An IRS auditor who wants to come to your home or business often signifies a very significant problem. If they are asking to come into your home or workplace it is most likely to take a visual inventory of your assets and belongings. They may be looking for expensive art work, luxury furniture, fancy cars, expensive technical or computing equipment, or anything that would significantly inflate your net worth beyond what can reasonably be expected for your historical reported income.
They may provide a cover story of “wanting to measure your home office” if you took home office deductions, but do not believe their claims. There are other means you can use to prove the information they are seeking without opening your doors to a wholesale audit of your belongings.
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What if My Books and Records Are a Mess?
If the IRS agent decides that your books and records are in such a state that it is impossible for the audit to proceed, some tax payers might mistakenly consider this a good thing. Unfortunately a situation like this is only likely to create significant problems for the taxpayer and set up an uphill battle. Rather than reconstructing your records, the agent will simply assess you on any and all income that was deposited into your bank account. Next, they will disallow all expense that you claimed as non-provable. In any case, this will significantly increase the amount of taxable income you have and result in a much larger tax bill. If you wish to overturn this determination, the taxpayer must prove that stated expenses are allowable and present a set of books that can withstand significant audit scrutiny.
If the taxpayer wishes to fight the determination, reconstructive accounting by a financial professional is typically necessary. An amended tax return filing may even be necessary if the difference between the original and new return is significant. In any case, the burden of proof is always on the taxpayer. In many cases, only a reputable and experienced team of tax professionals can satisfy an auditor that whatever mess existed with the original accounting that caused the original return to be misstated, has been corrected in the revised accounting, and that ultimately the revised return position is the correct position.
We are tax relief experts specializing in IRS back tax help, Installment Agreements, tax lien help, wage garnishment release, IRS Offer in Compromises, tax debt forgiveness and a whole lot more. Get a free consultation from an experienced tax relief expert today (800)790-8574
Some Recent Tax Settlements:
Mr. Dillard – CA Owed $6884, IRS settled for $400
Mr. Batiste – LA Owed $18513, IRS settled for $2972
Mr. Johnson – CA Owed $21,378, IRS settled for $4500
Ms. Gonzalez – TX Owed $28,816, IRS settled for $1700
Mr. Anthony – NY Owed $14,000, IRS settled for $900
Mr. Wilkes – CA Owed 32,211, IRS settled for $1250
Owe the IRS and need help? Call us to discuss your unique situation (800)790-8574 or visit www.advancetaxrelief.com
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