Law Office Of Mary E. King, P.L. Attorney and Counselor Of Law Because Life Should be Less Taxing ® 941-906-7585
941-906-7585 Florida Bar Member
Sarasota County Bar Member

Preparing For Several Types Of IRS Audits

Getting an IRS audit can be quite frustrating. However, if you know your rights, then it will be a lot easier for you to deal with an audit. It is a good idea to get legal help for audit. In fact, you should contact a professional as soon as you get a notice saying that you have been audited. Ignoring the problem will not make it go away.

Preparing For Several Types Of IRS Audits

Before you get IRS audit help, it is important to note that there are four types of audits. You will have to prepare differently for each type of audit.

Correspondence Audits

This is an IRS audit that is less common than the other types of audits. The Internal Revenue Service will send you a letter in the mail saying that you need to send in a certain part of your return. They may ask you questions about your charitable deductions and ask you to send in your receipts. This will typically not cause any issues if you are able to send in the information that they request.

In fact, if you have a legitimate tax return and the other necessary information, then you may... read article

Attorney Mary E. King

Bitcoin Owners Prepare For Coinbase Summons And IRS Audit Trouble

With the rapid growth of technology and changing standards in building out a digital global economy, domestic laws surrounding new forms of convertible currency can be almost as dynamic as its value in the markets themselves. It is important for investors and any other applicable parties who may be interacting with these new forms of currency in the virtual economy to understand tax laws involved with these new systems of money and how it all translates to the paperwork at tax time.

The volatile virtual currency bitcoin, which trackers like CoinDesk show can sometimes have spikes in price of hundreds of dollars in a matter of weeks, peaked at a value over $1,000 in early January 2017. This is a dramatic contrast to the virtual currency’s humble beginnings several years ago. Small amounts purchased at its inception in 2009 are now worth hundreds of thousands of dollars.

This revolutionary new form of currency has become perhaps surprisingly widespread and useful. Unfortunately, in doing so it also became a concern for taxpayers, and particularly for those individuals or entities who may now owe taxes on past virtual transactions.

Ever since the... read article

Attorney Mary E. King

Different Types Of IRS Audits Require Different Preparation

Dealing with IRS audits and all of the baggage that comes with them is an exceedingly difficult task for practically anyone, especially since there are many different types of IRS audits. Each of these audit types require different preparation techniques. Through different settlement programs and legal defense angles, your IRS debt issues can be properly addressed and successfully closed. Here is a closer look at how different types of IRS audits require different preparation.

Field Audit

When you are faced with an audit, it's important that you're well prepared. A field audit may just be the most daunting of the many types. The reason for this is that the IRS will visit you at your office or home. It's important to note that the audit isn't limited to a certain amount or type of items. While these types of audits are rarer than the others, they occur because the IRS is specifically looking for something and are practically certain that they will find it. Legal representation is essential when preparing for a field audit.

Audit Through Correspondence

A correspondence audit tends to be a less severe type of audit, meaning that there isn't a lot of preparation that needs to take place beforehand. With... read article

Attorney Mary E. King

Top Reasons People Get Audited

Nobody wants to get in trouble with the IRS, but there is help available for people who are dealing with fines and penalties. While it may be possible to reduce you overall tax bill and arrive at a reduced settlement, it is far better to avoid the audit and fines to begin with. The first step in avoiding an audit is learning what the IRS looks for and what activities can trigger an audit.

irs audit preparation

Forgetting to Claim Income
It is not just up to you to report your income. Employers are required to report the earnings of independent contractors and their employees. Additionally, people may also claim payments made to you if they’re tax deductible. In addition to reporting income, you must also report dividends, interest income, and other earnings. Failure to do so will result in penalties, fines, and possibly an audit.

Excessive or Creative Business Expenses
There is a bit of leeway when it comes to business expenses, but you should take care with every deduction. Occupational codes are routinely used to determine what’s normal and what may be excessive. If your expenses are not in line with your industry,... read article

Attorney Mary E. King

How Should Tax Records Be Kept? The Answers Are Surprising

How long to keep your tax records around is a common question with no simple answer, however to avoid being on the hook for serious tax debts accurate long-term record keeping may be required.

A general guideline is tax records should be kept for a minimum of 3 years if you live in a state that does not have an income tax such as Florida, or four years if your state does have an income tax.

Those dates are posted because the IRS has three years in which they can audit you for a given tax year, and in the case of states that have income taxes, they may share your tax information with the state should the state request them for up to four years.

However there are many situations when having your tax records for much longer is advisable. For example things can get complicated when the IRS is looking at records related to home sales.

Lets say that you have recently sold a home that you purchased back in the 80s. During an audit the IRS may want to review the original closing statement from the time of purchase, any refinancing closing statements as well as any statements related to... read article

Attorney Mary E. King

What Triggers An IRS Audit?

