IRS AUDITS ARE INCREASING
In the last few years, the IRS has been hiring massive number of revenue agents to conduct more aggressive and sophisticated tax audits. The IRS will request for proof of deductions, income, or any items reported on your tax returns. The IRS will also look for any signs of inconsistency such as lifestyle habits for signs of unreported income by reviewing records, asking probing questions etc.
An IRS audit is a review/examination of an individual’s or organization’s or accounts and/or financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate. If you need help with your sales tax in Irvine, we are your Irvine sales tax help center.
Selecting a return for audit does not always suggest that an error has been made. Returns are selected using a variety of methods, including:
• Low scores of your tax returns during computer screening
• Random selection
• Document matching
• Inside leads
• Related examinations – returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit.
Should your account be selected for audit, you will be notified in two ways:
• By mail, or
• By telephone
The length of each tax audit varies depending on the type of audit, the complexity of items being reviewed, the availability of information being requested, the availability of both parties for scheduling of meetings and your agreement or disagreement with the findings.
An audit can be concluded in three ways:
• No change: an audit in which you have substantiated all of the items being reviewed and results in no changes.
• Agreed: an audit where the IRS proposed changes and the taxpayer understands and agrees with the changes.
• Disagreed: an audit where the IRS has proposed changes and the taxpayer disagrees with the changes. You will then need to pursue with appeal process.
If you have any income tax audit issue, we will represent you from the start to the end of the income tax controversy. We are your Irvine tax help center.
CALIFORNIA SALES TAX AUDIT
In a sales and use tax audit, the auditor wants to determine the following about the returns you have filed:
• Did you report all gross receipts from sales of tangible property and taxable labor and services?
• Did you report the cost of all business equipment and supplies that -purchased without tax either from out-of-state vendors or for resale that would be subject to use tax?
• Did you properly claim deductions?
• Did you properly allocate local tax?
• Did you use the correct rate of tax when reporting sales in special tax districts?
• Did you properly apply tax to your sales and uses of tangible property?
Initial contact is usually by phone call from the auditor. If unable to reach you by phone, the auditor may write or visit your business location.
During the examination, if the auditor finds that your records indicate possible reporting errors, the auditor can utilize their many different audit methods such as mark-up method, sample basis audit, observation test at your business premises, and etc.
When the audit is completed, the auditor will arrange to hold an exit conference to discuss the audit findings. If you disagree with the audit findings, you will then be given your appeal rights.
Under the California Revenue and Taxation Code, any person who evades the reporting, assessment or payment of sales taxes that would otherwise be due may be guilty of sales tax evasion. Violations can be subject to fines and/or jail time.
Examples of sales tax evasion are:
• Retailers collect sales tax reimbursement from their customers on sales but intentionally fail to report and pay the tax collected.
• Retailers intentionally fail to report all retail sales on which sales tax is due.
We also can assist you in resolving an outstanding tax liability. If your sales tax audit cannot be resolved with the auditor, it is important to engage a representative in a timely manner. If you have a sales tax problem,we will represent you from the start to the end of the sales tax controversy.
NEED TAX HELP?
- I’m dealing with a tax levy
- I’m facing a wage garnishment
- A tax lien was filed against me or my business
WE REMOVE TAX LEVIES
In our experience, nothing can be more financially or emotionally crippling than having your accounts receivable or bank accounts frozen due to a government issued levy. Because Kaya Tax & Bookkeeping Services, Inc. has successfully lifted many levies for our clients who hired us when a levy was attached to their bank accounts, we can assure you with near absolute certitude that we will get your levy released too, and get the levied funds back under your control.
Furthermore, once you are under Kaya Tax & Bookkeeping Services, Inc.’s management, the fear of being levied again should not be a concern. We take great pride in putting a strategy in place to protect our clients from being levied in the future. With Kaya Tax & Bookkeeping Services, Inc. on your side, you will be given this same protection.
WE GET LEVIES RELEASED
Kaya Tax & Bookkeeping Services, Inc. knows how to release levies. With our time tested levy removal processes and proven techniques for preventing future levy action against you or your business, trust Kaya Tax & Bookkeeping Services, Inc. to remove a levy so that you can manage your personal or business cash flow on your terms, not theirs. We know from removing hundreds of levies that it is imperative to take immediate action and we will do this for you, too.
