Austin Dual Licensed Tax Audit Attorney and CPA
In the heart of Texas, Austin shines as a beacon of innovation, technological prowess, and entrepreneurial zeal. A testament to modern business practices and attendant growth, it narrates tales of progress, with its streets reverberating with the harmonies of live music and the dreams of its citizens. Yet, beneath this vibrant atmosphere, the complex labyrinth of federal tax laws looms large.
In April 2023, the Internal Revenue Service (IRS) unveiled a transformative $80 billion plan to reform its tax enforcement and collection practices, aiming to metamorphose into a “digital first” tax agency. This initiative, part of the Biden administration’s broader strategy, seeks to bridge the tax gap caused by intentionally/fraudulently underreported tax filings and channel the anticipated additional funds towards pressing national concerns like prescription drug prices and climate change.
In Austin, a city known for its bold spirit, residents may occasionally tread close to the edges of these evolving federal tax regulations, navigating its complexities with a characteristic fearlessness. The new plan introduced by the IRS emphasizes a shift towards a more technologically advanced approach, integrating machine-learning technology and data analytics & artificial intelligence to identify federal tax evaders. Such advancements, while promising efficiency, also underscore the importance of meticulous federal tax filings and the potential risks of intentional/inadvertent tax errors.
The Daunting Shadow of IRS Tax Audits
Addressing federal tax disputes in Austin, with its eclectic mix of startups, tech behemoths, and independent ventures, demands a nuanced approach. Whether you're an individual or a flourishing enterprise, challenges like handling overseas income, understanding payroll taxes, or strategizing business transitions with federal tax considerations can surface. The recent IRS overhaul further accentuates the need for vigilance. When faced with an IRS tax audit, the initial impulse might be to swiftly yield to the IRS's requests, hoping for a rapid closure. Yet, such promptness seldom serves the taxpayer's best interests.
In Austin, where the spirit of resilience thrives, even the mere hint of an IRS tax audit can be tremendously unsettling. Yet, beyond the initial concern, Texans must discern between a routine IRS tax audit and the more daunting criminal tax investigation led by the IRS's Criminal Investigation Division (CID). The former seeks to verify the accuracy of tax filings, while the latter delves deeper, aiming to gather evidence to prosecute potential criminal tax charges. As we journey through the intricacies of federal tax audits, understanding these distinctions and their implications becomes paramount for every Texan.
With the IRS gearing up to hire potentially over 100,000 new employees in the next decade, the stakes have never been higher. Hence, it is wise to seek the guidance of a dual-licensed Tax Audit Attorney and CPA, ensuring you navigate IRS intricacies with clarity, defend against potential financial pitfalls, and adeptly handle subsequent collection actions.
For those in Austin and beyond, if you suspect you might have committed an error on your tax returns or wish to understand the implications of the IRS's new direction, reach out to our experienced Dual-Licensed Tax Audit Attorneys & CPAs at the Tax Law Offices of David W. Klasing. You can reach us by completing our online contact form. If you encounter any difficulties during the online booking process, please do not hesitate to contact our office immediately at (800) 681-1295. We are here to assist you promptly and efficiently.
Introducing the Tax Law Offices of David W. Klasing
The Tax Law Offices of David W. Klasing emerge as a beacon of federal tax audit defense excellence, driven by a legacy of notable accomplishments. David W. Klasing, boasting an admirable A+ rating from the Better Business Bureau and an impeccable perfect 10.0 score from AVVO, remains steadfast in his commitment to exceptional tax audit defense representation. In a nation teeming with over a million attorneys and more than half a million CPAs, only an estimated 24,000 professionals have the distinction of dual licensure. Even more exclusive, a mere 3,000 have additionally achieved the esteemed credential of having earned a Master's in Taxation. David W. Klasing, a prominent figure within this elite group, leverages his unmatched academic and nearly three decades of hands-on experience to ardently support our clients through their IRS tax audit challenges.
Texans now have the advantage of access to David W. Klasing's unmatched expertise at our appointment-only satellite office in Austin. Here, we blend legal and federal tax services, offering a holistic approach to IRS tax audits. With transparent hourly billing, our clients can expect clarity at every juncture. Recognizing Austin's vibrant tempo, we've recently unveiled a flexible scheduling system, enabling clients to secure a four-hour flat fee meeting across any satellite location. David W. Klasing will personally travel to any of our virtual offices to meet clients, ensuring they receive a direct and personalized encounter without incurring any additional travel expenses.
At The Tax Law Offices of David W. Klasing, we meticulously analyze each client's financial scenario, sculpting a defense strategy tailored to their needs. Recognizing individual taxpayers' and businesses' unique hurdles, we guarantee a comprehensive solution to every IRS tax audit concern. With the IRS amplifying its enforcement actions, mounting a formidable defense becomes indispensable. Our adept team, fortified with extensive IRS tax audit knowledge & experience, is proficient in neutralizing IRS maneuvers, presenting facts that optimally defend your interests, and striving to curtail assessments of additional federal tax liabilities, and minimizing/avoiding related civil or criminal tax penalties.
Complying with federal tax codes is intricate, especially for business owners, high-net-worth individuals, and those in unique situations like divorce or dual citizenship. Even simple tasks like amended returns or scheduled IRS audits can lead to complex financial and legal scenarios. Recognizing these challenges, the Tax Law Office of David W. Klasing offers specialized guidance. From our Austin, Texas, virtual office, we focus solely on federal tax issues, with an unyielding commitment to leverage our vast experience and credentials to guide you confidently through your IRS tax audit. Access to our services is as easy as scheduling a reduced-rate initial appointment, call us at 800-681-1295, and we will be there to address your federal tax concerns.
