IRS Compliance Review

IRS audits are on the rise

Over the past couple of years, in an effort to increase tax revenues, the Congress mandated the US Treasury and the Internal Revenue Service to enforce compliance with the IRS tax Code.    In Response, the IRS has launched new and expanded audit programs aimed at identifying, pursuing or even prosecuting non-filer and non-compliant individuals and businesses.  

Taxpayers are frequently asked to provide documents substantiating items of income, expenses, deductions and credits reported on their returns.  Failing to do so can result in expansion of the audit scope into multiple, assessment of taxes, penalties and interest and in some cases can bring about civil and criminal penalties including imprisonment.

Know what's in your tax return

If you knew signing an inaccurate tax return can put you in jail, will you try to understand what's in your tax return before you sign it?  Understanding a tax return with multiple schedules and complicated tax computations can be a daunting task.  Yet, you are expected by the Government to acknowledge under penalty of perjury that your return is complete and accurate.  Sounds quite unfair.   After all you are a doctor not a CPA and you paid a preparer with the knowledge of tax laws to prepare your tax return for you.   The answer is the law hold you the taxpayer responsible for your tax return. 

Your Preparer matters

Who can be a "paid preparer"?  Answer - Just about anyone.     While the IRS is working on adopting licensing and examination requirements for tax preparers, for the most part, anyone can call himself or herself a "tax preparer".   

When it comes to accuracy related penalties, should your tax return contain substantial errors or omissions, the fact that you used a "paid preparer" to prepared your tax return does not protect you from being subject to taxes, interest, civil and criminal penalties.  So, you must chose your tax preparer wisely.

Our Compliance Review

Get a confidential compliance review of your prior years' tax returns.    We will conduct a detailed review of your prior 1 to 3 years business and personal tax returns to identify any missed credits or deductions, as well as, any non- compliance issues with the applicable tax laws.     Should we identify any deficiencies in your returns, we will discuss the matter with you and advise you on proper course of action including how to amend your tax returns to rectify the issue.

Keep in mind, correcting an issue voluntarily is a far better option than taking a chance and getting caught in an IRS audit.