Skip to main content
IRS Audit

Audit Reconsideration Resolves $200,000 Back Taxes Problem in Boca Raton

By June 27, 2014June 18th, 2022No Comments

We recently received good news from the IRS that it reversed a tax assessment in excess of $200,000 for back taxes against our Boca Raton client.

Needless to say our client was extremely happy with the outcome as he and his wife had many sleepless nights stressing over their IRS tax problems. They were especially fearful of an IRS wage levy which would leave the husband with a significantly reduced take-home paycheck.

The back taxes were assessed because the taxpayer had failed to file his 2015 tax return. When you fail to file your tax return, the IRS will eventually prepare a return for you. This return is called a Substitute for Return (SFR) and is based on information reported to the IRS by third parties. When the IRS prepares an SFR it will not consider all your allowable expenses and may not use the proper filing status, resulting in an overstatement of your tax liability.

The most common method to deal with an SFR is to file an original tax return and submit it for audit reconsideration. We reviewed the SFR to determine the items that caused the tax assessment. In addition to the taxpayer’s wages the IRS included cancellation of debt income and income from an S corporation on the return.

The cancellation of debt income was from the foreclosure of the taxpayer’s principal residence and thus excludable from taxable income. We prepared and included the appropriate form with the tax return and provided adequate documentation. Based upon this information the IRS removed the debt cancellation from income.

As a result of a mistake or fraud the S Corporation reported income to the taxpayer when it actually incurred a loss. Again we attached the appropriate form to the return with a detailed explanation and the IRS reduced the reported income to zero.

The taxpayer was a sales manager covering a large area of South Florida and incurred a significant amount of unreimbursed travel expenses which we deducted as it was not included in the SFR prepared by the IRS.

Finally, the return we prepared for the taxpayer was a joint return with his wife and he claimed an exemption for her. The IRS had used the filing status of married filing separately which results in higher tax rates.

The above adjustments not only relieved the taxpayer of a $200,000 back tax bill but resulted in a small refund. If you live or work in Boca Raton or elsewhere in Palm Beach or Broward Counties and need help with back tax problems call us today at 561-826-9303 for a free consultation.

Contact Us 

You deserve the best in IRS tax representation, tax preparation, and tax planning services. At East Coast Tax Consulting Group, you’ll work with a licensed CPA who will handle your case from beginning to end. We invite you to contact our team to schedule a free, confidential consultation.

