Types of IRS Audits
You will be mailed a notice if you are being audited. It will be on official IRS letterhead. You will receive a notice by mail on the official IRS letterhead. The letter will inform you about which year’s tax returns are being audited. It will also indicate whether you will be interviewed in person or via mail. An in-person interview is either an office interview that takes place at the local IRS field office. It can also be an office interview, which takes place at a local IRS field office. Or it could be a home or business audit. The field audit is generally the most thorough, while the mail/paper auditor is the most common.
IRS Appeals
The Appeal System
The IRS Office of Appeals is an independent office that is available to resolve disputes, without litigation, in a way that is fair and impartial to the government and to you. After an audit, you have the right to appeal their decision. There are many ways to appeal an IRS audit. The strategy you choose can have an impact on the outcome of your audit. Consult our Los Angeles IRS appeals lawyer attorney to learn more about your options and the best way for you to appeal an audit decision.
What Is An IRS Appeal?
If your case is eligible for appeal, the Office of Appeals can review the issues and schedule a conference. These conferences can be conducted in an informal manner by telephone, written correspondence, or face-to-face meeting. The conference and correspondence are intended to solve the case and save time and money on court appearances. Appeals not based on these grounds will be considered by the IRS.
Consider An Appeal
If all of the following apply to your situation, you may be able to appeal an audit decision. First, the IRS sends you a letter explaining your rights to appeal its decision. You do not accept the decision. You are not agreeing to the agreement sent to you.
If the IRS makes an error in interpreting the law or if they don’t apply it correctly due to a misinterpretation, you may consider appealing. If the IRS takes inappropriate collection actions against you, or if your offer in compromise is denied, you have the right of appeal.
A Successful Appeal
You will need all evidence and records to support your argument and position in order to appeal successfully. A Los Angeles tax attorney who has a track record of success working with the IRS or the Office of Appeals may be an option.
IRS Collections
IRS Collections is all about collecting money owed to your account based on the assessed amount. The Collections department doesn’t care about why you were audited. They only want to collect the amount owed. There are several options available to taxpayers who owe money to the IRS. These include partial payment installment agreements that are not currently collectible, streamlined installment agreements, and offer in compromise.
Late Filing And Payment
Most people must file their individual income tax returns by April 15th to avoid penalties and taxes. To avoid penalties and interest, you must file your return by the deadline. You can file an extension if you are a taxpayer and still need to file your tax return by April 15. The IRS will continue to charge interest on any tax unpaid after April 15. The federal short-term rate plus 3 percentage is used to determine the interest rate. It is set quarterly. Interest compounds daily. You will be charged the failure to file a penalty for owing tax. This is typically five percent of the tax due for each month or part thereof (maximum 25%). There is a minimum penalty for late filing if your return is more than 60 days late.
Offer In Compromise
An offer in compromise (OIC), is an agreement between a taxpayer, the Internal Revenue Service, and which settles taxpayer’s tax liability for less than the full amount due. An OIC is generally not accepted by the IRS if the amount offered by the taxpayer is less than the reasonable collection potential. This is how the IRS determines a taxpayer’s ability and willingness to pay. If you owe the IRS money or want to pursue an OIC, it is best to consult an IRS tax attorney in Los Angeles.
Garnishments, Levies, and Liens
The IRS has improved its tools for collecting money owed by delinquent taxpayers. These include wage garnishments, liens, levies, and liens. A lien is when the government has a legal claim on your property to collect the amount due. The IRS can seize money from your bank account to collect the amount owed. Wage garnishments can be used by the IRS to seize money from your bank account.
This article was written by Alla Tenina. Alla is one of the best tax attorneys in Los Angeles California, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. Click Here for more information. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.