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Tax Audit Boca Raton

President Donald Trump famously declared that his tax returns have been audited every year for many years. “Twelve years or something like that,” he said last fall during a debate.

Is a tax audit something for the average taxpayer to be worried about in Boca Raton?

Tax Audits have declined in recent years, owing to a loss of 30 percent of the IRS’ enforcement staff since 2010. In fiscal year 2016, the agency says it audited nearly 1.2 million tax returns, or just 0.6 percent of the total.

Seven out of 10 audits were conducted after a notice like this:

Dear Taxpayer,
Some of the information that you provided to us does not agree with the information we received from other sources. 
— The Internal Revenue Service

Focus on richer taxpayers
In recent years, the tax collector has been focusing on the wealthy. If you earn $10 million or more, you have a roughly 1 in 5 chance of getting audited. But for most taxpayers, the odds of a tax audit are less than 1 in 100.

Here’s the breakdown:

Percentage of individual returns audited in 2016
Size of adjusted gross incomeReturns audited
No adjusted gross income3.25%
Under $25,0000.8%
$25,000 – $49,9990.49%
$50,000 – $74,9990.41%
$75,000 – $99,9990.52%
$100,000 – $199,9990.62%
$200,000 – $499,9991.01%
$500,000 – $999,9992.06%
$1,000,000 – $4,999,9994.6%
$5,000,000 – $9,999,99910.46%
$10,000,000 or more18.79%

Source: Internal Revenue Service Data Book, 2016

What’s the DIF?

In addition to a filer’s overall income, other figures can attract auditors’ attention.

A return can be selected for audit via the IRS’ computer-scoring system known as Discriminant Information Function, or DIF. The DIF looks at deductions, credits and exemptions, with norms for taxpayers in each of the income brackets.

The actual scoring formula to determine which tax returns are most likely to be in error is a closely guarded secret. But it’s no mystery the system is designed to screen for returns that could put more money in the U.S. Treasury.
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How do your deductions compare?

Tax experts believe one discriminant information function component looks at average deduction amounts. This allows IRS examiners to spot inconsistencies, such as a high mortgage interest deduction for someone with low income.

Tax specialists at Wolters Kluwer Tax & Accounting US examined 2014 return statistics, the latest complete data, and came up with the following itemized deduction averages. The experts note that the IRS takes a dim view of taxpayers who base their claimed deductions on these figures. The numbers can be useful, however, in giving you a general idea as to whether certain deductions on your return might seem out of line.

Average deduction amounts according to income
Income rangeMedical expensesTaxes*Mortgage interestCharitable contributions
Under $15,000$8,787$3,566$7,129$1,427
$15,000 – $30,000$8,477$3,376$6,619$2,339
$30,000 – $50,000$8,209$4,098$6,511$2,594
$50,000 – $100,000$9,614$6,679$7,553$3,147
$100,00 – $200,000$11,122$10,983$9,147$4,130
$200,000 – $250,000$18,092$17,763$11,642$5,786
$250,000 or more$36,992$50,679$16,982$21,596

*State and local income and sales taxes
Source: Wolters Kluwer, 2017

So, besides a higher income or deduction disparities, what else might trigger a red flag?

  • Income other than basic wages; for example, contract payments.
  • Unreported income, such as investment returns.
  • Home-based businesses, especially when in addition to salary income, and home office deductions.
  • Noncash charitable deductions.
  • Large business meal and entertainment deductions.
  • Excessive business auto usage.
  • Losses from an activity that could be viewed as a hobby rather than a business.
  • Large casualty losses.

Returns claiming the earned income tax credit, or EITC, designed as a tax break for lower-income wage earners, also get IRS attention. The credit’s complexity often results in legitimate mistakes on returns. Some filers, however, have been caught making false claims to increase the payment the credit provides.

Schedule C filers who report a business loss also are likely to face more questions from the IRS tax audit in Boca Raton.

But don’t be afraid to claim all the deductions and credits to which you’re entitled. Even if your return is questioned, it’s not a foregone conclusion that you’ll end up owing the IRS. As long as your deductions and expenses are legitimate and you have documentation, they will be allowed but let the professionals at Total Tax Solutions help you navigate the IRS’s tax audit water by calling 954-946-4142.

 

File Back Taxes Boca Raton

Every day the massive computer center at the IRS is getting more sophisticated, it’s just a matter of time before they catch up with you to file your back taxes in Boca Raton.

This is not a situation to take lightly, failing to file your back tax returns is a criminal offense. If you do not file, you can be prosecuted and punished with potential jail time, one year for each back taxes year not filed. Why risk potentially losing your freedom for failing to file your back taxes!

Let Total Tax Solutions give you the peace of mind you deserve by helping you get in compliance with the law in Boca Raton. If you voluntarily file your back taxes you’ll likely avoid further problems other than having to pay the interest and penalties.

