The audience is responding, the truth is that there are audits. In fact, reading the page of the IRS’s a percentage of people being audited and we have to consider that in the last four years the IRS has quadrupled force auditors. In other words, if I had a thousand employees and I quadruple them, I have now four thousand employees who have the title of auditors. If I have more auditors it means I’m doing more audits. We’re talking about simple mathematics, very practical things, but that is the reality, this is what has been happening in the last four years. The consequence of this is that there are more people exposed to such audits.

Another situation that is happening is that there are people giving information to the IRS. As we discussed in previous programs they are telling now how much people paid with credit cards in recent years, the government is also requiring more financial institutions even abroad to report this information, people who have accounts outside United States, this information is coming to the government, so the more information there are more tools in the department to do their job. To these people we are helping them to be daily updated, fulfilled and at least harmed out these audits. Sometimes experience tells us that the information provided is incorrect, because people did not understand or did not do what they had to do. An example: a person has to make a payroll report because it has employees, the person ceases to be employed but not reported to the government, and then the government assumes that still has employees and makes quarterly report. If this person doesn’t make the report, the government does it and establishes a debt, he is claiming something that is not real and if the person is not able to fix it end up paying a debt that did not belong.
The audits have different ways and you should be clear on how to deal with it, so you do not have problems.

For entrepreneurs, many of the audits are focused on companies in business, what is audited there?

A business usually has two areas, has the input area and output revenue income and the reality that unites the business is that everything is auditable, people often think it’s just the economics. In the month of May came a new way that made the internal revenue department and the immigration department, form 19, form related to the employees of your business, how to redesign and there is a new form, to 20 years that form had not changed and are now demanding to be the new form that is used.

Many companies do not even know that there is a new form that must be filled, not having this information does not meet the requirements, and are in a rape and the government can fine. It is important that you catch up, you know what is happening, not only in the economic, this example does not have to do either with the financial part, except that you get a ticket and you have to pay, because it is an effect has to do with how to operate, to have employees. You must have a shape that is how 19 and must be the current form.

The purpose that has an audit is to review the information you supply in the honor system, and you need to verify that the information is correct.

Sometimes happens for differences between the information you supply and that provided others in the government, and sometimes happens because maybe you did nothing. Sadly there are people who have not paid their taxes by 3. 4, 5 years. The IRS tells these people that they have to go to pay their taxes and at this time when we need to go to an accountant.

About a month ago we helped some people with this problem. They had not paid their taxes for several years, in this case when the IRS comes give a date and told you what to do. When you know that had not paid your taxes for several years is a good time to do it.

How to deal with an audit?

If you’re in the middle of the situation you have to pay attention and pay as soon as possible. A specific example, a person come here when is an audit, you get a letter from the government saying that you have a debt of 35.000 dollars, why? Because in previous letters ignored them, then the government established that you had a debt. Now we check and realized that it was possible to fix the problem, we were in time to do so, we prepare the necessary documents. Of the 35 thousand dollars real debt were 4000 dollars. At the end they pay, but is not the same to pay 4000 dollars that 35.000 dollars.

Is the information that is submitted, it is checked against information?

The information is checked against documents sent third, equally there are companies that send what you win and / or what you send payment. For example, if you have a house and the house has a mortgage and you pay interest that you can cut down any of the different schedules of your return. The same information is also received by the government, i.e., not only the part of the income, if I win if I win wages or self-employment, interest, dividends, is also part of the costs, the portion of what are the interest expense, which are part of taxes, pay taxes in your home, it’s all such information. About 5 years ago, the IRS issued a call to the credit card companies will send them a summary of what a business collected during a year in credit card for what?, To be sure that the People are reporting all income, because some companies were in the habit of having a separate account for those charged for credit card and forgot to pass this report to present to the counter when all your income accounts. Today, the IRS says, “I want the credit card companies tell me this person or business as collected through your credit card.” This is one of the things the IRS compares when performing the report either personal or corporate.

When a person receives a letter saying “we will audit”, what is the first thing you do and why you probably received this letter?

They will receive a document that will say they are doing an audit, a review of his statement. You have to pay attention to this letter. The first thing you have to do is open it and face it. Sometimes there are people who do not open and when they open their 3 or 4 letter, and the audit step without you, I mean, you have the result, then it is important that any correspondence from the IRS that you received, the open and the the corresponding importance. In many cases, the reality is that many audits can be solve over the phone and they are audits that are wondering what really are differences, and these are fairly simple to solve, but there are other audits that are not that easy, where you want see details and there must also give the corresponding importance, as it is a little harder.

Why am I being audited and that audits arise?

The audit comes as a congressional mandate and purpose they have is to check that what people say is their statements is correct. Remember that in America we are through what is called the Honor System. The Honor System means that if I put that I win $ 10, then I win $ 10 and I earn U.S. $ 15, if I got to spend U $ 8 these U $ 8 must be related to what I put in the declaration and audit what it does is simply verify that what got this right. So when you would get a letter does not mean it’s a problem, what it means is you have to check if you have done the right thing, if you have declared all your income, if you put only those deductions or discounts you entitled. You need not fear this type of review.

