rs-irs-audits Archives

Full IRS Tax Audit Representation Services

April 23, 2026June 21, 2024 by sbrotman@sambrotman.com

Key Takeaways What is tax audit representation? How can IRS tax audit representation benefit me? Why choose Brotman Law for IRS audit representation? A full audit representation service from beginning to end Contact us about our IRS tax representation services now If you get an audit notice, a tax attorney can develop strategies to safeguard your interests and reduce penalties. Most taxpayers are far … Read more

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

April 23, 2026June 21, 2024 by sbrotman@sambrotman.com

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

What is an IRS Taxpayer Advocate?

April 23, 2026May 4, 2022 by Brotman Law

Key Takeaways

Secondly, when you have not received a response to your inquiries, you must have contacted the IRS at least two times before.
In terms of IRS notice problems, you must have responded at least two times to an IRS notice “requesting some IRS action.
The Taxpayer Advocate will not take your case if the problem cannot be solved by the IRS, if your case is under criminal investigation or if you are considered a tax protestor.

The IRS Taxpayer Advocate helps taxpayers resolve problems with the IRS and also recommends changes to help prevent problems in the future. The Taxpayer Advocate handles those issues when the tax problem is causing significant financial difficulty, when you or your business are facing immediate, adverse threat and when you have tried to contact the IRS repeatedly to no avail.

The Differences Between the Federal System and the State of California

April 23, 2026December 17, 2021 by Brotman Law

Key Takeaways

Internal Revenue Service
State of California
Representation You Can Count on

As a small business owner, you are used to dealing with the IRS and the state. You file income taxes with the IRS every year and file returns with the state when they are due. Paying tax is paying tax, right? So, why is there such a difference between the way the IRS plays versus the state?

Your Rights as a California Taxpayer

April 23, 2026April 30, 2021 by Brotman Law

Key Takeaways

The California Department of Tax and Fee Administration (CDTFA) administers the tax program for both business and property taxes for the State of California.
Sales and use tax
Fuel tax
Cigarette tax
Alcoholic beverage tax

Business taxpayers may take up their concerns directly with the main office of the CDTFA while property tax concerns are addressed by the local county office.
When you deal with the tax agencies of California, you may feel like you do not have any rights.

The California Department of Tax and Fee Administration (CDTFA) administers the tax program for both business and property taxes for the State of California. Business taxes include:

How the IRS Conducts Financial Analysis

April 23, 2026October 2, 2020 by Brotman Law

Tax attorney consultation at Brotman Law

If you are trying to work with the IRS on an installment payment agreement of your tax debt, you may be wondering exactly how they determine who gets approved and who does not. It probably feels like, “which way is the wind blowing that day?”

Key Takeaways

If you are trying to work with the IRS on an installment payment agreement of your tax debt, you may be wondering exactly how they determine who gets approved and who does not. It probably feels like, “which way is the wind blowing that day.
Fortunately, the process is a little more objective than that. The IRS has a complex system of tables and guidelines that they use to determine what the standard of living is for your particular region.
The IRS will also look at your assets both personal and related to your business. There also is a little leeway for special circumstances, such as additional expenses you need to take care of your family or run your business.

Who is Afraid of the Big Bad Wolf? – About the IRS

April 23, 2026July 17, 2020 by Brotman Law

So now I want to talk a little bit about the IRS itself. The IRS itself, what I commonly say about the IRS is, “Who is afraid of the big bad wolf?” It’s the IRS has mystique about them. They are viewed as this big albatross of a government agency with unlimited power and they have the ability to put people in jail or take their houses away or any number of really negative nasty connotations. This culture of fear surrounding the IRS has been perpetuated number one, by the tax resolution industry which tries to use fear marketing to target clients and then the other really by the IRS itself. In actuality, the IRS is a small organization that has very limited resources and relies on putting fear in the people to motivate them to action. The IRS is trying to solve the problem about $85 billion tax gap. And that tax gap is a result of people either not filing returns or not paying what they owe.

