“Over the past few years, the IRS had increased its scrutiny of both businesses and individuals.”
San Francisco, CA (PRWEB) September 28, 2012
Safe Harbor CPAs, a leading San Francisco CPA firm in San Francisco, announces increased IRS audit representation for Bay Area businesses. Recent IRS trends have increased the probability of business and individual audits, and this uptick in IRS audit defense requests has spurred the CPA firm to bolster its IRS audit representation services.
“Over the past few years, the IRS had increased its scrutiny of both businesses and individuals,” explained Chun Wong, CPA, managing partner at Safe Harbor. “We have seen a continual increase in requests for IRS audit representation not just in San Francisco but throughout the greater San Francisco Bay Area.”
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More on IRS Audit Representation Services and Audit Triggers
Over the past few years, the IRS has dramatically stepped up its efforts to study specific industries, and to educate its examiners about business practices, terminology, accounting methods, and common industry practices. It has also identified areas of inquiry that produce audit results. Examiners are told specifically to look out for certain red flags to get at what is really going on in a business or transaction. The IRS has also updated its tax gap figures (the estimated $450 billion difference between what taxpayers owe and what they pay). Several research studies are underway into various segments of the taxpayer population. That, in conjunction with Treasury reports on IRS audit performance means that examinations are increasingly focused on business areas and issues that are likeliest to generate increased taxes, penalties, and interest.
Safe Harbor CPAs has increased its vigilance for its business and individual clients to help guard against “audit triggers.” While complying in full with all applicable laws, the goal is to reduce the risk of time-consuming IRS audits. For example, another IRS initiative relating to IRS audit risk is to improve compliance by fostering greater communication between the IRS and representatives of various industries. This interplay is intended to clarify treatment of specific tax problems far in advance of an audit. For example, the IRS and the food service industry have come to an understanding about properly determining and reporting employee tips. Employers that comply will face reduced IRS scrutiny on this issue. Additionally, the IRS has established the Voluntary Classification Settlement Program (VCSP) where employers who have misclassified their employees as independent contractors may come forward before the IRS initiates an audit and voluntarily reclassify the workers in exchange for reduced penalties.
Safe Harbor CPAs acts as a top San Francisco CPA firm to not only represent clients in IRS audit situations but also to prevent IRS audits in the first place by providing clarity and conformity to tax return preparation for both business and individual clients.
About Safe Harbor CPAs – a Professional CPA Firm in San Francisco
Safe Harbor CPAs specializes in accounting and tax services for individuals and businesses throughout the San Francisco Bay Area and greater California. Safe Harbor CPAs helps both individuals and businesses with tax preparation, IRS audit defense, and audited financial statements. The firm prides itself on friendly yet professional service and utilizes state-of-the-art Internet technology to provide quality customer service.
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