What are the most common letters sent by the IRS to communicate to a person’s situation?

This is very important, at this time the IRS does not communicate with any of e-mail, so be careful, yes you get an e-mail that says IRS, not the IRS, they do not communicate by e-mail , they communicate by letters sent by regular first class mail, when the letter arrives, you open it and follow the procedure. The most common letter are seeing is the discrepancy letter, it means that he has forgotten something in the statement, ie, that have received extra information that has not been put in the declaration and often these letters are solved by introducing email additional evidence or filed the amended return. It is the easiest letter and you have to pay attention because otherwise you may face potential problem.

What if the person does not respond to that letter that says that you forgot to submit this statement, this income “?

If you do not respond, the IRS will continue running, remember that the process will continue with or without you, the only thing is that in the end you are the injured party that he will always get the collection letter, if you do not case, they will continue running assuming that income was his, that you had that debt if you are going to start charging.

Workshop practices and duties of all companies and entrepreneurs Expolit again in 2013 – Alfonso Cordero cpa presents practical workshop and duties of all companies and entrepreneurs.

You will learn:

What’s hot in the IRS in these times, the five most common mistakes committed by a board of directors and how to avoid them. Where is focusing the state of Florida to find money these days and how to be prepared.

Who should attend this workshop:

1. Any person who is a member of a board of directors
2. Any person handling the accounting
3. Any person responsible for signing the reports that are sent to government
4. Any person who has signature on the bank account of any company or business
5. And finally you

Sunday May 5, 2013
At 3:00 pm
Salon: MCC-200
With general admission to Expolit 2013 can attend the seminar free of charge.

This has been one of the most common problems that the Department of Revenue had this past season, 8 out of 100 people’s identities had been stolen and found out when they tried filing their return and were told that their refund had already been paid out.

Can this be avoided?

We are in a time when people are vulnerable, they go shopping and are asked if they have that store’s credit card and when told no, they have the person fill out a credit application with all their personal information on it. Modern cell phones can be a recorder and get all one’s data.

In a Doral restaurant several months ago there was a list for the purpose of registering customers after several days and saw that it only contained two names. The reason is because people do not want their information made public. If they take this list and make independent forms that are filled and are stored privately, the result is different. We must be careful because at this time it is not like the previous era of thieves. Now there are other mechanisms.

There are e-mails being sent from the IRS as if they were the ones requesting additional information saying that they would send an additional refund.
The Internal Revenue Service says they do not send these e-mails, the only purpose of the emails is to steal confidential information or the person’s identity. Try not to give audible information voluntarily.

For more information please call 305-599-4111 of the offices of Alfonso
Cordero of Cordero CPA.

Si ud le debe dinero al IRS, ellos quieren ayudarle, ellos saben que han habido situaciones económicas, y por esto quieren negociar con ud, por ejemplo: si le debe 100 ellos le pueden decir pagenme 10. Esto puede beneficiar a cualquier persona o negocio que tenga una deuda con el IRS.

Porque existe esta iniciativa?

Es por la realidad del mercado, se enfatiza en algo que se llama la oferta de compromiso, esto siempre ha existido, lo nuevo es como se evalúa esa oferta de compromiso, anteriormente los parametros decían que si tiene la capacidad de pagar $1,000 al mes lo multiplico por 60 y esa es la cantidad mínima de oferta que ud puede hacer. Si debe $200,000 podría hacer una oferta de $60,000 que sigue siendo bueno ya que estaría evitando pagar $140,000.

Pero el programa nuevo dice que no lo multipliquemos por 60 sino por 12 solamente, asi que en vez de $60,000 ahora lo puede pagar por $12,000, lo cual serian $188,000 en ahorro.

Esto es un tecnicismo de evaluacion que se abre como una ventana, que las personas deben utilizar ahora antes que se cierre y algo que hubiera podido haber pagado por 12,000 en el ejemplo que dimos anteriormente lo va a tener que pagar por $60,000 si no aprovecha esta oportunidad.

Alfonso Cordero le ayuda con este programa de fresh start del IRS, puede comunicarse ahora mismo para mas información con las oficinas de Cordero CPA.

Si ud debe dinero al IRS y no puede pagar la cantidad completa, ésta es la mejor opción, un plan de pago y una oferta de compromiso.

Acerca del short-sale, personas que han estado en foreclosure hay una diferencia que queda pendiente, las personas tienen dos opciones: la primera es revisar la declaración de impuestos, muchas veces está mal preparada y ud no debe la cantidad que dicen que debe y la segunda opción es aprovechar el fresh start del que hemos estado hablando anteriormente para poder pagar centavos del dolar que ud debe.

Para todo esto ud debe actuar ahora mismo, para más información llame ahora mismo a Cordero CPA 305-599-4111 y si conoce a alguien que tiene alguno de estos problemas compartale este número de teléfono.

There is an honor system that indicates that what you entered on your tax form is
true, so that an audit is the process of reviewing what you stated is correct.

Who does the IRS audit?

