New York Dual Licensed Tax Audit Attorney and CPA
In the pulsating heart of America, New York stands as a testament to ambition, innovation, and relentless enterprise. Its iconic skyline narrates tales of financial prowess, and its bustling streets resonate with the dreams of millions. Yet, beneath this facade of success, the intricate web of federal tax laws poses a daunting challenge. In this city that never sleeps, where businesses thrive, and dreams manifest, there's a subtle undercurrent suggesting that New Yorkers might occasionally overlook the complexities of these federal tax regulations in their pursuit of greatness.
Receiving a notification of a federal tax audit from the IRS can send shivers down the spine of even the most seasoned New Yorker. If not navigated correctly, such an audit can, at best, lead to severe assessments of additional federal tax penalties & interest, to at worst, exponentially severe criminal tax charges. The looming threat of these consequences can strip you of your peace of mind, casting a shadow over your daily life and aspirations.
Federal tax disputes can often be challenging, even in the most straightforward scenarios. It can be downright perplexing if you're dealing with an unusual tax circumstance in New York. Whether you're a business or an individual taxpayer, you might require assistance with income earned overseas, managing payroll taxes, or strategically planning business succession with tax considerations. In the face of an IRS tax audit, your initial reaction may be to acquiesce to the IRS's demands, hoping to put the ordeal behind you swiftly. However, this approach seldom works in the taxpayer's favor. It's imperative to consult with a dual-licensed Tax Audit Attorney and CPA, as early in your audit as possible, who can provide invaluable insights into your rights, ensuring that the IRS doesn't exploit your fears and unfamiliarity with the intricacies of federal tax laws.
In the vast expanse of New York's legal and financial landscape, The Tax Law Offices of David W. Klasing stand as a beacon of unparalleled expertise. This isn't just another legal office in the city; it's a nexus of tax proficiency led by one of the nation's most uniquely qualified civil and criminal tax controversy defense professionals. While the nation boasts approximately 1.1 million attorneys and 560k CPAs, an estimated mere 24k hold both prestigious designations. Dive deeper, and you'll find that an even smaller elite group, roughly 3,000, have additionally earned a Master's in Taxation. David W. Klasing is a proud member of this exclusive cadre.
New Yorkers can now access David W. Klasing's unmatched expertise at our New York appointment-only virtual office. Here, we offer legal advice and a holistic approach to federal tax audits by seamlessly merging legal and tax services under one roof. And in the spirit of transparency, our services are billed at a clear hourly rate. Recognizing the bustling pace of New York and the value of time, 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, our team meticulously studies each client's financial and tax situation to craft a tailored defense strategy. Recognizing that the defense for an individual taxpayer differs from that of a business, we ensure that every facet of your federal tax situation is addressed. With the IRS aggressively pursuing convictions, often dedicating significant resources to secure judgments, countering with an equally robust civil or criminal tax defense is crucial. Our seasoned Dual-Licensed Tax Audit Attorneys and CPAs are well-versed in all the tactics employed by the IRS, enabling us to present facts in a manner that optimally defends your interests, aiming to reduce tax liabilities, interest, and associated civil or criminal tax penalties.
Especially in cases where the IRS alleges intentional tax evasion, relying solely on a CPA will leave critical gaps in your defense, particularly in criminal tax cases. At the Tax Law Office of David W. Klasing, we have extensive civil and criminal tax law experience, including nearly three decades audit defense experience, cementing our reputation as an award-winning tax law firm with a long record of positive results. Access to our services is as easy as scheduling an appointment. Or call us at 800-681-1295, and we will be there to address your federal tax concerns.
IRS Tax Audit: An Overview
An IRS tax audit is a thorough review of an individual's or organization's federal tax returns to ensure the accuracy of the reported financial information. With over 230 million tax returns filed yearly, the IRS employs sophisticated computerized statistical protocols to identify potential discrepancies in federal tax returns. This system cross-references the information submitted by taxpayers with data provided by third parties, such as financial institutions, individuals, and businesses. If a taxpayer's return is flagged due to these irregularities or other reasons, the IRS decides whether a more in-depth federal tax audit is warranted.
