Tax Relief Blog

Articles Posted in IRS Audit Reconsideration

Item: Mike Habib, EA
Rating: 5
Author: April S.

September 2, 2013

Have You Been Notified of an IRS Tax Audit? Help is Available.

by Mike Habib, EA

About 1.1% of taxpayers are selected for a tax audit each year. The IRS examines tax returns to verify that the tax reported is correct. Some of those people are selected randomly, others have items on their returns which raise a red flag and trigger the audit. Whichever category you fall into, you should know your rights, know what to expect, and know that you are entitled to be represented by a tax professional that can assist you with every aspect of the audit.

Upon receiving a letter informing you of the audit, you’ll be required to phone within 10 days to acknowledge the letter and schedule an appointment. It’s important that you do this in a timely fashion. Within the letter, or during that call, you will be advised on what items are being called into question. Depending upon your ability to obtain the supporting documentation, you will make an appointment with the IRS auditing agent. You may choose to have representation before you make that appointment, because a tax specialist will advise you of the time frame you’ll need to prepare for the meeting and in most cases you do not have to appear, your representative, power of attorney, would handle the audit for you.

February 28, 2013

Red Flags that Might Trigger an IRS Tax Audit Part 2 of 2

by Mike Habib, EA

Continued from our prior blog post.

The Most Common IRS Red Flags that could trigger a Tax Audit:

16. Claiming 100% business use of a vehicle – When you depreciate a car, you have to list on IRS Form 4562 of what percentage of its use during the year that you claim (testify on a Federal form by your signature) was for business. Claiming 100% business use of an automobile, especially if you have no other vehicles available for use, can be a red flag; so being conservative here is advisable.

February 15, 2013

Red Flags that Might Trigger an IRS Tax Audit Part 1 of 2

by Mike Habib, EA

No one really wants to be audited by the IRS. It’s time consuming, and quite frankly, a headache. You’ve probably wondered at some point who gets audited and why, as well as how you can avoid it. While there is no fool-proof way to avoid an audit; however, there are ways to reduce your chances.

The IRS audits slightly more than 1% of all individual tax returns each year because they do not have the resources and personnel to examine more than that. They do, however, look to audit the returns that are more likely to uncover overstated deductions, unreported income, false claims, or taxpayers that haven’t filed tax returns in a while.

September 21, 2012

TAX AUDIT – DO IT SMOOTH

by Mike Habib, EA

TAX AUDIT – DO IT SMOOTH

It is not uncommon for the IRS to conduct a tax audit on a company any uncalled day. The very news that the IRS would be paying a visit can cause undue, unnecessary stress for any individual/ organization. While a tax audit is just routine procedure conducted by the IRS, it has however gained a notorious reputation of being an extremely nerve wracking process for the taxpayer. To make the tax audit process an easy journey, the IRS is and has always made best of its attempt.

February 2, 2012

How to Handle an IRS Audit

by Mike Habib, EA

Amongst several factors that strike fear deep in the hearts of grown American men and women is receiving the IRS audit summons. Even if you have submitted your returns honestly and accurately, it is possible that your accounts may be subjected to an IRS audit. Though you are entitled to know why you are being audited, once you have received the audit communications from the IRS, they just can’t be wished away. You just have to buck up and handle the IRS audit to the satisfaction of the IRS and get yourself off the hook.

December 7, 2011

IRS Tax Audit and Examination

by Mike Habib, EA

What is an IRS Tax Audit and Examination?

An IRS tax audit and examination isn’t fun because they will be evaluating all aspects of what you have reported on your tax returns. They have the right to do this for individuals as well as for businesses. Sometimes, there is something on a given tax return that causes them to see red flags. Others are selected at random to be inspected from top to bottom.

It can be very unnerving for an IRS tax audit and examination to occur. They will go through your personal or business tax information. They will do it with a fine toothed comb too, searching for information to verify that the tax information reported is accurate. If everything is accurate they will finish up and be on their way.

Some people get lucky and discover they are entitled to some money from the IRS. However, that isn’t always the way it works. There are more people that find they now owe the IRS more money than they thought.

September 15, 2011

Architects IRS Tax Audit Help Landscape Architects Examination

by Mike Habib, EA

IRS Audit Overview

Pre-audit Analysis
An in-depth pre-audit analysis is essential to conducting a quality examination. IRS Examiners, Revenue Agents, should prepare a comparative analysis of the taxpayer’s returns for multiple years to assist in the identification of:

• large, unusual and questionable items,
• missing schedules, statements and/or elections
• inconsistencies between different years, and
• audit potential.

