The Taxpayer Advocate Service (TAS) is an organization that operates independently within the Internal Revenue Service (IRS), and exists in order to assist taxpayers experiencing “economic harm.” The IRS defines “economic harm” as a situation where someone is incapable of providing basic necessities for themselves, including housing, food, or transportation. Internal Revenue Service, The Taxpayer
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Tax Gap
The tax gap is the Internal Revenue Services (IRS) approximation of the total amount of taxes outstanding. The calculation of this figure is a massive endeavor and only occurs every five years or so. As of 2006, the voluntary compliance rate through the U.S. was relatively unchanged at approximately 83%. Internal Revenue Service, The Tax
Understanding an IRS Audit
An IRS audit is a review of a business or individual’s tax return to ensure that everything was reported correctly in compliance with applicable tax laws. By law, the taxpayer is only required to pay the exact amount of tax owed, no less and no more. Consequently, if a taxpayer incorrectly reports his or her
Identity Theft and the IRS
Many people are aware of the many pitfalls of identity theft, including the potential credit implications, the hassle of getting new cards and information, and the lackluster financial history with which an identity theft victim is sometimes associated. Yet identify theft also has federal tax implications, namely when it comes to reported income and tax
Franchise Tax Board Audits
The Franchise Tax Board of California (FTB) is like any taxing entity in that it ensures taxpayers compliance through the use of audits. An FTB audit is a formal inspection of your books and records in connection with your personal or business tax returns. The purpose of an audit is to ensure that you as
Hiring a Tax Attorney
Most people think they do not need to hire a tax attorney because they do not have a complex return or tax issue. They have a bookkeeper, accountant or CPA that handles all of their tax filings and answers all of their tax questions. They believe that attorneys are expensive and, in this difficult economy,
The Four Types of Tax Audits
Four Types of Tax Audits and Tax Compliance. Nothing is surer to elicit feelings of panic than receipt of a letter from the IRS and for good reason. Tax issues and penalties can have harsh and sometimes long-lasting impacts on an individual or business’s financial health. While some letters or notices aren’t cause for