Tax Professionals - Nguyen, Wilson, Chung & Associates, LLC

Contact us at 1-800-917-1118

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Tax Audit Defense

The NWC Tax tax attorneys monitor the changes in tax laws and assist our clients in the compliance of them. In the event of a tax audit, we represent and defend our clients before government agencies such as the Internal Revenue Service and various state taxing authorities.

We have experience in areas such as:

• Payroll Tax Audits

If you are an employer, you are required to file various employment tax returns at the federal, state, and sometimes local levels. There are numerous areas where payroll tax problems can arise. Example: As a business owner, when another person performs work for you, you must first correctly classify that person as an indepedent contracor or employee. Your tax responsibilities will depend on the correct worker classification.

• Sales Tax Audits

Most states have sales taxes imposed on businesses. Number of issues can arise that can lead to sales tax audits. An issue that can arise in sales tax audits include if the business was a wholesaler and determining who is the final end user of the product.

• Civil Tax Fraud Defenses/Appeals

The IRS can impose a 75% penalty for underpayments of tax that are attributable to fraud. However there must be clear and convincing evidence to prove that some part of the underpayment was due to civil fraud. Various defenses can be made on the imposition of the civil fraud penalty and we have experience in reducing or eliminating this penalty with careful appeals.

• Administrative Appeals

Taxpayers have important rights and number of adminstrative appeal processes are available when dealing with the IRS and/or state tax authorities. If you are faced with IRS problems or state tax problems, it is always in your interest to have a qualified tax professional to represent your interests and help you navigate through the bureaucracy.

• Trust Fund Recovery Penalty Defenses

The IRS takes collection of employment taxes very seriously because the employer actually hold the employee's money in trust until the employer makes a federal tax deposit in that amount. If the proper tax is not paid, the IRS can assess a 100% penalty on those who were responsible to pay over the employment taxes. However, the IRS sometimes assesses this penalty on employees of companies who cannot be properly considered a "responsible person." You need to consult with an experienced tax professionals to protect your rights in these instances.

• Unreasonable Compensation Defenses

The IRS can disallow corporate tax deductions for extraordinary salaries which the IRS claims were disguised dividends. This has become less of an issue with recent changes in tax rates.

• Hobby Losses/Passive Losses

The IRS may disallow certain losses as hobby or passive losses to offset your ordinary income. If the IRS has claimed that your business is a hobby or a passive venture and increased your tax liability, you need to consult with a tax professional to assist you.

• Theft/Casualty Losses

To properly claim a theft/casualty loss, there are a number of steps you need to take. Especially for causalty losses, proper documentation and appraisals are key to be able to defend against an audit.

• Ponzi Scheme Theft Losses

Some people have been taken advantage by various unscrupulous promoters. If you are a victim of a Ponzi scheme, there are various tax provisions that you need to know. New IRS provisions are more favorable to victims including allowing deductions for the principal as well as any income received over the years.