If you wait for the IRS to file your returns for you, they are filed in the best interest of the government, usually with little or none of the deductions you are entitled to.

Before anything can be done to extract you from this predicament all the returns must be 6 years of back taxes to get you current. In most cases, you will likely owe taxes, interest, and penalties after the returns are filed. Once we see how much is owed, we’ll set a course of action to resolve your back taxes!

Please call 954-946-4142 to get a Free Consultation with our Certified Public Accountant, Enrolled Agent and tax specialists.

Tax Lawyer Fort Lauderdale

Why Pay Fort Lauderdale Tax Lawyer Fees?

Total Tax Solutions is a tax resolution company founded by a Certified Public Accountant and Enrolled Agent focused on helping taxpayers and businesses reduce, remove, and resolve unpaid Federal, State and City tax debts for individuals or businesses. If you have unpaid, unfiled or other tax issues and problems, our team of tax professionals are the alternative to expensive tax lawyer fees.

Affordable Alternative to a Fort Lauderdale Tax Lawyer

You do NOT need a tax lawyer to solve your administrative tax problems. For one, hiring a tax lawyer may be more expensive than necessary. Some tax lawyers require retainers, while others charge “hourly” fees. Second, many tax lawyers represent clients in a broad range of areas, and do not concentrate on tax resolution only, as Total Tax Solutions does.

We at Total Tax Solutions help people who are in trouble. It is our number one goal to get them in good standing with the Federal, State, or local tax authorities in a reasonable manner that makes financial sense for our clients. Then, we work hard to negotiate a final resolution to their past due tax debts and get their lives back to normal once and for all. Finally, it is our objective to put our clients on the path to remain in good standing with the tax authorities going forward!

Back Tax Fort Lauderdale

The IRS will take advantage of a taxpayer that is not knowledgeable about tax law and IRS collection procedures.

Frankly, taxpayers need to be protected from IRS error, abuse, and intimidation in handling back tax issues in Fort Lauderdale.

Taxpayers frequently overpay their tax liability either as a consequence of inappropriate IRS actions, or because they do not have the counsel of a skilled and experienced tax professional.

That’s why Total Tax Solutions was founded: to represent you, the Fort Lauderdale taxpayer or business, against them, the IRS for back tax.

Put Total Tax Solutions Between You and the IRS for back tax

When you seek tax representation with Total Tax Solutions you can stop IRS action, penalties and intimidation. Once you have obtained our tax representation services, the IRS cannot contact you.Thereafter you will not be required to have any personal contact with the IRS whatsoever.

We will help you resolve all of your back tax problems including outstanding taxes, penalties and interest, audits, liens, levies, garnishments and seizures.

Because we are dedicated to only representing Fort Lauderdale taxpayers and businesses, we put all our training, knowledge, and skills as Certified Public Accountant and Enrolled Agent to work for you to help resolve your back tax issues. With decades of experience and thousands of completed tax negotiations to our credit, we know how to plan and prepare an acceptable Offer in Compromise in an amount that is often drastically lower than the taxpayer ever hoped.

Due to our highly-experienced representatives, we deliver one of the highest rates of acceptance by the IRS of Offers in Compromise, Request for Innocent Spouse Relief, Equitable Relief, Collection Due Process Appeal, Abatement of Penalties and Interest, reduction of tax liability determinations, protection from harassing communications, and in some cases, even relief from all taxes due from back tax issues.

Tax Lawyer Pompano Beach

Experience dealing with the IRS

When you receive a threatening letter or phone call from the IRS, what should you do? Most people think they have to contact a tax lawyer to represent them! Should you hire a tax lawyer or a team of tax professionals, who all will be working together to solve your IRS problem?

Your first thought should be who might be best qualified to solve your IRS problems. After all, don’t you really want to hire the BEST TEAM for the job? Of course, but would you really hire someone to represent you based on a title, such as “individual tax lawyer.”

A tax lawyer can handle some of the issues, however, Total Tax Solutions team deals with the IRS on a regular basis, and we have the knowledge and experience to advise you of options for resolving your IRS problems. The IRS officers’ actions and advice are in the governments’ best interest.

You need a team of Certified Public Accountant and Enrolled Agent working on your behalf to protect your interests. IRS problems do not go away unless they are dealt with. In fact, they only get worse the longer you wait to have them taken care of, with penalties and interest being added daily.

Don’t delay, get started today

As you may already know, the IRS can garnish your wages, put liens and levies on your bank accounts and homes, and much more.

Don’t wait any longer to have this taken care of and get the peace of mind you have been wanting. By contacting a tax lawyer you will spend a lot of money when you could have hired the Total Tax Solutions team, you can reduce your tax debt, potentially remove a lien, stop a garnishment and put an end to your headaches.

