Got a letter from a tax agency? Don’t ignore it.
In most cases, a letter from the IRS, FTB, EDD, or CDTFA is not an emergency. Rather, it is a notification of a deadline. More often than not, those that ignore government letters will be left with fewer options and a higher cost. Susan will evaluate the letter you received, answer it on your behalf, and take care of each interaction with the agency. You do not have to talk to a government agent on your own.
- CA License #96754: IRS Licensed Practitioner
- IRS, FTB, EDD, and CDTFA
- Serving Shasta County since 2007
Proposed Changes to Your Tax Return
Dispute Amount: In Progress
Talk to the IRS Directly: No
Federal and State Agencies, Every Type of Notice
Susan is licensed to act as a representative for taxpayers when dealing with both the IRS and California taxing authorities. If there is a dollar amount or a response deadline, be sure to mention it during your call. (530)-221-1609.
- CP Notices: Math errors, dollar amounts due, proposed changes (CP2000, CP503, CP504).
- Audit correspondence: Both mail and office examination support.
- Installment agreements and penalty abatement assistance.
- 940 and 941 discrepancies on your quarterly federal payroll taxes.
- Income tax notices and proposed assessments from the Franchise Tax Board.
- Collection notices from FTB for liens and levy issues.
- EDD: audits of payrolls.
- Quarterly payroll discrepancies on Form DE 9 and DE 9C.
- Worker classification audits by EDD (employee vs. contractor); unemployment insurance and SDI assessment disputes.
- Sales tax audits and deficiencies by The California Department of Taxes and Fee Administration.
- Voluntary disclosure of back-period filing requirements.
- Nexus determinations for businesses selling across California.
- Assist with penalties and interest abatement.
- Audits for compliant vs non-compliant sales.
Redding Tax Representation That Goes Beyond Forwarding the Letter
Most tax notice situations are not as serious as they appear. Also, some proposed tax assessments are made completely by mistake. Susan will review your notice and verify the source data to confirm whether or not the notice you received is valid. Then, she will provide the best way to approach responding. If you hire Susan, she can communicate directly with the agency on your behalf. She understands it can be stressful dealing with tax authorities on your own. The benefit of having a licensed accountant represent you shows the authorities you have someone who understands taxation as well as they do and this can provide a more structured and professional correspondence.
- Your Tax Noticed Explained Simply What triggered the notice and what is being claimed? What are your options available? Prior to communicating with anyone at the taxing authority about the notice, you should know where you stand.
- Authority to represent you before the IRS (Form 2848). Filed in advance so that she may represent should you be contacted by an IRS agent. You will no longer be required to personally receive the call. All correspondence will be done via Susan.
- Preparation of documents. Documents will be prepared and submitted along with any supporting documentation that was requested by the taxing authority. Supporting documentation could include receipts, previous years' tax returns, payroll records, or any other supporting documentation necessary to support a response to a notice.
- Support during audits. Review of the same documentation requested by the auditor. Verification of whether or not the audit results were accurate.
- Payroll Tax Issues. Review of Forms 940 and 941 in addition to California's Employment Development Department (EDD) quarterly reports compared to payroll records. Resolution of disputes with California EDD concerning worker classifications.
- Sales Taxes. Responses to notices of assessment from California's Department of Tax & Fee Administration (CDTFA). Analysis of Taxable Nature of Products/Services Being Assessed. Sales tax audit support also available.
- Penalties and Interest Abatement. Where a legitimate reason exists for seeking relief from penalties and/or interest for a first-time penalty relief due to reliance upon professional advice or an error in procedure by the taxing authority. Bank levy notice response and levy removal assistance.
Included in this service:
- Reviewing the same documents that the examiner will review
- Verification of accuracy of examination findings
- Defend overstated or unsupported items
- Correspondence examinations with IRS
- Participate with you during an office examination
- Abatement penalty/reduction of interest requests
- Representation before the Tax Court or appeals litigation
- CP2000: underreported income proposed changes from the IRS
- CP503 & CP504: balance due notice from the IRS
- Letter 566: audit correspondence exam from the IRS
- FTB notices: proposed assessment, collection/lien activity
- EDD notice of assessment: results of payroll audit
- CDTFA notice of determination: Sales tax assessment
- Letters from the IRS and state regarding discrepancies
- Bank levy notices, intent to levy or active levies commonly from missed sales tax reportings. California Department of Tax and Fee Administration audit representation.
Don’t call the number on the notice. Call Susan first. Most notices allow for a 30-60 day response window. Responding incorrectly may result in waiving your ability to contest. Please don’t wait until the last moment to call. Susan needs adequate time to understand the situation and plan the best way of moving forward.
The Agency Has Trained Examiners. You Should Have a CPA
Agents from the IRS and states aren’t adversarial, but they are professionals. They know exactly what they’re looking for. They know the right questions to ask in order to get the largest defensible amount possible unless someone who has credentials will challenge them when necessary. Susan understands taxation just as well as they do and knows how to defend against unwarranted claims in a respectful and professional manner.
