Getting ready to be audited by Internal Revenue Service overcome the fear

Published Date : 16 Feb 2016
Hi All, This is Awais again with you your tax expert. This is second series of articles to help you cope better in tax related matters for your business specially if you or your business is some how caught in any audit by IRS. Some audits of IRS are totally random that means that they select people just by a computerized mechanism and then they will verify your data and ask you different details regarding your business or salary if you are a salaried person.
But sometimes the audit is not just a random audit but it is a routine audit. This happens when your debts are increasing and you are not paying back and in such scenarios when your business is selected for an audit then you should think of hiring an attorney. The job of the attorney will be to help you reach to any settlement with the IRS.

The bottom line to understand in all this situation is that you have to make the IRS believe that you and your business are suffering from a total grieve loss, and your assets are totally decreasing and you are in bad hot waters. To make them think like this you need documentary evidences. Remember the court will not listen to the sad story of yours. You need lawyers and attorneys that will speak on behalf of you in a proper legal manner.
Please remember that delaying the matters after you have been selected for tax audit is very dangerous. It is possible that the IRS will declare you as a criminal because of not paying the state taxes. So hurry up you have to tell them your bad situation and for that you need a lawyer or attorney.
Please remember that when you are being audited by IRS, there is a very high level of stress building upon to you and its not very easy to cop up with that pressure. Many people fall into depression when they fail in handling the stress of tax audit. So it is very advisable is to plan ahead and in the situation you must hire a lawyer who can speak and communicate with IRS on your behalf.

Please remember that as i told in my previous article here regarding whom you should hire. Here i will repeat again that the attorney's job is not to file the income tax return on your behalf. They are very expensive and you should visit them only when you think that the cat is out of the bag means the situation you think is very critical. If you need just income tax or wealth statement preparation, you can simply hire a CPA or tax preparation professional.

I hope these tips today will be beneficial for you in your tax related matters.

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Tuesday, February 16, 2016

Which type of professional to chose for complex and simple tax scenarios

Hi all, Awais here again your professional assistant in matters of taxation and lawsuits. Today i will be writing few lines about the business owners who are always in tension regarding the tax they had to pay and they are getting afraid when they see huge amount of taxes that seem more than the amount they are getting as an income from their business.

First of all, i know you are afraid as tax attorneys and professionals charge a lot and you want to avoid hiring one but please don't avoid this. Hiring a tax professional is very important for your business and all above is that you should focus on building a good relationship or friendship with the lawyer as that's not a one day task. Every year you need assistance from him at all costs and you cannot avoid this.

So always give him a cup of tea or coffee and try to talk in a very frank and friendly manner and try to develop a good relationship with the attorney or if you are visiting his office bring some flowers or a pen as a gift for him.

That's all the second part of the story but initially you had to choose a tax expert first and if you selects a wrong person who is just able to file or fill up the taxation forms than you are putting your focus and attention to a wrong person. You have to make sure that the layer you are approaching is properly certified and he is certified Enrolled Agent (EA) by Internal Revenue Service (IRS) of United States. Also second thing you should notice that the attorney should be Certified Public Accountant. In most of the cases you don't need to hire a CPA because you may be having a very small firm, in this case you can hire just a simple  certified EA but if you are running a very large organization with 50 plus employees in that case its better that you visit a small CPA
firm and discuss your business scenarios with them.
Last option is to hire a tax attorney. These attorneys charge mush more than EA's or CPA's because they have specialized degrees and you should visit them only in the case when you have a very complex situation related to taxes or your business that you are unable to solve.

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Saturday, February 13, 2016