Tax Appeals/Representation & Resolution

IRS, State, City, & Tax Court

What are your chances of being audited by the IRS?

The government/taxing authorities have the power to scrutinize taxpayers' tax returns and levy additional taxes against them for non-compliance with the tax laws. The dollar amounts used as random samples for audit purposes are a closely-guarded secret, therefore nobody is immune from being audited. My clients are seldom audited because I discourage them from taking foolish risks that can cost them a fortune in interests and penalties.

The Statute of Limitation

The statute of limitation fixes the time within which the taxing authority must take judicial action to enforce its rights against taxpayers. The taxing authority has up to three years to audit your tax return from the date the return was due or the date it was filed [IRC Section 6501(a)]. It has up to six years to audit your tax return if more than 25% of your gross income was omitted when you filed the return even if the omission was made in good faith [IRC Section 6501(e)]; and it has forever to come after taxpayers who did not file their tax returns [IRC Section 6501(c)(3)].

Surviving an Audit

The taxing authority has a slew of tax auditors, tax attorneys, revenue agents, and enforcement personnel representing its interest. It is important that you have the best tax specialist on your side, otherwise you would not stand a chance against those representing the government [Taxpayer rights to consultation and representation, Sections 7521 & 7811; restriction on examination of taxpayer, Section 7605(b); IRS publication 1, treasury regs. 26CFR601.105 and 26CFR601.106(b), internal revenue manual, IRM 4043.1(2), IRM 4015(1), and circular 230].

Hire a tax professional who has in-depth knowledge of your industry, whom other professionals hire/refer their clients to, and who has worked on high-profile cases such as the tax probe of a day trader owing over $800,000 in 2005, a rap mogul owing over $3 million in 2006, a medical professional owing $2 million in 2007, and currently, a day trader allegedly owing $400 million. Call Barry's Accounting Services if your accountant/tax preparer is under investigation for alleged wrongdoing and the authorities are auditing you and other clients, you received a collection due process notice (CDP notice) and you are requesting a hearing to appeal the determination within 30-days, need a forensic accountant, mitigating tax enforcement actions, defenses based on lack of willfulness, tax law research and professional application, civil & criminal tax fraud allegations, trust fund investigation [IRC Sections 7201-7206, 7602, 7605(b) & 7606], failure to file tax returns, delinquent tax settlement, discharging taxes in bankruptcy [Sections 6213, 6325(a)(1), 6325(b)(1), and 6325(b)(2)(A)].

Tax Resolution

There are two sure things about owing back taxes. They will not disappear if you continue to ignore them and they will continue to accumulate compound interest and penalties. You can be sent to prison for dodging the taxman if you continue to ignore written correspondence sent to you or your accountant. There are famous actors, artists, and sports figures who have had to honor bench warrants and had to postpone their tours/shows and return to their country or state to settle their tax disputes. If you apply for a mortgage, the banks will insist that you file and pay all back taxes before you can close on a property. Sure, you can buy it in someone else's name, but s/he can sell the property and pocket the proceeds and there is no legal recourse. If you own a business, access to funding at a low interest rate is critical for the growth and success of your business, but tax liens can hurt your chances of obtaining loans from banks and credit from suppliers. There are solutions to your tax problems. I can help you explore all the options available to you and get you back on track, but you or your authorized representative must take the first step and call me.

Here are two of the many letters I have on file from the government:

Testimonials

"I was audited and couldn't find my tax preparer. A friend referred me to Barry. Barry took my case and saved me $5,250. I have become more educated and realistic about who should prepare my tax returns. Thank you, Barry."
           - Ray McCloud, Real Estate Owner, Newark, New Jersey

"Our stores were under investigation because we failed to file tax returns and pay the sales and payroll taxes. We had discussions with several accountants who used to solicit us for business, but they were too busy attending to their regular clients. We found Barry's Accounting Services listing in our local newspaper. We called Barry and we agreed to provide him with the information he requested. We paid $8,226 less in penalties and interest. Our financial affairs are finally back on track and we are happy. Thanks, Barry."
           - Leo & Jane Robinson, Owners, Jamaica, New York