One way is randomly, the second way is specified according to the circumstances,
for example the IRS decides to audit real estate, at another time say they audit computer companies
and the third is tax returns that don’t add up, for example a person who says he earns $10,000 and has
medical expenses of $40,000. By its nature this is the only audit that you can avoid.

If you get an audit letter, the first thing to do is to find an expert to help you. The auditor will tell you to seek professional help. Recently Cordero CPA helped a client that hired them as a third representative
save more than $80,000.

Moreover Cordero CPA, will be offering a free webinar (Seminar Internet) on the impact of the health plan in your business. It will be held on October 24th and will be informative and speak specifically to business people with
employees. This is a plan that is already approved and has results, so we will be discussing qeu?? with a panel of lawyers, payroll experts and a Cordero CPA to explain what you should know about the current health standard and how it affects your business.

Cordero, CPA, PA

In order to determine whether you have reported your deduction and expenses and other items correctly, the IRS may audit your income or business tax. Their representatives are trained to extract more information than you need to disclose during your audit and the information they get from you will help them increase your tax liability, which often can lead to more tax years being audited. They have the power to ask you to show documentation for every item on your tax return, including expense receipts, invoices, and other items you may not have access to. The biggest reason people receive letters from the IRS is addition or subtraction errors which rarely leads to a full audit but double-check your math anyway before you send in your return. A sloppy return is most likely to get a thorough check by the IRS, especially if the important numbers are illegible.
If the IRS examines one of your returns, the examination will usually take place through the mail. The IRS uses correspondence audits to take care of the most common tax return problems, such as mathematical errors, missing forms and schedules, and illegible entries. You must return the audit notice along with any documentation and explanations the IRS has requested. The requested documentation might include: home mortgage statements, tax returns, pay stubs, receipts, brokerage statements, and retirement account.
In a field audit, the examiner visits your home or business to verify the information on your tax return.
In an office audit, you must go to an examiner’s office. The examiner requires you or your representative — such as your tax preparer or lawyer — to bring documentation and information such as receipts, pay stubs, or account statements. At the end of the audit, the examiner will mail you or give you a 30-day letter which consists of a copy of the examination report, an explanation of how the IRS wants to change your tax return to reflect the report’s findings, an explanation of your right to appeal and a publication called “Your Appeal Rights and How To Prepare a Protest If You Don’t Agree.” You have 30 days to respond, so if you’re not sure about the IRS’s findings and you want to consult a tax professional, don’t rush to sign the examination report. If, within 30 days, you find the IRS is correct, indicate you agree and sign the examination report. If you do not agree, however, you can appeal the findings before the 30 days is up. An appeal, handled by an IRS Appeals Officer, can take a year or longer. Following the appeal, the IRS sends a 90-day letter, which gives you 90 days to request an escalation to Tax Court, in case you don’t agree with the Appeals Officer’s findings. Most audits are resolved long before Tax Court comes into the picture.
Cordero, CPA, PA can represent you through your audit, you don’t need to attend. Our specialists will handle your entire audit for you. When and if the IRS returns and they believe there is something wrong with a claimed item, they may request more documentation and information. When the IRS decides to audit you they send you a Notice of Audit. You then have 30 days to respond to their notice, along with a list of documents, and the revenue officer assigned to your case. Most audits are won by the IRS because the taxpayer failed to respond, or provide the documents required.

Contact us today for a free audit evaluation. Cordero, CPA, PA, a bi-lingual firm, are here to answer all of your questions and concerns. We are based in Miami and Orlando, FL and are here to assist you. Give us a call at 305-599-4111 in Miami or 407-931-0002 in Orlando.

Income tax is a tax levied on the income of individuals or businesses. Personal income tax is often collected on a pay as you earn basis, with corrections made right after the end of the tax year. These corrections take one of two forms. One being, payments to the government by taxpayers who did not pay enough during the tax year, and secondly, tax refunds from the government to those who overpaid.

There are deductions that are available that lessen the total tax liability by reducing total taxable income and losses from one type of income to be counted against another. When the tax is levied on the income of companies, it is often called a corporate tax. Individual income taxes often tax the total income of the individual, while corporate income taxes often tax net income, the difference between expenses, gross receipts, and additional write-offs.

The types of payment that are taxed include personal earnings, which are wages, capital gains, and business income. Capital gains may be taxed when shares are sold or when incurred. Interest on bank savings may be considered as personal earnings. Gambling wins may be considered as earnings also. There are deductions available that lessen the total tax liability by reducing the total taxable income. They may allow losses from one type of income to be counted against another. A loss on the stock market may be deducted against taxes paid on wages. Losses can also be isolated, the business losses can be deducted against business tax by carrying forward the loss to later tax years.

There are so many possibilities and we at Cordero, CPA, PA, a bi-lingual firm, are here to answer all of your questions and concerns. We are continually educating our staff with the latest tax laws and tax codes which are often overlooked by the uninformed.

These oversights by the untrained can cost you dearly. We are based in Miami and Orlando, FL and are here to prepare your tax returns. Give us a call at 305-599-4111 in Miami or 407-931-0002 in Orlando.