If you are experiencing a levy on the day we are hired, you need to know that we will begin moving on your behalf immediately so that funds are returned to you in the quickest manner possible. We act immediately so your employees get paychecks, your bills get paid, and you can sleep at night. We know what is at stake and with so much at risk, we will not rest until your levy is released, and a resolution to this cash flow crisis is being put forth.
WE REMOVE WAGE GARNISHMENTS
A wage garnishment occurs when an employer withholds some of your earnings for the payment of a debt as the result of a court order or other equitable procedure.
It is illegal for your employer to fire you because your earnings have been garnished for any one debt, but that protection disappears if it happens a second time. The law also protects you by limiting the amount which may be garnished in any work week or pay period.
The tax specialists at Kaya Tax & Bookkeeping Services, Inc. understand federal and state garnishment laws, and will make sure that you are fully protected from the embarrassment and inconvenience of wage garnishments.
WE NEGOTIATE AN END TO WAGE GARNISHMENTS
Negotiating an end to a wage garnishment is not impossible. In most cases, a wage garnishment can be lifted within several days of Kaya Tax & Bookkeeping Services, Inc. being hired. We know the steps that must be taken to release a wage garnishment. We will go to work on the day we are hired to do the same for you.
WE REMOVE TAX LIENS
A tax lien is a claim issued against a person or a business because the taxing authorities believe that you or your business have neglected or refused to pay a tax obligation after a demand for payment has been made. Once this demand for payment has been made, a tax lien is filed to secure the government’s interest or to capture unpaid taxes that are owed. A tax lien is attached to a person or to a business when the taxpayer is notified of a tax debt and the tax liability is not paid in full within ten days of notifying the taxpayer.
Tax liens are filed with the county clerk’s office in which the taxpayer lives, owns property, or owns a business. Once filed, it becomes part of the public record. With respect to a federal tax lien, the taxpayer is also notified that they have a right to a hearing at which time the taxpayer can dispute the legitimacy of the filing. If the federal government’s claim stands, the taxpayer has appeal rights in U.S. Tax Court or a Federal District Court.
In the event that the tax lien is valid for a tax owed, this issue can reflect negatively on the taxpayer’s credit report for up to ten years which could seriously undermine the taxpayer’s ability to borrow money.
WE HELP YOU GET RID OF TAX LIENS
Although Kaya Tax & Bookkeeping Services, Inc. knows how debilitating a tax lien can be on your personal or business credit, we will do all that is possible to remove this lien. We also understand that there are other factors that must be addressed to prevent more tax liens from being filed against you or your business. If we uncover that a tax is owed and that this Notice of Tax Lien was issued in accordance with administrative procedures, then we will go to work resolving this tax debt issue, and not waste precious time and resources battling an issue with the federal government that cannot be won.
If we determine the lien is valid, there are several strategies that we employ to nonetheless remove tax liens. Again, once we are certain that the laws were followed accurately, we can either file an Offer in Compromise to satisfy the debt ‘for pennies on the dollar’ or move forward with formalizing an Installment Agreement depending on your financial condition. Both of these strategies can be used as a basis for negotiating with the government to remove tax liens.
We can also negotiate to have tax liens removed if the withdrawal of the tax lien will facilitate the collection of the tax liability, or it is agreed that the removal of the tax lien is in the best interest of the government and the taxpayer.
Kaya Tax & Bookkeeping Services, Inc. is also experienced in ‘lien subordination.’ Put another way, we know how to subordinate the government’s lien position to that of the taxpayer’s mortgage company so equity from this refinancing can be extracted to pay down a tax liability. Kaya Tax & Bookkeeping Services, Inc. knows how to settle tax debts which is the first step in the removal of a tax lien.
We put comprehensive resolution strategy in place to address the fact that your taxes may remain unpaid for the next several months. This being the case, we will craft a resolution strategy that is specifically tailored to your financial condition.
WE PROVIDE PEACE OF MIND
Kaya Tax & Bookkeeping Services, Inc. understands how debilitating a tax liability can be for you, your health, your family, and perhaps your employees. From experience, we know that if left unresolved, and not managed properly until an agreement is formalized, not only will the tax increase nearly every day, the related stress could potentially lead to devastating and long term health issues. From having worked closely with hundreds of taxpayers, we know how alone you may feel or how hopeless your situation may seem. Let us be the first to tell you that we can and will help you. We are here to protect, listen and explain what steps we are going to take in order to end this nightmare. At Kaya Tax & Bookkeeping Services, Inc., we deliver peace of mind, one client at a time.