Tax controversy is a service involving tax disputes between collection entities and taxpayers, sometimes as the result of an audit. Our firm has a team of experts dedicated solely to handling any federal, state, or local tax issues you may have.
ADKF’s tax controversy experts are available to assist you in identifying any tax compliance errors, underpayments, or to assist you in mitigating future risks and devastating penalties.
No one looks forward to receiving an audit notice in the mail. As a taxpayer, however, you have the right to representation and the right to select a Certified Public Accountant (CPA), Enrolled Agent (EA), or attorney to represent you before the IRS. By working with us, you'll be given some peace of mind knowing that your assets are covered, and your best interests are prioritized.
Our team of professionals hold the tax knowledge and experience to handle even the most complex federal or state and local tax audits. In fact, we have a department dedicated specifically to handling audits and IRS-related issues. Additionally, our team members have years of experience working with a variety of tax authorities, so we can assure you that you will be properly represented before the Internal Revenue Service (IRS) and various state or local tax agencies.
For more information, you can view our article on professional representation for your audit.
Did you know that a taxable item purchased for resale is exempt from sales or use tax if the seller accepts a properly completed Texas Sales and Use Tax Resale Certificate? This certificate serves as the seller's evidence as to why the sales tax is exempt on the transaction in question. Additionally, a Texas Sales and Use Tax Exemption Certificate allows the tax-free purchase of an item that might otherwise be subject to tax. Sellers are required to keep these certificates for a minimum of four years from the date the sale was made in preparation for any tax, penalty, or interest that may be assessed, collected, or refunded by the comptroller during that time.
Our team is ready to assist you in the collection and organization of your resale and exemption certificates, in order to keep your organization compliant and prepared for any future audits.
If you fail to file your tax return on time, the IRS will charge you a 5% penalty fee every month until you successfully file your return.
Our team is available to provide guidance and help you navigate the process of filing back taxes and getting back into compliance with the U.S. Tax Code. We'll be by your side to assess your specific situation and needs and help you mitigate any potential consequences and penalties going forward.
Did you know that if you were to request Innocent Spouse Relief, you may be relieved of the responsibility for paying any tax, interest, and penalties accrued by your spouse?
Innocent spouse relief only applies to individual income or self-employment taxes, such as household employment taxes, individual shared responsibility payments, and business taxes and trust fund recovery penalty. Our team will be able to assist you in determining if you qualify, evaluate your specific situation, and will recommend an appropriate course of action best suited to your needs.
The Internal Revenue Service (IRS) uses the federal tax lien as a tool to collect overdue taxes. A lien clouds the title to your property and prevents the completion of any property transfers or sales and damage credit ratings. The lien is filed with your county recorder of deeds office, which serves as a public notice that you have an unpaid tax debt.
Our team is readily available to work with you to assist in any lien releases, discharges, and withdrawals.
A levy is a seizure of property, such as the money in your accounts, your car, or the garnishment of your wages. As your personal accountants, our team can assist you in evaluating your current situation and recommending a variety of strategies to deter enforced collection activities.
Sales tax nexus is the connection between a seller and state that requires the seller to register and collect and remit sales tax in the state. Certain business activities, such as having a physical presence or reaching a certain level of sales may establish nexus in a state.
At ADKF, our team of experts will work with you to determine nexus by first completing a thorough study to identify the states in which your company does business and may have nexus. We'll then assist you in determining the filing requirements for each state and work with you to determine if state registration is warranted. Our team will also research the states' amnesty program or voluntary disclosure agreement to assist in advising you of the available options.
For more information, please refer to our article on nexus studies.
With regards to notice responses, prompt action is critical in order to minimize risk and effectively resolve a tax controversy before further action is required. Whether your case requires a phone call, letter, or appeal representation, we have the expertise and resources available to quickly and effectively respond to any tax notices you may receive from the IRS or other taxing authorities.
