Audits: IRS, FTB, SBE, EDD, Workers Comp

We understand the emotional stress a tax audit, IRS or State, civil or criminal investigation can cause. Immediately contact us if you have been selected for an audit, or you are the subject of an IRS, or other taxing agency, investigation. Our tax lawyers are here to defend your rights and provide an effective defense strategy in a tax audit anywhere inside or outside of the United States.

It is important to have legal representation upon notice of any government audit or investigation. Usually, criminal investigations rely heavily on the admission and evidence, provided by the person, such as the tax return filings or documents submitted in response to a “routine inquiry.” As such, every person in any type of audit may benefit from the representation of an experienced tax attorney.

There are many types of audits in varying degrees including, but not limited to, automated adjustment notices, correspondence audits, office audits, field audits and TCMP audits. Please see our tax controversy/dispute blog for more information on audits.

Examples of Audit representation:

IRS Audit

*The auditor for the Internal Revenue Service alleged that our client had not reported over $300,000 of income. The auditor’s basis for this allegation: our client’s lifestyle. We successfully represented our client by convincing the IRS that the auditor’s allegations had no merit. In addition to the winning the unreported income allegation, we also convinced the IRS to allow an additional $100,000 of bad debts previously omitted from the original tax return.

* Client presented firm with an IRS audit reviewing gross income and disallowing the legal fees related to a civil case (accident) he had deducted as a business expense. We convinced the IRS that the almost $18,000 in legal fees qualified as a business expense despite the facts surrounding the expense falling into a grey area. Further, we were able to demonstrate that the client had no unreported income by accounting practices, including providing a bank deposit analysis.

*A client retained us for audit representation wherein the IRS discovered approximately $400,000 of unreported income. We were able to convince the IRS to not prosecute the case criminally, accept secondary evidentiary documentation as proof of business expenses, and concede the statutory applicable fraud charges.

*Our clients were facing an extremely aggressive Internal Revenue Service auditor who believed that income was not reported on the income tax return being audited. At one point, the auditor issued a series of summonses demanding that our clients allow him to personally interview them in their home. The auditor wanted to use the summons to interview our clients and search their home. In the course of this dispute, the Internal Revenue Service issued summons after summons, and threatened to file an action in Federal District Court to allow entrance into the residence. We successfully argued that the Internal Revenue Service was treating our client unlawfully, and it was illegal for them to search a home of a taxpayer in this manner.

FTB Audit

California Income Tax Audits & Problems

SBE Audit - Sales Tax

Sales Tax Audits: Part I, Being Prepared
Sales Tax Audits: Part II, The Process
Sales Tax Audits: Part III, Appeals

EDD Audit - California Payroll Tax

Workers Comp Audit - California Payroll Tax

Update: September 2011 - IRS audit news:

  1. Audit Examinations:
    • 2010 Results = Over 34,900 office exams and 36,000 field exams. The 2011 #s are not in yet.
    • 2011 Exam Priorities =
      • Increased audit coverage
      • Abusive transactions
      • Unreported Income
      • High income/High wealth strategy (multiple Schedules attached to 1040)
      • Return Preparer Program
      • National Research Program (formerly TCM

The Moskowitz Difference

Along the way to outstanding results, we provide our clients with skilled, aggressive, efficient, and personal service. Audit representation requires a certain degree of toughness from lawyers, along with intimate knowledge of the United States Constitution and Internal Revenue Code and Tax Law. We are experienced and comfortable in a multitude of venues, and offer strategic and cost effective representation. We build a case to your benefit when defending it.

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