IRS Tax Audit – From A to Z

IRS Tax Audit Representation – 1040, 1041, 1065, 1120

The Internal Revenue Service, all known by the three most dreaded letters of the alphabet; IRS. This agency while first created to enforce all of the tax laws, the IRS has built a not so good reputation for being ruthless in how it goes about its duties. The tax audit is one of its primary information-gathering tools. For all the negative connotations swirling around the IRS does allow everyone the opportunity to have some type of IRS Tax Audit Representation. This arm of the government was created in order to enforce the laws, rules, and regulations that can be found inside the US Tax Code. The IRS is one of the few agencies that have the full power of the United States government behind it. Fortunately, there are rules that are built-in that allow for IRS Tax Audit Representation.

What is an IRS Tax Audit and its purpose?

Let’s start out with a basic understanding of what an IRS Tax Audit is and why someone or an organization or business may be audited. Basically an IRS Tax Audit is a formal review of the tax information that has been submitted to the IRS by an individual, business or other organization. The audit is conducted by an official IRS revenue agent – RA and can either be done in an IRS office, via correspondence, at the place of business or even at an EA, CPA, lawyer office.

The location of the meeting will be determined by the IRS revenue agent – RA and your representative, power of attorney. Fortunately, there have been changes to the audit process that allows for IRS Tax Audit Representation for all taxpayers. The primary reason for the tax audit is to determine that all of the information that has been submitted on the tax forms are complete and correct according to all of the current tax laws and tax tables. The RA revenue agent is tasked to ensuring all of the information is correct and as long as you are able to prove all of the information is correct you should not have any issues with the audit.

Who is eligible to be audited by the IRS?

The simple answer to the question of who is eligible to be audited by the IRS is anyone or entity that is covered by the US Tax Code. However, the fact that such a small number of all of the tax returns that are submitted or that are required to be submitted by US citizens or American-based companies or organizations will be audited,  forms 1040, 1041, 1065, 1120.

The actual numbers will vary year to year, but it is safe to say that the number of actual returns that will be audited by the IRS is somewhere less than 1 percent of the total number of tax returns that will be submitted for the previous tax year. According to statistics, the likelihood that a person who falls into the low to middle-income tax bracket will not be audited. However, the statistics are not as favorable for those individuals that find themselves in a higher tax bracket, such as $200,000.00 or higher. If you are in that position, you might be a candidate for IRS Tax Audit Representation.

What are some kinds of audit tax problems?

If you happen to be one of the unlucky ones to receive an audit letter from the IRS (this is the only legitimate way you will be notified) it will likely be due to a number of reasons. We put together a list of some of the most common tax problems that would trigger an audit by the IRS.

Erroneous information on tax forms – The number one thing that leads to an IRS audit is that there is some type of issue with some of the information that has been entered on the tax return that you submitted to the IRS.

Failed to report all income – It is very important that you report all of the income that you have received during the year to the IRS so that it can be determined the correct amount of taxes that you owe to the Federal Government. Intentionally failing to report income to the IRS can result in owing more taxes and in a worst-case scenario it can even result in punitive actions taken against you.

Overstating deductions – The US Tax Code details all of the acceptable deductions that can be legally taken. One of the other big reasons for an IRS Tax Audit involves taken an excessive number of deductions, but if you also attempt to take unauthorized deductions that can also cause you to be audited and or penalized.

Inaccurate filing status – Not filing the proper marital status on your tax return can be a red flag for the IRS. Even if you were recently divorced and you are filing single/head of the household for the first time. For the most part, simply explaining your situation will clear that up for the IRS.

Wrongly filing of dependents – Trying to claim extra dependents or inaccurately filing the number of dependents can be a problem and may lead the IRS to ask for an audit of your tax returns. You can check with the IRS to be sure that you are claiming the right number of dependents.

Note: This does not represent all of the reasons why a person would be audited, however, if you were to hire IRS Tax Audit Representation you ask your representative, CPA, Lawyer, EA about other tax problems with your forms 1040, 1041, 1065, 1120.

What is a Tax Representation Firm?

When the IRS started allowing people to have representation by EA, CPA, or Lawyer other than the person who signed the return as the person who filled out the information to be present during an IRS tax audit. Today, you can hire a tax representation firm that is experienced with working with the IRS. These Tax Firms employ several people that are highly trained and experienced dealing with the IRS. Once hired they will be with you every step of the way to ensure that you are being treated fairly by the RA – IRS revenue agent during the tax audit process.

How would you benefit by hiring a representation firm?

There are several benefits for you to hiring a Representation Firm to help you with your IRS Tax Audit Problems. One of the primary benefits is that they can help you to come up with a good strategy for your upcoming tax audit with the RA – revenue agent. The firm normally has specialized skill set, have many years of experience dealing with the IRS, including actually representing other audited clients.

Representation Firms are well trained on all of the current Tax Code changes. By being better prepared they will be able to help get you the best result possible during your audit.

This is where Mike Habib, a professional IRS licensed enrolled agent comes to assistance. You can make an appointment and seek professional advice and IRS representation through this website.

