IRS Audit & Appeals Help – How the Inflation Reduction Act Could Impact You

For any American taxpayer, falling foul of the IRS (Internal Revenue Service) and finding yourself the target of an IRS audit is the stuff of nightmares. Nobody wants to be audited, which is part of the reason why our IRS audit & appeals representation help is so highly sought after here in all 50 States.

As you are probably aware, thanks to a global pandemic, political unrest, invasions, soaring energy prices, and soaring gas prices, inflation is currently spiralling out of control. People are in real danger of not being able to afford to live, which is why something has to be done.

Ordinarily interest rates are hiked to tackle inflation, but this year, as things are so uncertain, greater measures were needed. Recently, Congress passed the Inflation Reduction Act, with President Biden signing it into law in August 2022.

Designed to help tackle inflation, there is a real worry that the act could result in millions of American individual and business taxpayers being targeted by the IRS for audit and examination.

Our Whittier, Los Angeles, CA based tax firm represents taxpayers before the IRS, income 1040, 1041, 1120, 1220S, 1065, employment 941/940 tax representation. Call us today at 877-788-2937.

Here’s a look at how the Inflation Reduction Act could affect you and how our IRS audit and appeals representation help may be needed.

What Is the Inflation Reduction Act?

The Inflation Reduction Act, also abbreviated to the IRA, is a new, multi-billion-dollar healthcare, energy, and tax legislation that has provided an extra $80 billion to the IRS to help is strengthen its workforce, technology, hire and train more revenue agents, officers, staff over the course of ten years.

The act is designed to tackle inflation by reducing the deficit.

The thinking is that this funding for the IRS could help to enhance tax compliance and bring in billions more dollars (an estimated $203 billion) in tax revenue.

What Does the Inflation Reduction Act Mean for Taxpayers?

As this new legislation is so, well, new, nobody is sure whether it will work or not, or how taxpayers will be impacted.

Like most things however, there is a lot of scaremongering and over exaggeration, with people talking about how an “army” of nearly 90,000 new IRS revenue agents will be setting their sights on everyday taxpayers and auditing them, as if they were some ruthless Terminator-like IRS agents from the future. In truth, many of these 87,000 new agents will actually be replacing revenue agents, officers, and other staff who retired in the past 10 years and are retiring or simply finding new work.

While things have of course been blown way out of proportion, the new funding from the act does mean that everyday taxpayers are more likely to be audited now than they were, say, a decade ago.

Our Whittier, Los Angeles, CA based tax firm represents taxpayers before the IRS, income 1040, 1041, 1120, 1220S, 1065, employment 941/940 tax representation. Call us today at 877-788-2937.

Who Is More Likely to Be Audited?

Being audited by the IRS is no fun, even if you have done everything legal, above board, and by the book.

While nothing is official, and while anybody can be audited by the IRS, at any time, it will likely be high earners, small businesses and large corporations who are more at risk, as these would likely have more funds to hide.

Low and middle earners can still be audited just like before, which is why you need to seek our professional tax services to provide IRS audit & appeals representation help.

What to Do if You are Audited?

Okay, so the big question is, regardless of how much you earn, if you have been selected by the IRS to be randomly audited, what do you do next?

Here’s a look at our RS audit and appeals help in the form of some handy tips:

Stay Calm

The first thing you should do if you are being audited by the IRS is stay calm. Yes, it’s extra stress you don’t need, but as long as you’ve done nothing wrong and have nothing to hide, you’ve nothing to worry about.

The IRS is surprisingly fair & equitable, and they simply want what they are legally entitled to. In some instances, audits have proved beneficial for the taxpayer as they have unearthed evidence of them paying too much tax, meaning the IRS had to pay them back.

Speak With The Right Tax Representation Professional

The IRS have been in contact and have confirmed you are to be audited, what are your next steps? Well, the first thing you should do is speak to an expert tax professional who special in representation before tax agencies. Mike Habib, who leads our tax representation firm, specializes in representing individual and business taxpayers before the IRS.

Our professional tax services deal with audits, examinations, appeal, tax help, tax preparation, bank levies, wage garnishment issues, tax liens and much more besides.

Speak to Mike Habib who specializes in audits, and tax representation. We become your POA, power of attorney, can act on your behalf, we can tell you which documents you need to organize, we can help you file all the necessary paperwork, and much, much more on top.

Get Your Records in Order

Another reason to hire a tax representation professional is due to the fact that they can help you get everything together that you are going to need.

The IRS will need to seek your books, records, receipts, bank statements and proof of purchase etc. Our tax professional working on your behalf will tell you exactly what you need, and provide guidance throughout the process.

Our Whittier, Los Angeles, CA based tax firm represents taxpayers before the IRS, income 1040, 1041, 1120, 1220S, 1065, employment 941/940 tax representation. Call us today at 877-788-2937.