IRS and State Representation

In fiscal year 2013, the IRS audited the tax returns of 1.4 million individuals or just one percent of taxpayers nationwide.

With those odds, you might be thinking that, as a taxpayer living in Boston or one of the smaller towns like Belmont, Newton, Needham, Lexington, Watertown, Winchester and Waltham the chances of a state or IRS audit seems pretty low…and that it won’t happen to you.

But what if you’re wrong?

What if that tax return you filed last year is selected for an IRS or State audit?

What if you received one of those IRS or State Notices in the mail? Now, what?

Before you panic about an IRS or State Notice, you should know that the IRS and State send out millions of notices to taxpayers every year. Usually, there’s nothing to worry about, but sometimes it’s more complicated.

…Maybe the IRS thinks you’ve under-reported income or that as a small business owner failed to keep good records by separating business and personal expenses?

…Or you’ve neglected to file your taxes at all and now owe penalties for failure to file and failure to pay without providing reasonable cause.

Whether you’ve been selected for an IRS audit or have a tax dispute with the state of Massachusetts, by law every taxpayer is entitled to IRS representation, as well as state representation.

You could represent yourself, but it’s generally not a good idea–even if you think you know tax law inside and out. And, because, no matter how friendly they seem, IRS auditors represent the IRS. They know that taxpayers don’t always understand their rights and may take advantage of this to obtain more information from the taxpayer than he or she is legally obligated to reveal.

You could end up with an even heftier tax bill or worse.

At Town CPA, we specialize in IRS and State Tax and Audit Representation.

As a certified public accountant and the owner of Town CPA in Belmont, Nune Khachatrian, CPA regularly represents individuals, business owners, executives, and other high net worth clients in tax disputes with the IRS and state of Massachusetts.

She understands tax law, audits, and other tax issues that affect taxpayers like you and knows that the IRS does not select a return for audit solely based on errors or potential problems with it. Instead, tax returns are chosen for audit in a number of ways, including:

• Random selection and computer screening – sometimes returns are selected based solely on a statistical formula.
• Document matching – when payor records, such as Forms W-2 or Form 1099, don’t match the information reported.
• Related examinations – returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit.

When you hire Town CPA to represent you during an IRS audit or other tax dispute, here’s what we do for you:

• Handle all audit correspondence
• Devise a strategy to legally minimize your tax liability
• Take the worry off your shoulders so you can run your business or spend time with family
• Speak on your behalf in order to lower your risk for additional liability
• Appeal an auditor’s decision, if needed.

Professional representation during an IRS and State audit or tax dispute is vital. If you’re involved in a tax dispute with the state of Massachusetts or have received an IRS notice of audit, call Town CPA at 617-484-1838.