A successful IRS taxpayer audit depends upon what is done before the interview. The IRS examiner should obtain as much information about the taxpayer, be organized, and prepare an interview outline that is tailored to the taxpayer under examination. As preliminary information is gathered, it should be carefully reviewed and documented for the IRS tax audit.

May 21, 2011

Are vineyards eligible for expensing under Code Sec. 179?

by Mike Habib, EA

Did you receive an IRS tax audit for your vineyard?

Code Sec. 179 expensing has become a potent tax saver, thanks to current law’s $500,000 deduction ceiling. So it should come as no surprise that taxpayers and their advisers are on the lookout for assets that potentially qualify as Code Sec. 179 property eligible for expensing. One such class of property is vineyards and orchards. IRS has published an Audit Techniques Guide (ATG) turning a thumbs down on expensing for such property, but its conclusion appears to be based on prior law. A more recent ATG leaves the door open to a better result. This Practice Alert presents the case for treating vineyards and orchards as Code Sec. 179 property and covers IRS’s current “conflicted” guidance as well.

March 1, 2011

Nationwide tax relief services for Americans in need of tax relief help

by Mike Habib, EA

Do you owe back Taxes? Did you receive an audit letter from the IRS?

First, do not to panic. The IRS uses various letters to communicate with taxpayers about IRS back taxes and IRS tax audits. As with most IRS communications, there are strict deadlines associated with these letters that you have to meet. You should seriously review the items that are being challenged and prepare your factual response in a clear way to the IRS. As taxpayer, you can represent yourself, or hire a professional tax representative as a power of attorney to resolve your tax matters. Selecting a tax return for audit does not always suggest that the taxpayer has either made an error or been dishonest. In fact, some audits result in a refund to the taxpayer or acceptance of the return without change.

We represent clients before the IRS to resolve their tax controversies. The tax law is complicated and a professional will be better able to guide you through the audit experience, or to effectively resolve your back tax matter.

February 27, 2011

Tax Relief Specialists: How to Find a Reliable Tax Professional

by Mike Habib, EA

Tax relief experts have a job pretty similar in nature to specialists of any other field. For example, if you are traveling on the road and suddenly your car breaks down due to a mechanical fault, you cannot fix it without the service of an expert mechanic, unless you possess such proficiencies. Likewise, when your IRS taxes get out of control due to financial problems, carelessness or any other reason, you need the help of a tax relief expert to carry on with your smoother journey of life. But there are many so-called experts you need to beware of, who are there only to take your money. Let us try to expose these scammers!

The American economic system relies heavily on the taxation system and this is why the IRS handles the individuals vehemently who try to evade taxes. However, in current cloudy financial circumstances paying taxes is not an easy job. If you have become a tax defaulter, need not worry because there are several legal ways out.

If you try to solve your IRS tax problems without the technical know-how expertise, it is just like trying to fix your broken car without the help of a mechanic and you will end up nowhere. If you do not want to waste your time and money, contact a reliable tax relief expert, as soon as you realize the tax problem. Procrastination will result in nothing but penalties and higher interest and you will be paying much more than the actual back taxes owed.

★★★★★

Mike has given us peace of mind! He helped negotiate down a large balance and get us on a payment plan that we can afford with no worries! The stress of dealing with the IRS is huge and Mike helped us through it all. The peace of mind is invaluable, thank you Mike!April S.

Mike Habib - Thank you for being so professional and honest and taking care of my brothers IRS situation. We are so relieved it is over and the offer in compromise process went just as you said. Mike is very professional and will give you honest answers to the OIC process and you can really trust him. You won't be sorry you chose him!Joe and Deborah V.

Mike is a true professional. He really came thru for me and my business. Dealing with the IRS is very scary. I'm a small business person who works hard and Mike helped me see that they are not that scary after all. He was always there with the answers I needed and was very good about calling me back which I appreciated since your first reaction is to freak out and ask a million questions. He solved a messy case and worked very hard to resolve it. His rates are VERY reasonable for the amount of work he does! I give him my highest recommendation!Marcie R.

Mike was incredibly responsive to my IRS issues. Once I decided to go with him (after interviewing numerous other tax professionals), he got on the phone with the IRS immediately (as in the same day I signed with him) to squash an impending issue. And he worked directly with them to quickly come to a resolution I am very happy with. I'd highly recommend reaching out to Mike to see if he can help you with any IRS issues. I'm very satisfied!Marshall W.

I’ve seen and heard plenty of commercials on TV and radio for businesses offering tax help. I did my research on many of them only to discover numerous complaints and unresolved tax issues. I found Mike Habib through my own online search and contacted him. He was very professional with great communication, always answering my questions and concerns. Mike resolved my complicated tax problem just as he said he would. I would definitely recommend his services to family and friends.Nancy & Sal V.

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