IRS Audits and Examination Archives - Brotman Law - All Rights Reserved | 402 W Broadway, Suite 800 • San Diego, California 92101

Full IRS Tax Audit Representation Services

August 12, 2024June 21, 2024 by Brotman Law

If you get an audit notice, a tax attorney can develop strategies to safeguard your interests and reduce penalties. Most taxpayers are far from happy upon receiving a tax audit notice from the IRS. However, you can get relief through retaining IRS tax audit representation services in all states. Whether you’re self-employed, a small business or corporate owner, you have a right to representation in tax-related matters. IRS … Read more

What Happens if You Get Audited & Don’t Have Receipts for IRS?

August 12, 2024June 21, 2024 by Brotman Law

The Internal Revenue Service checks thousands of taxpayer returns for accuracy every year.

Tax Evasion Penalties Guide & Tax Fraud Jail Time Sentences

August 16, 2024March 13, 2024 by Brotman Law

Can you serve tax fraud jail time? Learn about tax evasion penalties, possibility of a prison sentence for crimes, fines & other tax return laws & punishment

Why is Tax Compliance so Challenging for Cannabis Businesses?

August 12, 2024December 10, 2021 by Brotman Law

Washington, Oregon, and California were among the first states in the country to legalize cannabis for recreational use.

How to Work with Brotman Law on Your IRS Collections Case

August 12, 2024December 3, 2021 by Brotman Law

The biblical tale of David and Goliath is certainly inspiring and does much to instill the belief that you can overcome any opponent, no matter how much they out-size, out-weigh or out-spend you.

Unfortunately, this is not a fair comparison to use for someone going nose-to-nose with the IRS.

Tax Return Demand from the FTB Intensifies

August 12, 2024November 7, 2020 by Brotman Law

{{cta(’09b64408-9310-4451-9a41-0234b45d370e’,’justifyright’)}}Are you a marketplace facilitator or out-of-state business who has received a tax return demand from the California Franchise Tax Board? If so, read this before you respond. We’ve provided the essential background information you need to formulate a plan prior to your response.

Federal Payroll Tax: What the IRS Expects from Business Owners

August 12, 2024August 3, 2016 by Brotman Law

If you have employees, you are liable for federal payroll taxes. Some taxes are withheld from your employee’s wages, some you must pay yourself.

The Internal Revenue Service, or IRS, administers payroll taxes as part of its responsibilities. Remaining in compliance means understanding how and when payroll taxes are calculated, filed, and paid.

What is Reasonable Compensation?

August 12, 2024November 20, 2013 by Brotman Law

One of the recent hot topics with respect to the IRS audits has to do with auditing S corporations[1] (and those taxed like an S, such an LLC) for not paying their employee/owners “reasonable compensation. According to the IRS “S corporations must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation before non-wage distributions may be made to the shareholder-employee” (IRS.gov, “S Corporation Compensation and Medical Insurance Issues,” 8/31/2013).

How to Audit-Proof Your Tax Return (almost)

August 12, 2024November 15, 2013 by Brotman Law

Full disclosure here, the IRS does not reveal the exact criteria that it uses to audit a tax return. However, this closely guarded statistic is not so much of a secret anymore. Not surprisingly, the government uses statistics to analyze tax returns and to determine which taxpayers it selects for IRS audits. Shameless self-promotion alert: I have also written a pretty comprehensive list of the factors that the IRS that are known by tax attorneys as “audit red flags.” However, in this post, I want to discuss perhaps the most important factor in avoiding an IRS audit: essentially making it bulletproof from the scrutiny of the IRS.

Why the IRS Audits Tax Returns?

August 12, 2024November 9, 2013 by Brotman Law

The Examination Division of the Internal Revenue Service is responsible for auditing federal tax returns to determine if income, expenses, and credits are reported accurately. Although the IRS accepts most tax returns when filed, there are circumstances that warrant an audit. Within this context, the IRS is motivated to evaluate those areas of a tax return that fail to comply with current policies and provisions. In general, the IRS motivation behind auditing taxpayer returns falls under multiple categories.