Of the things Americans fear, few are worse than the dreaded IRS audit. An audit is an inquiry into a tax return made by the Internal Revenue Service. The IRS has a three year window in which to audit a return, leaving many people, especially individuals who self-filed, feeling constantly on edge. There is a method to the madness, however. While the process may seem random, many IRS audits are specifically singled out due to suspicious deductions, activity or income levels. Here are several entries on a tax return that might pique the attention of the IRS.

Filing a Schedule C, a form used for noting profits and losses from business, can occasionally be a red flag. While the form itself won’t attract attention, how it’s used might. If you have taken substantial losses more than three out of the last five years on a home business, you might be triggering an audit. This risk is amplified when a taxpayer takes a home office deduction in conjunction with business losses.

Large charitable deductions also commonly increase audit risk, especially for taxpayers with a modest income. Should you donate large amounts to charity and choose to take the Schedule A deduction,... read article

Attorney Mary E. King

12 Areas That The IRS Might Raise Your Chances Of Being Audited

Even though the odds of being audited are low there is still a decent chance of a little more than 1% that an individual tax return will be audited. There are various factors that will increase your chances of being audited by the IRS which includes but is not limited to income level, whether there is an income discrepancy, losses that were claimed, the business that you are engaged in or various math errors. Just being aware of these red flags will lower your chances that the IRS will audit you.

1. Too Much Income

The individual rate of being audited by the IRS is 1.11% these odds will increase for higher income earners. Statistics show that people with an income of 200,000 or more per year will have an audit percentage rate of 3.93% . If your income is more than a million dollars than there is a one in eight chance that you will be audited. Anything that is less than 200,000 will drop the audit rate significantly. The higher the increase of income that is shown on an income tax return the higher the rate of an audit by the IRS.
... read article

Attorney Mary E. King

IRS Tax Lawyers Solve Your Tax Problems

Many people from all walks of life can end up with unwanted attention from the Internal Revenue Service. From the average Joe to self employed professionals to officers in large corporations. Even the odd politcian here and there ends up in the spotlight for serious tax problems.Further more tax problems also come in all shapes and sizes with many causes – everything from not filling, filling incorrectly, owing back taxes, payroll tax problems or even criminal tax evasion.

The one thing troubled taxpayers have in common is not their problems but the solution. IRS Tax Lawyers. IRS tax lawyers have the knowledge and experience to get federal tax problems back under control.

It’s important to note not every tax problem is the same, not every resolution will be the same, but overall there are a few main programs tax lawyers will relay on for many cases and they include most notably the offer in compromise, innocent spouse relief, installment agreements, currently not collectable or hardship status, penalty abatement, bankruptcy protection and reasonable cause.

A skilled IRS tax attorney will know which of these programs will be the correct choice depending on the circumstances the taxpayer is in. Many people have seen... read article

IRS Problems Can Hurt More Than Your Financial Life

Are you worried about your IRS problem? Losing sleep? Join the club. I hear that a lot. People will sit up at night and let their IRS problems eat away at them, night after night…causing them to lose sleep.

Is your IRS problem worth sacrificing your health…or your life? Stress can be a killer. Literally. Stress can lead to heart attack, hypertension, stroke, cancer, diabetes, depression, obesity, eating disorders, substance abuse, ulcers, irritable bowel syndrome, memory loss, autoimmune diseases (e.g. lupus), insomnia, thyroid problems and even infertility.

Procrastinating and hoping that your IRS problems will just go away is causing you a boatload of stress…But chances are that you may not have considered what that stress is doing to your body on a long-term basis.

What about the effects on your marriage? Numerous studies have shown that the money problems are the #1 source of arguments in marriage. Money problems caused by credit card debt, loss of a job, unforeseen expenses – you name it...all of these can be stressful on a marriage. But if you toss an IRS problem into the mix, you may have a recipe for disaster.

The IRS has more far-reaching power than any collection agency could. So... read article

What To Do If You Disagree With An Audit

Did you know that you have the power as an individual taxpayer to appeal almost any decision made by the IRS? In fact, you can appeal audit findings, penalties and interest, rejected offers-in-compromise, liens, seizures, garnishments and other collection actions.

When You Cannot Appeal. According to the IRS, “Appeals is not for you if:

- Your only concern is that you cannot afford to pay the amount you owe.

- The correspondence you received from the IRS was a bill and there was no mention of Appeals.” So in these two instances, an appeal would be a premature action to take.

If you are concerned that you cannot afford to pay the tax you owe, there are channels to go through before you would begin the appeal process. For instance, you could work with an attorney and make your case to the IRS that your situation qualifies for one of these tax debt payment methods:
-Non -Collectible Status


-Installment Payment Plan

-Partial Payment Installment Agreement

-Tax Bankruptcy
If an Offer-in-Compromise is the... read article

Attorney Mary E. King

AVVO Rating 10 out of 10 Attorney Mary King A+ better business bureau rating 5 out of 5 rated Member Florida Bar AV Rated
espanol Tax Relief Videos Tax Relief Videos Watch Now