Call Now (800) 681-1295
Close

Can IRS and California Auditors Use the Internet to Disprove Your Tax Claims?

Table of Contents

    Many people fail to consider the fact that the IRS and its agents have become particularly adept at searching the Internet for information. Thus, some online business owners are all too willing to deny that they have an e-business or that their traditional brick and mortar company also has an online component. Unfortunately, these individuals often find themselves in difficult, delicate situations as IRS auditors can and do use the Internet and other resources to disprove claims and statements made by taxpayers. If you are caught making an inconsistent statement or lying to the IRS, the odds of facing criminal tax prosecution or a full-scale audit increase significantly.

    If your Customers Can Find Your Company Online…So Can the IRS

    Whether you are running a traditional or an online business, you need to attract customers and clients to keep your lights on. The IRS realizes this fact. Thus, what started out as agents checking the Yellow Pages for businesses and advertisements has now evolved into Google and other searches for businesses. Agents may even search through sites where freelancers and independent contractors can post that their are available for work. Essentially, the IRS will delve into the normal methods by which a customer would locate your business. Furthermore, they may even contact third-parties, like clients and vendors, for information regarding your commercial activities. If you have advertising contracts, referral agreements, or ship goods the IRS could use these real-world and online factors to catch you in a tax lie.

    The IRS Will Also Analyze Your Tax Claims

    The IRS will also analyze the claims you make regarding business expenses and business income. If you make certain large claims for business deductions or tax credits, it may raise the suspicion that an e-business exists. Furthermore, IRS agents are likely to trace credit card transactions to ensure that multiple conduits are not being used to conceal receipts and income. Essentially, IRS agents will use all available sources of information to catch taxpayers in a tax lie. If you are caught lying or making inconsistent statements, there is a real likelihood that you could face criminal tax charges.

    Tax Help Videos

    Representing Clients from U.S. and International Locations Regarding Federal and California Tax Issues

    tax lawyers

    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

    Satellite Offices

    California
    (310) 492-5583
    (760) 338-7035
    (916) 290-6625
    (415) 287-6568
    (909) 991-7557
    (619) 780-2538
    (661) 432-1480
    (818) 935-6098
    (805) 200-4053
    (510) 764-1020
    (408) 643-0573
    (760) 338-7035
    Arizona
    (602) 975-0296
    New Mexico
    (505) 206-5308
    New York
    (332) 224-8515
    Texas
    (512) 828-6646
    Washington, DC
    (202) 918-9329
    Nevada
    (702) 997-6465
    Florida
    (786) 999-8406
    Utah
    (385) 501-5934