IRS Tax Audits: A Comprehensive Guide
The IRS conducts tax audits to ensure taxpayers comply with U.S. tax laws and accurately report their income and deductions. An audit doesn't always imply wrongdoing; sometimes, it's just a routine check. Engaging a dual-licensed Tax Attorney and CPA early in the process will provide invaluable guidance, helping taxpayers understand their rights, while we strive to minimize the scope of the audit, and manage the potential outcomes.
IRS Audit Triggers and Common Reasons:
- The IRS primarily selects taxpayers for audits based on a statistical computerized analysis of their historical tax returns. Each return is scored using the Discriminate Function (DIF) system. The higher the score, the more likely the return is believed to understate taxable income;
- While many believe IRS tax audits are random, they often result from inconsistencies in federal tax returns. For instance, if a taxpayer's lifestyle appears lavish compared to their reported income or makes significant charitable donations with relatively small income streams, these can be red flags for the IRS, ordinarily leading to an IRS eggshell or reverse egg audit. An Eggshell audit occurs when the client commits criminal acts in evading their tax obligations at risk of being discovered by the IRS during the seemingly civil tax audit. A Reverse Eggshell Audit is a disguised IRS criminal tax investigation posing as a civil audit. An IRS technical fraud advisor or agent with the IRS criminal tax division can be pulling an auditor’s strings attempting to develop evidence for a subsequent criminal tax prosecution without putting the taxpayer or their representative on notice;
- Simple tax filing errors, such as transposing numbers or omitting sources of federal taxable income, can also trigger a tax audit. All returns undergo a computer matching process where third-party information, like W2s and 1099s, is reconciled to your federal tax return;
- Businesses reporting consistent losses over several years might also face increased scrutiny, potentially triggering the hobby loss rules or a tax audit;
- The IRS gathers data from various sources, including newspapers, public records, and informants. If they find a mismatch between a taxpayer's perceived quality of life and their reported income, it can lead to further investigation;
- Representation during an IRS tax audit can determine between facing criminal tax prosecution, incurring 75% fraud penalties, or achieving a civil resolution with, at most, 20% negligence penalties. The latter is statutorily required if you owe $5,000 or more in tax after your federal tax audit.
- Ordinarily, three years of tax returns are at issue in an audit. When a 25% understatement occurs, this audit introduces a six-year statute of limitations and a greater likelihood of a pattern of tax fraud discovery;
- It's crucial for taxpayers to retain their tax records, supporting documents, and any correspondence with the IRS for at least three years, though keeping them longer is often advisable;
- If the IRS believes there's been a substantial understatement of income, they might go back six years or more.
IRS Auditing Procedures:
- The IRS adopts a structured approach to tax audits. Typically, a federal tax audit commences with correspondence, where the taxpayer receives a letter detailing the audit's scope and the subsequent steps. This letter might request specific documents, such as bills, receipts, legal papers, loan agreements, financial logs, or insurance documents;
- Types of IRS Audits:
- Correspondence Audit: This type of audit happens entirely through the mail for less complex federal tax audits. You are sent a letter from the IRS notifying you of the tax audit and what kind of documentation, if any, is required. Once you send any necessary documents or records to the IRS, the tax audit will commence, and you will be notified again when it is completed.
- Field Audit: This occurs when an IRS representative comes to you for a face-to-face interview as part of your tax audit. A field audit might be necessary for a few different reasons, often because the records required for the audit cannot be sent by mail;
- Office Audit: Similar to a field audit, an office audit involves a face-to-face meeting. However, in this case, you will visit a local IRS office for the interview. The reasons for each type of tax audit will vary from case to case.
- It's worth noting that a criminal tax investigation by the IRS's Criminal Investigation Division (CID) can commence covertly. If approached unexpectedly by CID agents, it's imperative to exercise caution. They might already possess answers to the questions they pose, hoping to catch individuals off-guard. It would be wise to seek guidance from our Dual-Licensed Tax Audit Attorneys and CPAs before engaging in any discussions with the IRS;
- Post-audit, the IRS will finalize its findings. This could lead to additional tax assessments, penalties, interest, tax refunds, or even a rare no-change audit outcome. Taxpayers have the right to either concur with or contest these findings. If there's disagreement with the tax audit's conclusions, our dual-licensed Tax Litigation and appeal Attorneys and CPAs can provide the necessary assistance.
David's proven proficiency is now available in Austin, Texas, at our appointment-only virtual office, providing both legal and tax services in one place—at a single hourly billing rate. We have just introduced a flexible scheduling option where our clients can reserve a four-hour slot at any of our satellite locations, and David W. Klasing will travel to any of our satellite offices to meet with you personally. We have designed this service to benefit our clients, with no additional travel expenses added to your bill. Call us at 800-681-1295 or complete our online contact form today.
In addition to our fully staffed 19,700 square foot penthouse office in Irvine, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad, Sacramento, Las Vegas, Nevada; Salt Lake City, Utah; Phoenix, Arizona, Albuquerque, New Mexico. We also have virtual offices in New York, New York; Miami, Florida; and Washington, D.C.
Our Austin, Texas (Virtual) office is conveniently located at:
2021 Guadalupe St. Suite 260, Austin, TX 78705
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