you have not filed all required tax returns, and have not yet been discovered by the IRS, it is only a matter of time.

Willful failure to file a tax return is a misdemeanor carrying a maximum sentence of one year in prison for each tax year. Worse yet, tax evasion is a felony carrying a maximum sentence of five years in prison for each tax year. Do not risk criminal tax prosecution. Obtaining voluntary compliance with your income tax return filing obligations will spare your enormous personal and financial costs in the future.

Voluntary ComplianceIn many cases, if a taxpayer seeks to correct the problem before an IRS investigation or examination, it is possible to use the IRS’s “voluntary disclosure” policy to file missing returns and avoid prosecution. The taxpayer must be careful to file returns that are accurate and truthful. If the IRS determines that late-filed returns are false, the chances of criminal prosecution increase tremendously.The IRS’s voluntary disclosure policy applies to a taxpayer who:
Voluntarily informs the IRS of his failure to file for one or more years

• Had income from only legal sources
• Makes the disclosure prior to being informed that he is under criminal investigation
• Files a correct tax return or cooperates with the IRS in ascertaining his correct tax liability
• Makes full payment of the amount due, or if unable to do so, makes bona fide arrangements to pay

Enforced Compliance

Once the IRS identifies and locates a non-filer, the agency begins to send a series of notices requesting that delinquent returns be filed. Usually, the IRS will send a series of four computer-generated notices (often referred to as “CP Notices”) to the taxpayer prior to initiating personal visits or telephone contact. Individual taxpayers receive these CP Notices over a 26-week period while business taxpayers normally receive at least three notices during a 22-week period. If the taxpayer fails or refuses to respond to the computerized notices, the IRS uses a variety of methods to force compliance. The IRS may even prepare its own tax return for the taxpayer based on third-party documents and information returns filed with the agency. It may also attempt to contact the taxpayer by telephone or assign the case to a revenue officer for field investigation.

If only telephone contact is warranted, the case will be assigned to the Automated Collection System (ACS). Once contacted by ACS personnel, the taxpayer will be asked to file his or her delinquent returns. ACS employees may also contact neighbors, employers and others in an attempt to secure information about the taxpayer’s potential tax liability. Once the IRS secures adequate information about a non-filer’s income and the taxpayer fails to voluntarily file a return, the IRS will often prepare its own substitute for return on behalf of the taxpayer.

Substitute for Returns

Substitute for Returns (SFRs) are prepared and filed pursuant to authority granted the Internal Revenue Service by IRC §6020(b). In order to conserve manpower and financial resources, the IRS will use a variety of information sources to automatically handle cases meeting the following criteria:

1. The taxpayer is not self-employed.
2. The taxpayer’s total income is less than $100,000
3. The income shown in the IRS’s databases totals more than 75 percent of adjusted gross income and total positive income on the taxpayer’s last filed return
4. The tax year is no older than six years prior to the current tax year
5. There is no current or pending “uncollectible status” on the account
6. The taxpayer’s address has been verified

If any of these conditions are not met, the matter will be sent to a revenue officer to review and obtain pertinent information prior to the creation of an SFR.

Criminal Non-Filing

If the IRS discovers a habitual non-filer before voluntary disclosure, either through its own non-filer programs or through an informant, the IRS will often refer the matter to its criminal investigation division (CID) to determine if criminal prosecution is warranted.  Most often, the CID targets “high-impact” individuals, taxpayers who habitually file “non-process able returns” and “tax protestors” for criminal prosecution. IRS special agents assigned to the CID also evaluate the information obtained in their investigation to identify certain activities, called “Badges of Fraud,” that may indicate criminal tax fraud.

Get expert Help from Experienced Tax Professionals

For help solving your IRS payroll tax issues, Contact Us, at arun@aruncpa.com

Obtain a copy of your IRS file

Did you know that you can obtain a copy of your IRS file? Most people would be surprised to learn how much the IRS knows about them. Obtaining a copy of your IRS file is critical in analyzing the options available to resolve your tax problems.

Requesting copies of your IRS file is best done by a professional who understands how to obtain them without raising any red flags as well as how to interpret the information in your file.

We can help you obtain a copy of your IRS file and analyze your options. Please complete the form on the bottom of this page to get a Free Consultation with our tax specialist.

For help solving your IRS payroll tax issues, Contact Us at arun@aruncpa.com

Offshore Bank accounts

Foreign Bank Accounts (FBAR)

Delinquent FBAR Submission Requirements

If you don’t need to use either the offshore voluntary disclosure program (OVDP) or the Streamlined Filing Compliance Procedures, you should file your delinquent FBARs only if you:

• have not filed a required Report of Foreign Bank and Financial Accounts (FBAR) (FinCEN Form 114, previously Form TD F 90-22.1)
• are not under a civil examination or a criminal investigation by the IRS
• have not already been contacted by the IRS about the delinquent FBARs
• All FBARs are now required to be filed electronically.

The IRS will not impose a penalty for filing delinquent FBARs if you:

• properly reported on your U.S. tax returns
• paid all tax on the income from the foreign financial accounts reported on the delinquent FBARs
• You have not previously been contacted regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted FBARs will not be automatically subject to audit but may be selected for audit through the existing audit selection processes that are in place for any tax or information returns.

If you’re not sure if you’ve submitted your delinquent FBARs correctly or think you may need legal counsel to better understand your foreign financial affairs, Taxevo,significant experience in resolving international tax problems. Make the right decision about your undisclosed offshore accounts or unreported offshore income — Contact Us at arun@aruncpa.com.