What does Caterpillar’s ongoing battle over taxes have to do with business here in San Diego? It may surprise you to know the IRS isn’t always right and in fact often misinterpret Generally Accepted Accounting Principles (GAAP) and even US tax code. Our office is often forced to stand up to the IRS and engage in what amounts to lessons in GAAP and accounting as it relates to the US tax code. The IRS isn’t always right and it is rarely in our client’s favor.
This is why it is important to work with the experienced tax attorneys at Allen Barron whenever the IRS is in your mailbox announcing their approach. The IRS has invested heavily in advanced computer systems which do a more efficient job of culling US tax returns for areas of focus or concern and highlighting individual returns which fall outside of “norms” based upon a bell curve analysis. The IRS is sending out a lot more letters than ever before. Why? They have discovered that US taxpayers provide far too much information in response to an IRS request, information which can then be used against the taxpayer to generate additional tax revenue for the Treasury. This is often the doorway to an IRS audit.
If you receive a notification from the IRS you cannot ignore it. It is also not in your best interest to respond to it yourself as communicating with the IRS directly often results in substantially increased review of current year and prior year tax returns resulting in “scope creep” and a much higher tax bill at the end. Allen Barron handles all communication on your behalf and provides exactly the information requested by the IRS. We hold them accountable to the law and GAAP and have the legal standing and skill to stand firm and in some cases push back.
The recent example of a client who received Notice of the IRS’ intention to levy their business bank account when the business taxes were in fact paid in full and the IRS (when pursued by Allen Barron tax attorneys) conceded the balance on the account was zero – the intent to levy notice was an error. The client was ready to write the check to the IRS to prevent them from freezing the business account in question.
Keep in mind the IRS has incredible power to seize assets and accounts and implement draconian collection tactics. However, the IRS tax attorneys and accounting professionals at Allen Barron can and will protect your interests as well as your bank account! If you have been contacted by the IRS we invite you to contact us for a free consultation at 866-631-3470.