Depending on the specifics of the submitted federal tax information, a taxpayer might receive a notice indicating that an IRS agent wishes to delve deeper into certain records. For instance, any signs of unreported revenue would quickly draw the scrutiny of an IRS examiner, potentially leading to a more comprehensive tax audit or a covert CID investigation, potentially leading to stringent civil and criminal tax penalties.
Why Might You Be Audited?
- Statistical Analysis: Every federal tax return undergoes a computerized statistical analysis by the IRS. Returns are scored based on their likelihood of understating taxable income. The higher the score, the more likely the return is to be audited;
- Mismatched Information: Tax returns are cross-referenced with third-party information, such as W2, 1099 forms, etc. Discrepancies between your tax return and this data can trigger an IRS tax audit;
- Lifestyle and Income Discrepancies: A noticeable disparity between your reported income and financial spending habits, like large charitable donations, can raise IRS suspicions. Paying off huge debts with deficient historical reporting of income is also a red flag which ordinarily leads to a high-risk IRS eggshell or reverse egg audit;
- Business Reporting Anomalies: Continuous reports of business losses or sudden downturns in business performance can draw IRS attention. Multiple years of reported business losses might also trigger an IRS tax audit;
- Clerical Errors: Simple errors, like transposing numbers or adding/omitting zeros, can lead to discrepancies in your federal tax return and result in an IRS tax audit.
Note: Being represented will make all the difference between facing criminal tax prosecution and paying 75% fraud penalties versus a civil resolution with, at most, 20% negligence penalties that are statutorily required if you owe $5,000 or more in tax following your federal tax audit. At the Tax Law Offices of David W. Klasing, our dual-licensed Tax Audit Attorneys and CPAs possess the expertise to address statistical anomalies, reconcile mismatched information, and provide guidance on lifestyle and income disparities. We're adept at identifying and rectifying business reporting anomalies and clerical errors, ensuring your federal tax affairs align with IRS expectations.
Types of IRS Tax Audits:
Correspondence Audit: The IRS sends a letter requesting specific documents to verify certain details on your federal tax return. It's often resolved by mailing the requested information to the IRS agent. If you lack the necessary records to validate the transactions in question, or if there were significant errors or intentional misrepresentations in your federal tax return, it would be wise to seek professional representation urgently. Our adept dual-licensed New York Tax Attorneys and CPAs will strive to ensure that the audit remains a financial matter and doesn't escalate into an exponentially severe criminal tax prosecution;
Office Audit: An on-site IRS office audit is a meticulous process where the agent conducts an in-depth interview, rigorously assessing the positions taken on your federal tax returns and your ability to substantiate them. Every deposit in both personal and business accounts you oversee is deemed taxable income unless demonstrated otherwise. Similarly, any deduction claimed is considered a nondeductible personal expense unless justified. You will face civil penalties and even potential criminal tax exposure if you cannot prove that your tax return was correct or convince the auditor that any substantial mistakes you made were in good faith, not Badges of Fraud. At The Tax Law Offices of David W. Klasing, we have a proven track record of providing successful audit representation for many types of industries, entity types, estates, trusts, businesses, and individuals in office audits all over the nation and are indispensable in getting you safely through a high-risk Eggshell or Reverse Eggshell, Office Audit;
Field Audit: An IRS field audit is an expansive, meticulous, and notably high-risk examination. In such audits, the assigned IRS agent might request to tour your business or home, delving into potentially every detail on your personal or business tax returns. Given the profound scrutiny of field audits, it's imperative to have adept representation. Engaging with the Tax Law Offices of David W. Klasing in New York provides you with the guidance of our dual-licensed Tax Attorneys and CPAs, ensuring your financial well-being and personal liberties remain safeguarded.