We'll also make it a priority to assess the notice, check compliance, and develop a thorough penalty reduction strategy to resolve the tax controversy
Tax exemption provides relief from many taxes, reduced rates, or tax on only a portion of items. This helps many charitable organizations continuing running properly on their already-limited funds. For many public charities, the impact of losing tax-exempt status has the potential to be devastating. ADKF works with a number of private family foundations and nonprofit corporations to assist with reinstatement and retroactive reinstatement of tax-exempt status.
Penalty abatement is a waiver that the IRS may grant to relieve eligible taxpayers from failure-to-file, failure-to-pay, and failure-to-deposit penalties. First time penalty abatement is one method used to relieve taxpayers and should be one of your last resorts. Taxpayers are given this opportunity if they have a clean compliance history and have not made the mistake before.
The professionals in our Department of Tax Controversy are readily available to evaluate your current situation and develop a penalty reduction strategy to implement optimizable results to reduce or eliminate penalties levied by the IRS. We'll check for any errors, statutory exceptions, reasonable cause or administrative waivers before beginning. Our team is ready to assist you from your initial request through the appeal process and beyond. We’ll help you explore your options and represent you promptly and effectively in order to resolve your tax controversy.
Did you know that there are other options to assist you when you are unable to pay your current tax bill? Our Department of Tax Controversy is available to assist you in structuring and resolving collection issues through offers in compromise and installment agreement payment plans.
An installment agreement with the Internal Revenue Service (IRS) allows you to pay your tax debt in smaller, more manageable amounts. An offer in compromise allows taxpayers to settle their tax bill for less than the full amount owed. Our team can help determine if you are eligible, determine your offer amount, and prepare the required documentation.
There are a number of payment options available for late tax bills. A Short-term Online Payment Arrangement (OPA) is generally used only for individuals with less than $100,000 in combined tax, penalties, and interest who can pay their bill, in full, within 120 days. There is no application fee for a short-term OPA, however, applicable penalties and interest will accrue until the liability is paid in full. The second option is an installment agreement, which enables taxpayers to pay their liability over a period of time. This option requires that you pay a $31 application fee, a $107 direct debit installment agreement, or $225 for non-direct debit installment agreements. Additionally, penalties and interest may still accrue with this option, but at half the usual rate (.25%). Within installment agreements, you can also choose between a guaranteed installment agreement, a streamlined installment agreement, and a regular installment agreement. The final payment option is an Offer in Compromise (OIC). An OIC is a written agreement with the IRS that allows the taxpayer to pay a lesser amount in full satisfaction of an unpaid tax liability (including interest and penalties). If you are unable to pay due to hardship, a federally declared disaster, a terrorist act or military action, there may be other payment options available to you. For more information on any of these payment options, please read through our article on taxpayer payment options.
Whether you're concerned with compliance, eager to confirm that you are correctly charging sales tax, or want to make sure you're paying the lowest amount of sales tax possible, our team is more than happy to assist you in resolving your specific sales tax needs and questions. We're also available to conduct tasks such as evaluating your current process, providing training for your team, and creating a memo on the taxability of a product.
For those wanting to be more proactive in an effort to limit risk and exposure, our team can assist with strategic risk assessment by conducting a mock audit. Although a mock audit is a business expense, it has the potential to provide great value because it helps identify costly mistakes your organization is currently making or has made in the past. With our assistance, you will have the chance to correct and avoid future mistakes before an actual audit is required. We'll also help you identify strengths and weaknesses and make recommendations to minimize any potential risks.
Let us help you handle your federal, state, or local tax issues with speed and accuracy.
Because of our highly personalized approach, we've come to learn a lot about our clients industries. This extensive and ever-growing knowledge allows us to provide a strong and stable foundation for our clients and move forward with confidence knowing that we're helping them make the most ideal decisions based on their industry. Below are just some of the industries we've served. Please don't hesitate to contact us if you would like to know more about the industries we've worked with.