Many taxpayers will never have the unfortunate experience of facing a tax audit. While not all audits will result in a huge tax bill or other negative tax consequences, the potential for a tax nightmare due to an IRS or FTB audit is always possible. If you or your business has received an audit notice from the IRS, California Franchise Tax Board, or another tax agency it is important to proceed strategically and professionally. The accountants and CPAs of the Roseville can provide tactical guidance through a routine or intensive IRS audit.
Accountants Handle Tax Audits for Businesses
Businesses can face an array of serious tax issues. One of the most serious tax problems a business and its owners, accountants, bookkeepers, or other responsible parties can be accused of is payroll tax fraud. Payroll taxes are often also called employment taxes. These terms refer to the taxes that are withheld from an employee’s paycheck including FICA and FUTA taxes. Businesses with employees have an obligation to account for, hold, and timely turn over these funds to the IRS or California Economic Development Department.
When businesses face payroll tax allegations, they are often shocked at just how aggressive the investigation is handled. Many business owners have compared the experience to being treated like a criminal and needing to prove that they did not commit payroll tax fraud. Perhaps most troubling about payroll tax fraud allegations is the fact that “responsible parties” can be held personally liable for the unpaid taxes.
Another area where businesses frequently run into trouble is with sales tax obligations. Some businesses are simply less than diligent in collecting and turning over the tax. Other business owners may use software and other devices to fraudulently avoid paying sales tax on goods sold. These practices can lead to serious tax allegations.
Businesses should engage in routine tax compliance assessments. Businesses that have certain risk factors like dealing in cash or doing business in industries where tax fraud is rampant, should be sure that all ta obligations are met. Furthermore, the business should ensure that all required tax documents are kept for the requisite amount of time. Retaining these records is not only the law, they will also help if your business face a tax audit or other tax allegations.
Accountants Can Address Individual Tax Audit Concerns
For individual taxpayers, income taxes are typically their foremost concern. The tax professionals of the Cook CPA Group can assist with an array of income tax audit concerns and related filings. If the IRS contacts you regarding a problem, we can review your filing and assess tax positions to determine if they are well-supported. If not, we can seek out evidence to better support your tax position. Finally, if the initial filing was in error, we can work to mitigate the financial damage that mistake might cause.
Fix Offshore Issues Before a Tax Audit
Offshore accounts are one are of particular focus for the IRS. It is wise to consider these problems before receiving a tax audit notice because relief programs like Streamlined Foreign Disclosure will no longer be available. if you have foreign investments or assets, we can also assess whether an offshore account disclosure is required. If so, we can guide you through the process of filing FBAR, FATCA, or both. It is essential for taxpayers to maintain compliance with foreign account reporting laws because even accidental violations can carry harsh penalties.
Accountants Understand the Anxiety Tax Mistakes Cause
If you have previously experienced difficulties with your tax filings, we understand that you may have a lot of anxiety going into the process. But, our team of accountants have helped many Californians recover after a missed or botched tax filing. Remember, simply because you missed filing taxes for one or more years doesn’t automatically mean that you will face huge penalties. For many taxpayers, the fear of the unknown is often worse than the reality. In some situations, the taxpayer may even be entitled to a tax refund. However, if the taxpayer fails to file within three years of the original tax deadline, any tax refund he or she would have been entitled to receive will be lost.
If you do have a tax issue, we can work to negotiate with the IRS. And if you do end up owing taxes, we can work with the IRS and explore tax relief and repayment options. For instance, we can explore the possibility of an offer in compromise which can allow you to settle your tax debt for significantly less than the full value. We can also explore payment plan and other options.
Work with Tax Audit Accountants in Roseville
If you are facing a tax audit, it is important to have an experienced and knowledgeable tax professional in your corner. The accountants of the Cook CPA Group can stand-up to an IRS audit and protect your bottom line.