What Happens at The End of an IRS Tax Audit?
After a federal tax audit concludes, the IRS will present its findings in a detailed report. This report will outline proposed changes, potential tax penalties, and any interest due. It often references the Internal Revenue Code and other authoritative sources to substantiate these proposed changes. In some instances, they may deem the tax return accurate, leading to no changes or, on rare occasions, a refund. However, if significant indications of fraud are detected, the case might escalate to the IRS's criminal investigation division (CID), consequently leading to highly worrisome criminal tax prosecution.
If faced with an IRS audit report, it's crucial not to make hasty decisions under pressure. We strongly advise against signing documents you don't fully comprehend, believe to be unfair, or deem incorrect. Always take the time to consult with knowledgeable counsel to review the proposed changes thoroughly. Remember, the initial report isn't always the final word. Federal Tax law is intricate, and interpretations can vary. Our seasoned dual-licensed Attorneys and CPA will help you decide whether to accept the IRS's proposed changes or if an appeal or court tax litigation serves your best interests.
Why Trust the Tax Law Offices of David W. Klasing?
In the bustling metropolis of New York, where the intricacies of federal tax laws intertwine with the complexities of business and individual financial landscapes, the Tax Law Offices of David W. Klasing stands as a beacon of unparalleled proficiency and dedication. David W. Klasing, with an impeccable "A+" rating from the Better Business Bureau and an unblemished 10.0 AVVO score, has carved a niche in federal tax defense, offering both civil and criminal tax representation.
Among the vast sea of attorneys and CPAs in the nation, only a select few can boast dual licensure. Even fewer, a mere 3,000, have the esteemed privilege of having earned a Master's in Taxation. David W. Klasing, a member of this elite group, brings academic excellence and over three decades of hands-on experience to the table, ensuring that our clients are shielded with the best defense against federal tax challenges.
Our boutique firm, with a satellite office nestled in the heart of New York, is a harmonious blend of award-winning Tax Attorneys and CPAs. With a collective experience spanning over three decades in tax, business law, and accounting, we are equipped to navigate the most convoluted federal tax conundrums. Recognizing the anxiety and stress that interactions with agencies like the IRS can induce, we prioritize transparent, consistent communication to alleviate your concerns and secure the most favorable outcomes. When you entrust us with your federal tax audit challenges, you're not just hiring a firm but partnering with a dedicated team that will tirelessly champion your cause.
David's proven proficiency is now available in New York at our appointment-only satellite 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, and Albuquerque, New Mexico. We also have virtual offices in Austin, Texas; Miami, Florida; and Washington, D.C.
Our New York (Virtual) office is conveniently located at:
14 Wall St. Manhattan, NY 10005
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More Commonly Asked Tax Audit Questions
- How should Criminal Tax Counsel handle Tax Audits?
- How to survive audit when I cheated on return being audited
- What is an eggshell audit?
- What is a reverse eggshell audit?
- Why is a reverse eggshell audit dangerous for a taxpayer?
- Warning signs of a criminal referral from an IRS audit
- Effective tax defense counsels goals in an eggshell audit?
- How are the 4 goals and outcomes 1 and 2 best obtained?
- What are the possible outcomes of an eggshell audit?
- Is it my right to know why I was selected for examination?
- What can I do to prepare for an audit?
- What is an IRS civil examination?
- How IRS decides which tax returns are audited
- What are my appeal options if I disagree with IRS?
- What are my basic taxpayer rights if the IRS audits me?
- Options if I am unable to pay at the conclusion of audit
- What a 30 or 90-Day Letter from the IRS means
- What is involved with appealing disagreements?
- Rights to disagree with IRStaxauditor'sss findings
- Can I stop the IRS from repeatedly auditing me?
- Can I have the examination transferred to another area?
- Can I record my IRS interview and is it a good idea?
- How many years of returns are at risk during an audit?