 

Tax lawyer Florida Residents – We’re Local!

We’re happy to meet with you in-person to discuss your tax problems for a free consultation.

Back Tax Pompano Beach

Back Tax & Delinquent Taxes in Pompano Beach

Haven’t filed your taxes in a while? You may owe back tax or you may be missing out on a refund.

File your federal tax returns for back tax and missing years as soon as possible to avoid possible tax liabilities, claim a refund for the previous 3 tax years, protect your Social Security and disability benefits, and avoid delayed loan approvals from lenders. If you have received a notice in the mail for back tax or returns, promptly send your past due back tax returns to the appropriate IRS address, however, doing so without the assistance of a trained Certified Public Accountant or Enrolled Agent is not advisable.

How to File Back Tax or Delinquent Returns in Pompano Beach 

  1. Gather important documents. For each year that you failed to file a federal tax return/back tax, make sure you have your W-2 or Form 1099 on hand. Remember that well-kept receipts are needed to claim certain deductions and credits.
  2. Locate missing paperwork. A copy of your income information can be requested from your employer. Tax documents can also be requested from the IRS by filing Form 4506-T, Request for Transcript of Tax Return. The IRS will send transcripts that contain the most important information, not duplicate copies, from your previous W-2s and Forms 1098 and 1099.
  3. File your back tax and delinquent returns  using the necessary forms. Taxes for previous years will need to be filed by hand using instructions from that tax year.
  4. Submit your forms to the IRS. Once the necessary forms are received by the IRS, you are fully responsible for paying what is owed. You should receive a bill with the exact amount due, including any interest charges that have accrued. It takes the IRS approximately 6 weeks to process past due tax returns.

 

Making Payments

You can request a 60- to 120-day window to pay your tax bill in full on the IRS website or by calling 800-829-1040 at no additional charge. An installment agreement or offer in compromise are possible options should you need more time to make the full payment amount, however, these matters are very complex and are better handled by a trained Certified Public Accountant or Enrolled Agent in Pompano Beach.

The IRS will allow you basic living expenses in the event that your delinquent tax debt is substantial. The amount of living expenses you receive will depend on the size of your family and national and local standards. Basic living expenses include housing, utilities, transportation, food, clothing and out-of-pocket health care.

 

IRS Can Take Action

Failure to file a past due return, back tax, or delinquent returns can have serious repercussions. If a tax return is not received, the IRS can file a substitute return on your behalf using information collected from your employer, bank, and other sources. This return will lead to a tax bill. If this bill is never paid, the delinquent tax collection process will begin, allowing the IRS to levy your wages or bank account or even file a federal tax lien against you.  Call now for a free consultation 954-946-4142 or toll free 855-275-0873.

 

IRS Tax Audits Pompano Beach

Nothing strikes fear in the hearts of people more than receiving an IRS Tax Audit letter in the mail in Pompano Beach.  IRS Tax Audits take significant time away from your business and family, requiring you to gather mounds of records substantiating each and every item reported on your tax return and develop a comprehensive understanding of tax law.

The IRS Tax Audits leave no stone unturned in its mission to determine the accuracy of your tax return in Pompano Beach. If you don’t comply with the Auditors’ wishes, the IRS Tax Audits will recalculate your tax and send you home with a hefty tax bill as your parting gift.

Many taxpayers decide to handle a IRS Tax audits themselves, and discover they may have been “penny wise,” avoiding a representative’s fee, but “pound foolish,” because they received a substantial bill for a significant tax deficiency in Pompano Beach.

You see, IRS Tax Audits are trained to extract more information from you than you have a legal obligation to provide. IRS Tax Audits know that most people fear them and are ignorant of their rights. As a result, they know they can use that fear and ignorance to their advantage.

Rarely do our clients even have to talk with the IRS. Total Tax Solutions handle it all for you so that you need not take time off of your business or job to handle the bureaucracy and paperwork of the IRS Tax Audits. No lost wages or business. You simply forward notification of an IRS Tax audits to Total Tax Solutions and we handle it from A to Z.  The consultation is Free so what do you have to lose, call 954-946-4142 or toll free 855-275-0873.

 

File Back Taxes in Pompano Beach

Total Tax Solutions provides solutions to file back taxes in Pompano Beach

Failing to file income tax returns is a criminal offense.

Not only can Total Tax Solutions restore peace of mind, our Certified Public Accountant and Enrolled Agent in Pompano Beach possess the knowledge and experience necessary to rectify pending tax files for individuals or business owners. If you voluntarily file back taxes through our offices, equitable settlements can be more readily negotiated and tax penalties and interest payments can be substantially reduced.

