Business Consulting and Tax Controversy Team Up to Defeat IRS Audit
Client:
Owners of a chain of car wash stations
Challenge:
The IRS selected the client’s car wash locations to perform an audit and search for unrecorded income. The audit extended to two years of the client’s personal tax returns and those of his parents. The revenue agent asserted that millions of dollars of income had gone unrecorded within the time span, leading to hundreds of thousands of dollars in additional taxes with interest and penalties.
Strategy:
Using his vast knowledge of IRS tools and techniques, one of The Fineman West partners was recognized that the revenue agent was using a specialized technique guide. Using this “inside” knowledge, Fineman West’s audit staff prepared a more accurate analysis than that of the agent, effectively refuting his claims.
It wasn’t tax acumen alone that solved this case; business consulting and negotiating experience were also necessary. The lead audit partner helped the client understand that settling for a smaller tax bill was more financially advantageous than dragging out the case to try to pay nothing. He also took a firm stance with the auditor, turning down requests for extensions, and forcing a quick and advantageous settlement for the client.
Result:
Fineman West was able to synergize the efforts of multiple departments, using the varied expertise of several individuals in business consulting, negotiation, and tax controversy to considerably reduce the client’s assessed tax and interest liability and eliminate the assessed penalties. Ready to transform your business? Contact us today at (213) 688-9898 or info@fwllp.com.