- Common reasons for the IRS to conduct a tax audit
- How to avoid negative consequences from an IRS interview
- Have to agree to interview by taxing authority directly?
- Are all audits the same?
- What should I do if the IRS is investigating me?
- What if I don't respond to a taxing authority audit notice
- Your rights during an IRS tax audit
- Risks of attending an IRS audit without a tax lawyer
- Most common audit technique used by taxing authorities
- Don't go into an IRS audit without representation
- Why hire an attorney to represent me in an audit?
- Why hire David W. Klasing to represent me in an audit
California Sales Tax Questions and Answers:
- Common issues encountered during sales tax audit
- What is a sales tax audit?
- Disagreeing with business audit conclusions
- Timeline to file Petition for Redetermination?
- What should Petition for Redetermination contain?
- Is the appeals conference formal or informal?
- Appeals Division's Decision and Recommendation
- Are a mark-up percentage and a profit margin the same?
- Problems with the mark up audit
- Can State Board of Equalization ignore my business records
- What is a sales tax deficiency determination?
- Business being audited for sales tax. Should I be worried?
- Audit determined fraud to avoid sales and use tax
- Definition of "sale" for California Sales Tax
- What do California sellers need to know about sales tax?
- How do I apply for a sellers permit?
- What are my obligations as a permit holder?
- What is sales tax?
- What is tangible personal property?
- What is a sale?
- What are total gross receipts?
- What is use tax?
- Who is responsible for paying the use tax?
- Who is a retailer engaged in business in California?
- Who is a qualified purchaser?
- Do I need a Certificate of Registration Use tax?
- Do I need a Use Tax Direct Payment Permit?
- What types of sales are exempt from sales tax?
- How are Internet Transactions Taxed?
- How is California sales or use tax determined?
- What is the statewide sales and use tax rate?
- Are there other local and district sales and use taxes?
- Total sales and use tax rate calculation
- How to protect against successor liability in California
- Recourse when issued California sales tax liability notice
- CA Sales Tax liability extend to purchasers/successors?
- Waiting Until Audited to Take Action on Tax Matters
- Sales tax records needed in California
- What are California's sales and use taxes?
- Why does the State of California audit businesses to ensure compliance with sales and use taxes?
- How does the state determine whether to audit my business?
- The BOE reviews the purchase invoices of my business
Questions and Answers for Criminal Tax Representation
- When tax defense counsel parallels tax crime investigation
- Guilty of tax obstruction by backdating documents?
- To be found guilty of tax obstruction must a person actually be successful in impeding the IRS's functions?
- Help! The Document I Gave the IRS Had False Information
- Tax crime aiding or assisting false return IRC §7206(2)
- What is the crime known as tax obstruction § 7212?
- What is the difference between tax perjury and tax evasion?
- What is the tax crime commonly known as tax perjury?
- What is a Klein Conspiracy?
- Increased possibility of civil action in IRS investigation
- Am I Guilty of Tax Evasion if the Law is Vague?
- What happens if the IRS thinks I committed tax crimes?
- What are ways to defend against a tax evasion charge?
- Difference between criminal tax evasion and civil tax fraud
- What accounting method does the IRS use for tax fraud
- Can I Change Accounting Method to the Accrual Method
- What is the willfulness requirement for tax evasion?
- I didn't know I committed tax fraud. Can I get off?
- Concealed assets from IRS. Can I avoid tax evasion charges
- How government proves I willfully engaged in tax evasion
- What is the venue or court where a tax crime case is heard?
- Must the IRS prove tax crimes beyond a reasonable doubt?
- Is it a crime to make false statements to the IRS?
- Will the IRS overlook my tax evasion if it's minor?
- Failed to tell IRS about my nominee account
- Audit risk with cash based business transactions
- How to defend a client charged with tax evasion
- Is it tax evasion if I didn't file income tax return?
- Government says I attempted to evade my taxes. Now what?
- I forgot to pay my taxes or estimated tax. Is this a crime?
