I’m tax attorney Steve Klitzner. My practice is limited solely to representing individuals and businesses with IRS problems. And you’ve seen the commercials, and I’m just like those guys, except for one thing. I’m nothing like those guys, because I actually do the work.
What to Expect From an IRS Audit
During an audit, the Internal Revenue Service conducts an examination of a person’s or business’s accounts and financial records to check for compliance with the tax codes. Selection does not mean that an error was necessarily made, only that the IRS wants to verify or gather additional information. IRS Publication 556 fully details the audit process and what to expect.
The Audit Process
The IRS selects taxpayers to audit in several ways — some random and some targeted. Upon selection, the IRS notifies the tax payer by letter. In some cases, they call before sending the letter.
An audit may either be conducted by mail or in person depending on what information the IRS is seeking. An in person audit may be scheduled at home, in your office or place of business, or at an IRS office. IRS agents are instructed to be flexible when scheduling an audit, but maintain the final say over when and where it is held.
How To Prepare For an IRS Audit
If the three letters IRS give you nightmares, you’re not alone. The fear of the IRS is a common emotion and one that will send chills down your spine. The good news is the chances of being selected for an IRS audit are relatively low. However, that doesn’t mean it won’t happen. Therefore, we would like to give you some tips on how to prepare for an IRS audit.
Should You Hire a Professional Tax Attorney or CPA?
An IRS tax audit is a very long and stressful process. In addition, understanding the tax code, for most people, is like trying to read a foreign language. It’s extremely difficult, unless you know what you’re doing. Hiring professional representation will ensure that you have someone representing you who has been educated in tax law and will be better able to speak for you than you could for yourself. Additionally, people sometimes unwittingly reveal too much information, information that isn’t required and that could potentially do more harm than good.
IRS Tax Audit Myths & Misconceptions
If you’ve never been through an IRS tax audit, you probably have some common misconceptions about what actually triggers an audit. Ask ten people what they think would cause an IRS audit and you would probably get ten different answers. Therefore, we thought we would take a few minutes to clear up a few common myths and misconceptions about what does and does not trigger an IRS audit.
Myth #1 – If you e-file, it will increase the likelihood that you’ll be audited.
The process in which the IRS determines which returns should be audited has nothing to do with the way you chose to file your return. E-filing could actually reduce the chances that your return will be audited due to the fact that electronically filed returns are usually more accurate; therefore, if you e-file, your tax return is less likely to trigger an IRS audit.
Lawmakers Can Now Decide to Pass Online Sales Tax Laws
The United States Supreme Court refused to hear a case brought by Amazon and Overstock.com challenging a 2008 New York law requiring online retailers to collect sales tax on purchases by New York State residents. The online retailers had argued that given the number of local jurisdictions with different sales tax rates, the law was overly complicated, unduly burdensome, and restricted the growth of online commerce. The law was upheld by New York’s highest court before the challenge was brought to the Supreme Court.
The Scope of the Decision
New York’s ruling went beyond a 1992 U.S. Supreme Court ruling requiring online retailers to collect sales tax in states where they have a physical presence. Under that rule, a retailer needed to have a physical store or office in a state to be required to collect sales tax. New York’s law included marketing efforts directed at a state and used affiliate marketing as a basis for establishing the company’s presence in a state.
How to Prepare for Tax Season
Tax season is fast approaching, and so is the dread that goes along with it. While the tax code may seem like an endless collection of complicated regulations, lengthy forms, and confusing deadline, getting through tax season can actually be quite easy. All you need to do is carefully and methodically tackle each step of the process before moving on to the next step.
Gather Your Documents
While you can start planning for tax season in December or January, you won’t be able to come up with more than a rough estimate until February. This is because employers have until January 31st to issue the forms that state your final income — W-2s for salaried employees and 1099s for independent contractors. Until then, you may want to start gathering your receipts for charitable donations, business expenses, and any other deductions you plan to claim.
10 Tax Tips: Don’t Make the Same Mistakes as Last Year
As tax season quickly approaches, many households across the country are beginning to gather up their relevant documents and plan their deductions. Filing taxes each year can be stressful. Errors can result in hefty penalties from the IRS and failing to properly document all deductions can cause people to have a much higher tax bill than they should. Here are the top ten tips to help people avoid making errors this year on their tax returns.
1. Consider Delaying or Accelerating Income to Achieve Desirable Tax Brackets
Those who know that they are going to be in the same or a lower tax bracket next year should consider delaying income, such as bonuses, until January to avoid extra taxes at least for this year
What is a Federal Tax Lien?
I’m tax attorney Steve Klitzner. It’s my job to protect folks with IRS problems and to exercise their rights. Now a question that is often asked of me is, “What is a federal tax lien?” Part two to the question is, “How do I get rid of it?”
Well, first of all, a federal tax lien is what the IRS files in the county where you live that’ll protect their interest. If you have any assets or any property, it’ll attach to that property. It’ll also mess up your credit pretty good. Sometimes it can lower it by 75 to 100 points.
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Steven N. Klitzner, P.A. is a tax attorney based in Miami, Florida. He has been practicing tax law for over 40 years, and currently holds a 10.0 rating by Avvo. Mr. Klitzner was appointed to the IRS Service Advisory Council in 2021 and is... 
