Articles Posted in TAX AUDIT

IRS Tax Audit Rate Increase for Los Angeles area Taxpayers and Businesses.

Long Beach Tax Attorney -The IRS continues to make strong progress in a number of key tax collection, IRS tax audit and tax enforcement areas. Taxpayers in the Los Angeles area including Pasadena, Long Beach, Sherman Oaks, Woodland Hills, Santa Monica, Redondo Beach, Torrance, Gardena, Santa Ana, Irvine, Anaheim, El Monte and Palmdale received more IRS Tax audit notices than in prior years.

The IRS tax audit, tax collection and IRS tax enforcement efforts increased again last year. IRS audited 84 percent more returns of individuals with incomes of $1 million or more than during 2006. Overall, IRS tax enforcement revenue reached $59.2 billion, up from $48.7 billion in 2006 and nearly $34.1 billion in 2002.

Los Angeles IRS Tax Audit for Foreign Income Tax Attorney
Los Angeles Tax Attorney – Many IRS taxpayers located in Los Angles and California have taxable income from foreign sources. IRS is a member of an international tax enforcement and collection program to provide comprehensive IRS tax audit of returns of domestic taxpayers engaged in substantial international activities. IRS district tax directors in Los Angeles, Orange, San Diego, San Francisco, Pasadena, Glendale, Irvine, Torrance and Long Beach have jurisdiction of IRS tax returns audited, while agents of the Office of International Operations provide specialized assistance and participate with the IRS district tax agents in examination.

If a California IRS taxpayer who receives a request to produce foreign-based documents relevant or material to the tax treatment of an examined item fails to comply within 90 days, the requested material may be held inadmissable as evidence in IRS tax court. This rules does not apply if the taxpayer shows reasonable cause for failure to produce the documents.

IRS Tax Notice to Taxpayer for IRS Summons
Los Angeles Tax Attorney- The IRS tax code states that the summons “shall provide such other information [ apart from the name of the taxpayer] as will enable the person summoned to locate the records required under the summons. If the third party is a designated record keeper, the taxpayer may move in court to quash the summons. Nevertheless, the record keeper is to proceed to assemble the summoned records upon receipt of the summons and be prepared to produce the on the date specified for their examination. A record keeper is entitled to reimbursement for its costs, regardless of whether the summons is enforced.

Los Angeles, Pasadena, Long Beach, Torrance, Orange and Riverside area taxpayers who have been contacted by IRS Tax Summons should contact IRS tax attorney to resolve their tax problems.

Los Angeles IRS Tax Audit – Tax Attorney Production of Internal Revenue Service Documents

California Tax Attorney – During the coarse of an IRS tax audit, the IRS taxpayer may request documents from the Internal Revenue Service. Under a specific statute, the IRS taxpayer is entitled to inspect his IRS tax return, including amendments, supplements, and attachments.

In addition, Los Angeles, Long Beach, Torrance, Orange, Riverside, San Jose, California taxpayers may force the Internal Revenue Service to produce its manuals of instructions for revenue and special agents, since these are relevant to the possible improper use of the summons to aid an IRS criminal prosecution or IRS tax fraud; the IRS manuals may not be suppressed as privilege. The manuals are not exempt from disclosure under the Freedom of Information Act.

California IRS Offices to Contact Third Parties for IRS Tax Audit and IRS Tax Collection

Los Angeles Tax Attorney – In 1998, the Congress amended Code Section 7602 to prohibit Internal Revenue Service employees including IRS Agents and IRS Auditors from contacting third parties with respect to the taxpayer’s IRS tax liability without providing reasonable advance notice to the taxpayer that third-party contacts may be made.

Most IRS tax attorneys and tax lawyers who resolve tax problems were concerned that (1) that such contacts by the IRS may have negative effect on the taxpayer’s business and could damage the IRS taxpayer’s reputation in the community, and (2) that taxpayers should have the opportunity to resolve his tax problems through his tax attorney before the IRS contacted third parties.

IRS Tax Attorney says IRS Tax Audit for Los Angeles and California Residents will increase.

IRS, including the IRS offices in Los Angeles and throughout California, is likely to get higher budget for tax collection enforcement activities according to the Internal Revenue Service. Tax attorneys and advisors to the President have stated that Congress will appropriate over 11 Billion dollars for IRS. A large portion of the IRS budget will be dedicated towards IRS’ expenditure for tax collection enforcement.

In addition, IRS plans to increase tax audits for higher wealth individuals including taxpayers in Los Angeles, Orange and Riverside County earning $100,000 or more, and especially among those making $1 million plus. The number of IRS tax audits among the million dollar group in Los Angeles and metro California regions increased 84 percent in 2007 from the prior year.

Betting on the Los Angeles Lakers to win the NBA title this year? How about the Los Angeles Dodgers winning the World Series? If you have gambling winnings, IRS wants to tax you.

Payors of $1,200 or more on winnings from bingo or slot machines, or $1,500 or more from keno, must file information returns on Form W-2G with the service center by February 28 following the calender year in which the winnings were paid.

Beginning this year the Internal Revenue Service will require all poker tournament sponsors to report tournament winnings of more than $5,000. Casinos will also implement federal withhold 25 percent taxes from gambling winnings.

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