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Denver Accounting Firm Bloch Rothman Provides IRS Audits
IRS Audits from Denver Accountant Bloch Rothman and Associates
I’m currently in the process of closing two audits with the IRS. This may be the place where I can add the most amount of value for my Denver tax services. A little history up to this point: One of these audits involves a small business and has been going on for almost 17 months since the client was first contacted by the IRS. The second also involves a small businesses and has been going on for almost 8 months. I expect both clients owing thousands and thousands of dollars when the dust clears. The main reason is due to bad records and poor bookkeeping.
Our Denver accounting firm up until now has done a great job with both audits by only supplying the necessary information that the IRS has requested and never letting the IRS agent talk to our client. By doing this, we minimize the taxpayer's exposure to owing more money. We also minimize what the IRS looks at, which means the audit is over sooner.
I’m expecting to get ending reports from the IRS in the next couple of weeks on both audits. After receiving the reports, our work here at Bloch Rothman and Associates begins. We go through every line item and check to make sure there are no errors in your audit. When there are, we go back to the agent and/or manager and work with them to remove these items from the report. When the report is correct, we then try to abate penalties. One of the common penalties is a 20% accuracy penalty. If you owe $100,000, this penalty is $20,000. The thing that amazes me is almost every time we try to abate the penalties, the IRS agent tells us that no one has ever asked to have the penalties abated. We always do, and many times we are successful.
If you are currently going through an audit where things don’t seem to be going well, please give us a call at Bloch Rothman and Associates. We offer free Denver tax consultations and can help to answer questions that you may have about the IRS auditing process.