Mike Habib treats such matters with unmatched professionalism and dexterity. Mike Habib has resolved similar issues with ease. Careful management of troublesome tax related issues, organization of all your records and quick, smooth completion of IRS Tax Audit has been his forte for many years. Make this choice as soon as possible and regain your peace of mind and confidence.

The IRS tax audit representation tax firm of Mike Habib, EA in Whittier California provides professional tax audit and examination representation for individual and business clients throughout Southern California including Norwalk, Santa Fe Springs, Downey, Pico Rivera, Montebello, Hacienda Heights, La Habra Heights, West Covina, La Habra, Brea, Fullerton, Yorba Linda, Cerritos, La Mirada, Lakewood, Anaheim, Santa Ana, Long Beach, Compton, Torrance, Los Angeles, Pasadena, Beverly Hills, Santa Monica and throughout Los Angeles County, Orange County, Corona, San Bernardino County, Riverside County, Ventura County, the Inland Empire, the San Fernando Valley and the San Gabriel Valley.

 

Bakersfield IRS Tax Audit and Examination

4825 Coffee Rd.

Bakersfield, CA 93308

(661) 632-2799

Camarillo IRS Tax Audit and Examination

751 Daily Dr.

Camarillo, CA 93010

(805) 445-4771

 

El Centro IRS Tax Audit and Examination

2345 S. Second St.

El Centro, CA 92243

(760) 352-3721

 

El Monte IRS Tax Audit and Examination

9350 East Flair Dr.

El Monte, CA 91731

(626) 312-5138

 

Laguna Niguel IRS Tax Audit and Examination

24000 Avila Rd.

Laguna Niguel, CA 92677

(949) 389-4002

 

Long Beach IRS Tax Audit and Examination

501 W. Ocean Blvd.

Long Beach, CA 90802

(562) 491-7751

 

Los Angeles IRS Tax Audit and Examination

300 N. Los Angeles St.

Los Angeles, CA 90012

(213) 576-3009

 

Palm Springs IRS Tax Audit and Examination

556 S. Paseo Dorotea

Palm Springs, CA 92264

(760) 866-6125

 

San Bernardino IRS Tax Audit and Examination

290 N. D St.

San Bernardino, CA 92401

(909) 388-8108

San Diego IRS Tax Audit and Examination

880 Front St.

San Diego, CA 92101

(619) 615-9555

 

San Marcos IRS Tax Audit and Examination

1 Civic Center Dr.

San Marcos, CA 92069

(760) 736-7355

 

Santa Ana IRS Tax Audit and Examination

801 Civic Center Drive W.

Santa Ana, CA 92701

(714) 347-9204

 

Santa Barbara IRS Tax Audit and Examination

1332 Anacapa St.

Santa Barbara, CA 93101

(805) 564-7555

 

 

Van Nuys IRS Tax Audit and Examination

6230 Van Nuys Blvd.

Van Nuys, CA 91401

(818) 756-4607

 

Woodland Hills IRS Tax Audit and Examination

6340 Variel Ave
Woodland Hills, CA 91367
(818) 274-0807

 

Other IRS Audit offices we can help by representing the audited taxpayer:

 

Chico IRS Tax Audit and Examination

1395 Ridgewood Dr.

Chico, CA 95973

(530) 343-2324

 

Fresno IRS Tax Audit and Examination

2525 Capitol St

Fresno, CA 93721

(559) 444-2044

 

Modesto IRS Tax Audit and Examination

1533 Lakewood Ave.

Modesto, CA 95355

(209) 548-7388

 

Oakland IRS Tax Audit and Examination

1301 Clay St.

Oakland, CA 94612

(510) 637-2487

 

Redding IRS Tax Audit and Examination

850 Industrial St.

Redding, CA 96002

(530) 224-0695

 

Sacramento IRS Tax Audit and Examination

4330 Watt Ave.

Sacramento, CA 95821

(916) 974-5225

 

Salinas IRS Tax Audit and Examination

928 East Blanco Rd

Salinas, CA 93901

(831) 753-6895

 

San Francisco IRS Tax Audit and Examination

450 Golden Gate Ave.

San Francisco, CA 94102

(415) 553-8990

 

San Jose IRS Tax Audit and Examination

55 S. Market St.

San Jose, CA 95113

(408) 282-0179

 

Santa Maria IRS Tax Audit and Examination

2384 Professional Parkway

Santa Maria, CA 93455

(805) 352-0355

 

Santa Rosa IRS Tax Audit and Examination

777 Sonoma Ave.

Santa Rosa, CA 95404

(707) 523-0924

 

Stockton IRS Tax Audit and Examination

4643 Quail Lakes Dr.

Stockton, CA 95207

(209) 942-1910

 

Visalia IRS Tax Audit and Examination

5300 W. Tulare St.

Visalia, CA 93277

(559) 265-4109

 

Walnut Creek IRS Tax Audit and Examination

185 Lennon Lane

Walnut Creek, CA 94598

(925) 935-9308