File Back Taxes returns incur hefty penalties for Pompano Beach individuals and business owners

The first step to rectifying a file back taxes involves the professional preparation of all unfiled returns, a knowledgeable assessment of all payments and penalties owed, and the implementation of Total Tax Solutions strategies to relieve or reduce tax liability.

Delaying to file back taxes will result in the IRS filing on your behalf with little or no consideration for deductions to which you are rightfully entitled. Managing to file back taxes on your own is not recommended in cases of tax delinquency. The successful resolution of tax arrears requires professional guidance and representation. When weighed against the potential loss of time, income, or more serious financial loss, enlisting the skillful leadership of Total Tax Solutions actual savings in the long run.

Free consultation for Pompano Beach residents who need to file back taxes

Whether you have already been contacted by the IRS or state tax department to file back taxes, or if you are seeking IRS representation for an audit, enlisting the specialized services of Total Tax Solutions tax professionals ensures competent representation and an accurate rectification of your tax file.

Contact our office for a discreet and free consultation to learn more.

Unfiled Tax Return Pompano Beach

DO YOU HAVE UNFILED TAX RETURNS? LET US HELP!

If you have unfiled tax returns, you are not alone. Many taxpayers fail to file their tax return for various reasons i.e. business downturn, divorce, illness, insufficient funds to pay the tax liability in full, etc. The Internal Revenue Service is unforgiving. Regardless of the reason for your failure to file, you may be liable for all of the following:

  • Civil penalties for failing to file, which may be assessed on a monthly basis
  • Criminal charges for tax evasion, which can include severe criminal penalties and time in jail
  • Penalties and interest on unpaid and back taxes

Penalties are generally higher for taxpayers with unfiled tax returns versus those who file and fail to pay the taxes owed. We can help.

SUBSTITUTE FOR RETURN (SFR)

If you have unfiled tax returns, the IRS may file a return on your behalf, resulting in far worse consequences for you. The IRS will base your “substitute for return” on information reported only by other sources, such as your W-2 and 1099s, not taking into account your real expenses or exemptions. Adverse consequences caused by the IRS may include:

  • Overstating your real tax liability by not including exemptions or deductions that you would have otherwise been entitled to take
  • Assessing an amount against you equal to your “overstated” tax liability, plus interest and penalties
  • Starting collection actions against you, which may result in placing liens or levies on property or bank accounts

Furthermore, taxes due from a substitute for return are not dischargeable in bankruptcy.

FOR UNFILED TAX RETURN HELP IN POMPANO BEACH, CONTACT TOTAL TAX SOLUTIONS

Our experienced CERTIFIED PUBLIC ACCOUNTANTS AND ENROLLED AGENT provide sophisticated and personalized assistance to domestic and foreign taxpayers when they face complex tax controversies.

For help stopping collection actions for unfiled tax returns, call Total Tax Solutions at (954) 946-4142 or toll free at (855) 275-0873.

File on Time Even if You Can’t Pay

File on Time Even if You Can’t Pay
Do you owe more tax than you can afford to pay when you file? If so, don’t fail to take action. Make sure to file on time. That way you won’t have a penalty for filing late. Here is what to do if you can’t pay all your taxes by the due date.

  • File on time and pay as much as you can.  You should file on time to avoid a late filing penalty. Pay as much as you can with your tax return. The more you can pay on time, the less interest and late payment penalty charges you will owe.
  • Pay online with IRS Direct Pay.  IRS Direct Pay is the latest electronic payment option available from the IRS. It allows you to schedule payments online from your checking or savings account with no additional fee and with an immediate payment confirmation. It’s, secure, easy, and much quicker than mailing in a check or money order. To make a payment or to find out about your other options to pay, visit IRS.gov/payments.
  • Pay the rest of your tax as soon as you can.  If it is possible, get a loan or use a credit card to pay the balance. The interest and fees charged by a bank or credit card company may be less than the interest and penalties charged for late payment of tax. For debit or credit card options, visit IRS.gov.
  • Use the Online Payment Agreement tool.  You don’t need to wait for IRS to send you a bill to ask for an installment agreement. The best way is to use the Online Payment Agreement tool on IRS.gov. You can even set up a direct debit installment agreement. When you pay with a direct debit plan, you won’t have to write a check and mail it on time each month. And you won’t miss any payments that could mean more penalties. If you can’t use the IRS.gov tool, you can file Form 9465, Installment Agreement Request instead. You can view, download and print the form on IRS.gov/forms anytime.
  • Don’t ignore a tax bill.  If you get a bill, don’t ignore it. The IRS may take collection action if you ignore the bill. Contact the IRS right away to talk about your options. If you face a financial hardship, the IRS will work with you.

In short, remember to file on time. Pay as much as you can by the tax deadline. Pay the rest as soon as you can. Find out more about the IRS collection process on IRS.gov. Also check out IRSVideos.gov/OweTaxes.

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