Why are audits increasing?

Taxes continue to rise and new tax laws are created every year,
making it difficult to keep up with how the changes can affect you.

As a result, the IRS has been increasing the number of audits in
order to check for compliance of the laws already in place.

So, what is the likelihood of your tax return being audited?
During 2007 and out of 134.5 million returns that were filed, only 1,384,563
individual tax returns were audited. That means that only 1% of all
individual returns filed actually received an IRS audit.

Audits work!

Can I file a return guaranteed to be audit-free?

No, because audits are triggered by random selection, making all tax returns equal ground for being audited.

However, the better supporting documentation you have, the better your chances of having a successful audit. Using the full breadth of the tax court decisions allows you—the taxpayer—to pay only what is required by law.

Documentation requirements can be discussed in tax planning and preparation meetings.

I have a letter from the IRS! What should I do?

First, we need to see the letter. You can fax it to us at (415) 329-2311, drop it by the office, or mail us a copy. Then, we can talk and plan a response.

The IRS has a "Matching Program." When they receive documents, such as 1099s or W2s, that report income that the taxpayer has received, the income is matched to the tax return the taxpayer has filed. If more income is reported to the IRS than the taxpayer declares, a compliance letter is automatically generated.

The IRS also sends correspondence audits. These are letters issued by the IRS requesting verification of deductions, which focus on itemized deductions and number of dependents.

PATS provides assistance in responding to IRS correspondence. We can write the letters and organize your documentation in order to prove your deductions.

I am being audited by the IRS/Franchise Tax Board!

As an Enrolled Agent, Georgia Rogers is licensed by the IRS to represent her clients in an audit. It is always in the best interest of the client to have an EA assist in the preparation of the response and then meet with the IRS field agent. EAs are required to fulfill yearly continuing education in order to be familiar with the rules and regulations under which the auditors have to perform, as well as the latest changes in the law. The field audit is designed to be intimating, and EAs are trained to handle that kind of environment.

As a small business owner, what can I do to save taxes?

There are many opportunities within the law for a small business owner to save tax dollars without taking unnecessary risks. The tax courts have held that there is nothing illegal or sinister for tax payers to organize their affairs in order to pay the lowest tax legally available.

PATS provides tax planning strategies to save money for the individual tax payer as well as small business owners.

Bringing clarity and focus to your finances is part of our job!