IRS Tax Compromise Levy Audits
TaxEsq
The Tax Law Network
a service of
Ronald J. Cappuccio, J.D., LL.M.(Tax)
Counsellor at Law
1800 Chapel Avenue West
Suite 128
Cherry Hill, New Jersey 08002 USA
(856) 665-2121
Fax (856) 665-9005
E-mail: Ron@TaxEsq.com




Online Articles





IRS Audits, levies, collections Liquor License Holders Targeted

The New Jersey Division of Taxation is on the attack again.  Fifty (50) new employees have been hired to audit bars and restaurants with liquor licenses to extract more taxes from the business of their owners.  The Division of Taxation attempts to take advantage of the poor record-keeping of many small businesses by grossly exaggerating income during the audit.  This causes an increase in Sales Tax, Corporate Income Tax, and Gross Income Tax of the owners of the business!
  • Not a Simple Audit
The Audit process starts with a Notice from the Division of Taxation scheduling an audit.  Unlike a normal audit, this audit is designed to "prove" that the business is understating income.  Using elevated profit percentages, the auditor greatly inflates gross income resulting in a large tax increase.  When penalties and interest are added, the result could cost a small fortune.
  • How Should You Respond?
  • Although some business owners mistakenly believe that "cooperation" by not being represented will make the business look better, that is Not True!
  • Do not call or contact the Division of Taxation Investigator.
  • Do not let the audit start without Legal Representation.
  • Engage a tax attorney, in addition to your accountant to represent you during the audit process.
  • Defer all of the Auditor's questions to your tax attorney and accountant.
  • Gather your accounting records and all tax returns for the years being audited.
E-Mail: TaxEsq


© Copyright 2000 All Rights Reserved
Ronald J. Cappuccio, J.D., LL.M.(Tax)
Counsellor at Law

1800 Chapel Avenue West, Cherry Hill, New Jersey  08002
   (856) 665-2121http://www.taxesq.com