An unlicensed tax preparer, a family member who uses tax preparation software, or a bookkeeper can't legally act as your representative when it comes to dealings with the Internal Revenue Service (IRS) and the State of California's taxing authorities. As a licensed California CPA, she is authorized to represent you in front of all applicable federal and state agencies.
All proposed assessments are not always accurate. CP2000 notices are created through the Automated Underreporter Programs. Susan compares the same data the auditor uses to find inconsistencies. She has assisted many clients in the reduction of amounts due by working closely with the auditor.
She is familiar with the same rules that the examiner will be applying. Each section, including, but not limited to, payroll taxes, sales taxes, income taxes and penalty abatement appeals, has different processes and timeframes for appealing. She knows what arguments are worthy of pursuing, what documentation matters most, and what position(s) may lower the original assessment.
Once Susan files a power of attorney, the communication is directly with her, not you. This matters when you are nervous about speaking to anyone at the IRS, when the issues are technical, or when the agent requests information in a format that an non-accountant might not understand. Susan keeps you informed during the process.
Susan will assist in responding to notices, providing information for proposed changes, and assisting with letters stating that there is a balance due. We charge a flat fee upon completion of our review of the notice.
Assistance in correspondence and in-office examinations, review of your records and dispute of their findings as necessary. Priced individually after we have reviewed your situation.
Audits regarding payroll or sales tax. Each is priced individually according to the time frame of the audit and the amount of documentation required.
Bring your notices to the first meeting which is complimentary. She will discuss representation and associated costs.
What Happens After You Call About a Notice?
Describe your notice, including the agency name and location, notice type, amount of money involved, and deadline dates. Based on your description, she will explain what your notice really means, how serious it is, and what kind of response you may expect to receive from the agency. No charges are incurred during this conversation. Should you want Susan to represent you, she will provide an estimated cost and have you fill out a power of attorney.
After receiving the details of your notice and the information contained within the supporting documents, she will thoroughly review both the notice itself and all supporting documents. These could include your original return, agency records, payroll reports, sales records, and any other document that the notice requests.Susan will determine whether their findings appear accurate and provide options for resolution.
Using the results of her review of your notice and supporting documents, she prepares a written response to the agency and attaches any supporting documentation. In many cases, these submissions are made electronically. In addition to making these electronic submissions, she maintains a file copy of all communications made during the course of this representation.
Once she receives the agency’s final determination, she will contact you to review. Susan will then provide options and assist you in obtaining full resolution.
Common Questions About IRS and State Tax Representation
Many IRS notices, particularly CP2000 under-reporter notices, may contain errors. When the IRS spots a discrepancy in their records and your return, they generate an automatic notice. There is typically a simple explanation for why their records did not match your return. If you contact the agency prior to contacting Susan, you may waive your right to challenge the assessment and obligate yourself to pay more than you actually owe.
Audit support represents the ability of a licensed CPA like Susan to review all of the same documents reviewed by the auditor, verify that proposed amounts are accurate, and defend you against overstated or incorrect amounts.Most exams conducted by the IRS and state agencies fall under this definition.Full audit engagement refers to providing a formal audit with work papers. Susan no longer performs full audit engagements, but will assist you in locating a specialist in the area necessary.
During an audit by the EDD regarding payroll, there are generally only two areas of dispute: worker classification (the EDD thinks you've improperly classified a person working for you as a 1099 contract worker instead of a W-2 employee), or wage discrepancies (your DE 9/DE 9C filings do not match your Federal 940 and 941 payroll records.) Susan compares your payroll records against those of the EDD and then provides a response based upon her findings. Due to the high level of specificity required when disputing classifications as employees vs. independent contractors in California (due to the impact of the new AB5 law), this is an area where the right documentation could be critical.
Disputes about assessments of taxes owed by the CDTFA are common. Before paying, it may be wise to check into possible exemptions. In California, sales tax is charged on tangible personal property unless the sale qualifies for a specific exemption. Unfortunately, CDTFA auditors occasionally misapply the taxability rules, particularly for businesses that have a combination of taxable and non-taxable sales, or for businesses that sell services with components that are tangible. During her evaluation of the particular transactions being challenged by the CDTFA, she will determine if all categories are correctly identified according to the California Revenue and Taxation Code. She also identifies applicable support documentation and/or relevant law to refute the assessments.
Possibly. There may be opportunities to reduce or eliminate penalties based on individual circumstances. The Internal Revenue Service (IRS) offers first-time abatement to taxpayers who have been compliant and do not have a prior history of failure to comply with tax filing/paying requirements. Additionally, reasonable cause abatement is also available when a taxpayer has experienced a severe illness, natural disaster, or relied upon poor professional advice, etc. Both types of abatement requests are available for California agencies. Within our engagement, Susan will determine which of these two abatement options may apply to your situation and submit a formal application for this relief.
No. Susan is permitted to represent you on a return that she did not prepare. Part of what she will do under your representation agreement is review the return you originally filed along with all supporting documentation. If during the review she notices any errors made by your original preparer she will inform you. There may be an opportunity to amend the return to correct or resolve the notice.
Received a notice? Review with Susan.
The initial consultation is complimentary. Tell Susan about your tax notice and she will help you understand.