- Government proof I "willfully" failed to pay taxes
- 5 Ways to Respond to Tax Evasion Charges
- Being audited after using a tax professional
- Rules for what an IRS agent can do while investigating me
- How tax preparers, attorneys and accountants are punished
- How the IRS selects tax crime lead for investigation
- How does the IRS prosecute suspected tax crimes?
- Does IRS reward informant leads for suspected tax crimes?
- How the government proves deficiency in a tax evasion case
- Do prior tax crimes factor into new IRS tax convictions?
- Requesting conference before investigative report is done
- Requesting conference after IRS Special Agent Report
- What are my rights during an IRS criminal investigation?
- Avoid prosecution for tax crime with voluntary disclosure?
- Defense tactics that make it hard for to prove willfulness
- How a tax attorney can stop your criminal tax case?
- What can you generally tell me about tax crimes?
- Continuing filing requirement with investigation pending
- Federal criminal code crimes that apply to tax issues
- Penalty for making, subscribing, and filing a false return
- CID special agent's report for criminal prosecution
- What is the discovery process in a criminal tax case?
- What the IRS includes in indictment for tax case
- What is the hardest element of a tax crime to prove?
- IRS methods of gathering evidence to prove tax crime
- What does a grand jury do in IRS tax crime prosecution?
- Failure to keep records or supply information
- Failure to make a return, supply information, or pay tax
- What is attempting to evade payment of taxes?
- What is income tax evasion and how is it punished?
- What is attempted income tax evasion?
- What is the crime of failure to pay tax? What is punishment
- Crime of making or subscribing false return or document
- Criminal Investigation Division investigation tactics
- Tax crimes related to employment tax forms and trust funds
- Tactics to defend or mitigate IRS criminal tax charges
- How the IRS generates leads about suspected tax crimes
- What is the crime" evasion of assessment" of tax?
- Specific examples of "attempting" to evade tax assessment
- What is the so-called Spies evasion doctrine?
- Does overstating deductions constitute tax evasion?
- Is it tax evasion if my W-4 contains false statements?
- IRC §7201 attempt to evade vs. common-law crime of attempt
- What are the penalties for Spies tax evasion?
- How government proves a taxpayer attempted tax fraud
- What is a tax that was "due and owing."
- What is evasion of assessment for tax liability?
- Is evasion of assessment different from evasion of payment
- Does the IRS have a dollar threshold for tax fraud?
- What is the IRS burden of proof for tax fraud convictions?
- Are Tax Laws Constitutional?
- What is the source of law that defines tax evasion?
- Does section 7201 create two distinct criminal offenses?
- Does tax evasion definition include partnership LLC
- What if I helped someone else evade taxes?
- Is it illegal to overstate deductions on my tax return?
- Is it illegal to conceal bank accounts from the IRS?
- Do later losses justify prior deductions?
- Common reasons the IRS and DOJ start investigations
- What is the Mens Rea component of tax crimes?
- What is a proffer agreement and what are the risks?
- Why to have an attorney to review a proffer agreement
- Why enter into a proffer agreement?
- Limited use immunity from proffer agreements
- Difference between civil and criminal fraud allegation
Questions About Delinquent Payroll Taxes and Trust Fund Recovery Penalty
- What happens if an employer continues to incur new payroll tax liabilities?
- California Employment Taxes Basics
- How Does the IRS Develop an Employment Tax Fraud Case from the First Indication of Fraud to a Criminal Indictment?
- Can more than one person be considered responsible by IRS
- How unpaid employment tax payments are allocated
- When a corporate officer is considered a responsible party
- Examples of trust fund recovery penalty determinations
- Failing to pay employment taxes after notice is given
- How to determine responsible person for trust fund recovery
- Assessing trust fund recovery penalty and option to appeal
- What is the trust fund recovery penalty?
- What are the penalties for failure to pay employment taxes
- When am I considered liable for company's employment taxes