Key Takeaways

So now I want to talk a little bit about the IRS itself. The IRS itself, what I commonly say about the IRS is, “Who is afraid of the big bad wolf?” It’s the IRS has mystique about them.
In order to help close the tax gap, the IRS has built a little bit of fear surrounding audits and surrounding collection activities, trying to motivate people to take action to solve their tax problems.
Some of them are statutory. A lot of them can be found in the internal revenue manual which is the governing document for IRS collection officers and examination personnel. That is a very useful tool, although very technical.

What Causes a Balance Due

April 23, 2026July 17, 2020 by Brotman Law

One of the first things I want to talk about is what causes a balance due. Balance due is tax liability that is owed to the government. There are four basic ways that balance dues occur. The first is you file tax return showing a liability that’s owed to the government that is not paid. If a tax payer files a return, they owe $10,000. They don’t include the check with that. That will create a balance due within the IRS system. The second way that balance dues are formed is through the matching program that the IRS has. When the tax payer files a tax return not showing a tax liability but there are either errors or omissions on that tax return, then the IRS will make a correction. Oftentimes, the issue of the correction through which is called the CP2000 notice, tax payer will file a return.

Key Takeaways

One of the first things I want to talk about is what causes a balance due. Balance due is tax liability that is owed to the government. There are four basic ways that balance dues occur.
They’ll get a nice letter in the mail saying, “Hey, we noticed you left off some income. You didn’t report the 1099 that you had. You stated a credit that we don’t believe you’re entitled to.” Any number of things can cause a CP2000.

Substitute for Returns (SFR)

April 23, 2026July 17, 2020 by Brotman Law

The final way that balance dues are created is through what’s called substitute for return. When you have a case of a non-filer, if the taxpayer doesn’t file a return for a year and the IRS will see a way to income information for that taxpayer or any number of other third party data sources, then the IRS will create a return for the taxpayer. That’s what is known as substitute for return or SFR. If you’re calling the IRS and the IRS indicates the taxpayer has SFRs on file, that means the taxpayer didn’t file a return. Those SFRs can simply be corrected through a tax return and putting something on the IRS system with the SFR liability. Generally, the statute for any changes through examination is three years with some exceptions. There’s exceptions for fraud which can extend the statue up for six. And there’s also an exception for SFRs. Any time a taxpayer does not file a return, the IRS can technically go back and file a return on their behalf.

Key Takeaways

The final way that balance dues are created is through what’s called substitute for return.
In reality, the IRS is governed on SFRs to IRM 412.1.3. 412.1.3 says that as general policy consideration, the IRS will usually limit SFR filings for the past six years. There’s a couple of factors that play into whether the IRS will file an SFR or not.
And she’s been the beneficiary of the trust for since about mid-80’s and she has failed to file her returns for since the mid-80’s going forward.

Overview of IRS Examination Process – Three Types of Audits

April 23, 2026July 17, 2020 by Brotman Law

Briefly I want to cover just a brief overview of the IRS examination process since it is one of the principle ways that balance dues are created. With respect to audits as I mentioned earlier, there are three types of audits. There are correspondence audits, there are office audits and there are what we call field audits. With the diminished IRS resources, the IRS is spending more and more correspondence on fairly simple issues. And even issues in the past that required some documentation like the IRS is challenging a taxpayer’s auto expense. Those audits are being handled more and more by correspondence.

Key Takeaways

Briefly I want to cover just a brief overview of the IRS examination process since it is one of the principle ways that balance dues are created. With respect to audits as I mentioned earlier, there are three types of audits.
The taxpayer will get a letter in the mail. The letter says, “Hi. We’re the IRS. We would like to challenge some of the information on your return.
The difference between an office audit and a correspondence audit is office audit generally involve issues that are fairly technical. They’re headed by a tax compliance officer versus a “revenue agent” or auditor.