The IRS Audit Blog

Posts Tagged ‘representation’

JDS Uniphase Corp. Reports Operating Results (10-Q)

By 10qk. JDS Uniphase Corp. ( JDSU ) filed Quarterly Report for the period ended 2010-01-02. Read more » »

‘Tax Link’ – New York Tax Attorney Sean Chi

Question: What are the normal and customery fee’s charged by a Tax Preparer during an IRS Tax Audit? Insurance was paid.

IRS determination was a no deficiency in income tax due but now we have to pay just about as much in Tax-Examination audit preparation & representation fees for professional services rendered. Originally we paid the tax preparer an Insurance fee to represent us in the event of an Audit.

Answer: If you purchased insurance to cover representation in an audit, the insurance contract should spell out what fees if any you are required to pay. Without knowing more about the audit and the original contract, your question can’t be answered.

How to Prepare for an Audit

You got that dreaded Internal Revenue Service letter? Don’t panic, just prepare.

Surviving an IRS Tax Audit : IRS Audit: Finding Representation

Question: IRS audit question…

You are an accountant and a client of yours is under Audit By The Irs. The Revenue Agent contacts you after she has spent some time investigating the taxpayer’s records. She says that there are certain items that she has not been able to locate and she wishes to review your work papers, retained copies of returns and files.
A. Do you grant her request?
B. Assume that the revenue Agent sent you a letter stating that under Code Section 7602 she has the right to request, review and copy the records and that she is formally requesting them. Do you comply with her request?
C. If you turn the records over under either or these circumstances, do you expose yourself to any potential liability to your client?

Answer: Yes–generally a practitioner is required to provide the records (per IRS Circular 230) unless they believe in good faith and on reasonable grounds that the records or information are privileged.

Source: read more at page 15 http://www.irs.gov/pub/irs-pdf/pcir230.pdf

Taxpayers make £26bn loss on stakes in Lloyds Banking Group and RBS

• RBS shares end the year at 29.2p, well below 50p needed to break even • Lloyds and RBS loss is wider than calculated by National Audit Office The taxpayer begins 2010 with a loss of more than £26bn on its stakes in Lloyds Banking Group and Royal Bank of Scotland, which were bailed out at the height of the banking crisis, illustrating the scale of the problem the government faces in selling its …

Taxpayers Rights Advocate Intro

Question: Is it possible to work in an auditing firm after grade 12?

Hey Everyone! Could anyone who actually KNOWS about it tell me whether it’s possible to look for work in auditing firms like PriceWaterhouse Coopers after grade 12 that is, As Level. Do they accept such a qualification and later provide training? If not, is there any sort of work which one can do right after grade 12 without the need of going to university? Plus, is correspondence study good?Please answer!

Answer: Honestly. Most won’t unless you are actively in college and have some sort of training even if very little.

Firms under pressure from software audits last year

Phil Muncaster, V3.co.uk , Thursday 7 January 2010 at 12:46:00 Forrester report says vendors are out for every last penny they can get Enterprises came under increased pressure from software audits last year, as vendors tried to weather the recession by claiming every last penny to which they were entitled, according to new research from analyst firm Forrester. The firm’s latest report …

Liberty Tax Service

Question: Can the IRS take money out of your checking account to settle what u owe them? Without your permission?

I owe the IRS about $5000 from when I got audited one year. I have $3000 in savings and $1000 in checking and I’m in fear that they will take it one day. I’ve called the IRS and put a hold on my debt because I’m not working right now. I’m currently collecting unemployment and that money in the bank is all I have.

Answer: Yes, they can. It is called a levy and they will send you a letter notifying you. The interest will continue to accumulate at 1/2 % per month.

Creating jobs from my ‘home office’

As I sat across from the IRS person, my right eye began twitching.

Preparing for an IRS audit, Part 3 of 3