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It is very important to protect your appeal and legal rights by selecting a right representative.  
As a former IRS Agent,
we have significant experience to represent you
before the
Internal Revenue
Service.  

Last few years, IRS has been hiring massive number of IRS agents to conduct more aggressive in the number and sophisticated tax audits.  At the initial audit stage, it is more likely to involve with civil audit, not the criminal.  IRS will request for proof of deductions, income, or any items reported on your tax returns.  IRS will also look for any signs of inconsistency such as lifestyle habits for signs of unreported income by reviewing records, asking probing questions, and etc.  

An IRS audit is a review/examination of an individual’s or organization's or accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate.
Selecting a return for audit does not always suggest that an error has been made. Returns are selected using a variety of methods, including:

 • Low scores of your tax returns during computer screening
 • Random selection
 • Document matching
 • Inside leads
 • 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.

Should your account be selected for audit, you will be notified in two ways:

 • By mail, or
 • By telephone

The length of each audit varies depending on the type of audit, the complexity of items being reviewed, the availability of information being requested, the availability of both parties for scheduling of meetings and your agreement or disagreement with the findings.  Based on my both side of experiences as a Revenue Agent and Representative, it could last few hours in one day or could last years.
An audit can be concluded in three ways:

 • No change: an audit in which you have substantiated all of the items being reviewed and results      in no changes.
 • Agreed: an audit where the IRS proposed changes and the taxpayer understands and agrees with the changes.
 • Disagreed: an audit where the IRS has proposed changes and the taxpayer disagrees with the changes.   You will then need to pursue with appeal process.  

If you have any income tax audit issue, we will represent you from the start to the end of the income tax controversy.
In general, sales tax returns are subject to audits in three-year intervals, at the time a permit is closed out, or in connection with an audit of another permit held by the taxpayer.  Audits can also be initiated as a result of information received from the outside sources.
In a sales and use tax audit, the auditor wants to determine the following about the returns you have filed:

 • Did you report all gross receipts from sales of tangible property and taxable labor and services?
 • Did you report the cost of all business equipment and supplies that -purchased without tax either from out-of-state vendors or for resale that would be subject to use tax?
 • Did you properly claim deductions?
 • Did you properly allocate local tax?
 • Did you use the correct rate of tax when reporting sales in special tax districts?
 • Did you properly apply tax to your sales and uses of tangible property?

Initial contact is usually by phone call from the auditor.  If unable to reach you by phone, the auditor may write or visit your business location.

During the examination, if the auditor finds that your records indicate possible reporting errors, the auditor can utilize their many different audit methods such as mark-up method, sample basis audit, observation test at your business premises, and etc.

When the audit is complete, the auditor will arrange to hold an exit conference to discuss the audit findings.  If you disagree with the audit findings, you will then given your appeal rights.  

Under the California Revenue and Taxation Code, any person who evades the reporting, assessment or payment of sales taxes that would otherwise be due may be guilty of sales tax evasion.  Violations can be subject to fines and/or jail time.

Examples of sales tax evasion are:

 • Retailers collect sales tax reimbursement from their customers on sales but intentionally fail to report and pay the tax collected.
 • Retailers intentionally fail to report all retail sales on which sales tax is due.

As a former Board of Equalization Auditor, we have significant experience representing taxpayers before the State Board of Equalization with respect to sales tax audit and sales tax collection matters.  We also can assist you in resolving an outstanding tax liability.  If your sales tax audit cannot be resolved with the auditor, it is important to engage a representative in a timely manner.  If you have a sales tax problem, we will represent you from the start to the end of the sales tax controversy.
         
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