[gravityforms id="5" title="false" description="false" ajax="true" tabindex="199"]
<script type="text/javascript">var gform;gform||(document.addEventListener("gform_main_scripts_loaded",function(){gform.scriptsLoaded=!0}),window.addEventListener("DOMContentLoaded",function(){gform.domLoaded=!0}),gform={domLoaded:!1,scriptsLoaded:!1,initializeOnLoaded:function(o){gform.domLoaded&&gform.scriptsLoaded?o():!gform.domLoaded&&gform.scriptsLoaded?window.addEventListener("DOMContentLoaded",o):document.addEventListener("gform_main_scripts_loaded",o)},hooks:{action:{},filter:{}},addAction:function(o,n,r,t){gform.addHook("action",o,n,r,t)},addFilter:function(o,n,r,t){gform.addHook("filter",o,n,r,t)},doAction:function(o){gform.doHook("action",o,arguments)},applyFilters:function(o){return gform.doHook("filter",o,arguments)},removeAction:function(o,n){gform.removeHook("action",o,n)},removeFilter:function(o,n,r){gform.removeHook("filter",o,n,r)},addHook:function(o,n,r,t,i){null==gform.hooks[o][n]&&(gform.hooks[o][n]=[]);var e=gform.hooks[o][n];null==i&&(i=n+"_"+e.length),gform.hooks[o][n].push({tag:i,callable:r,priority:t=null==t?10:t})},doHook:function(n,o,r){var t;if(r=Array.prototype.slice.call(r,1),null!=gform.hooks[n][o]&&((o=gform.hooks[n][o]).sort(function(o,n){return o.priority-n.priority}),o.forEach(function(o){"function"!=typeof(t=o.callable)&&(t=window[t]),"action"==n?t.apply(null,r):r[0]=t.apply(null,r)})),"filter"==n)return r[0]},removeHook:function(o,n,t,i){var r;null!=gform.hooks[o][n]&&(r=(r=gform.hooks[o][n]).filter(function(o,n,r){return!!(null!=i&&i!=o.tag||null!=t&&t!=o.priority)}),gform.hooks[o][n]=r)}});</script> <div class='gf_browser_unknown gform_wrapper gform_wrapper_original_id_5 gravity-theme whitepaper-cta-popup_wrapper' id='gform_wrapper_1098550663' ><div id='gf_1098550663' class='gform_anchor' tabindex='-1'></div><form method='post' enctype='multipart/form-data' target='gform_ajax_frame_1098550663' id='gform_1098550663' class='whitepaper-cta-popup' action='/audit-reconsideration-resolves-200000-back-taxes-problem-in-boca-raton/#gf_1098550663' novalidate> <div class='gform_body gform-body'><div id='gform_fields_1098550663' class='gform_fields top_label form_sublabel_below description_below'><div id="field_5_2" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_2"><label class='gfield_label' for='input_1098550663_2' >First Name<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_text'><input name='input_2' id='input_1098550663_2' type='text' value='' class='large' tabindex='199' placeholder='First Name' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_3" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_3"><label class='gfield_label' for='input_1098550663_3' >Last Name<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_text'><input name='input_3' id='input_1098550663_3' type='text' value='' class='large' tabindex='200' placeholder='Last Name' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_1" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_1"><label class='gfield_label' for='input_1098550663_1' >Email Address<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_email'> <input name='input_1' id='input_1098550663_1' type='email' value='' class='large' tabindex='201' placeholder='Email Address' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_4" class="gfield gform_validation_container field_sublabel_below field_description_below gfield_visibility_visible" data-js-reload="field_5_4"><label class='gfield_label' for='input_1098550663_4' >Comments</label><div class='ginput_container'><input name='input_4' id='input_1098550663_4' type='text' value='' autocomplete='new-password'/></div><div class='gfield_description' id='gfield_description_5_4'>This field is for validation purposes and should be left unchanged.</div></div></div></div> <div class='gform_footer top_label'> <button type='submit' onclick='if(window["gf_submitting_1098550663"]){return false;} if( !jQuery("#gform_1098550663")[0].checkValidity || jQuery("#gform_1098550663")[0].checkValidity()){window["gf_submitting_1098550663"]=true;} ' onkeypress='if( event.keyCode == 13 ){ if(window["gf_submitting_1098550663"]){return false;} if( !jQuery("#gform_1098550663")[0].checkValidity || jQuery("#gform_1098550663")[0].checkValidity()){window["gf_submitting_1098550663"]=true;} jQuery("#gform_1098550663").trigger("submit",[true]); }' id='gform_submit_button_1098550663' class='gform_button button om-trigger-conversion'>Submit</button> <input type='hidden' name='gform_ajax' value='form_id=5&amp;title=&amp;description=&amp;tabindex=199' /> <input type='hidden' class='gform_hidden' name='is_submit_5' value='1' /> <input type='hidden' class='gform_hidden' name='gform_submit' value='5' /> <input type='hidden' class='gform_hidden' name='gform_unique_id' value='' /> <input type='hidden' class='gform_hidden' name='state_5' value='WyJbXSIsIjE3OGJjZmUyNjg3ZTQyOGFjZTRkZjMzZjBiOTAzYTRlIl0=' /> <input type='hidden' class='gform_hidden' name='gform_target_page_number_5' id='gform_target_page_number_5' value='0' /> <input type='hidden' class='gform_hidden' name='gform_source_page_number_5' id='gform_source_page_number_5' value='1' /> <input type='hidden' name='gform_random_id' value='1098550663' /><input type='hidden' name='gform_field_values' value='' /> </div> </form> </div> <iframe style='display:none;width:0px;height:0px;' src='about:blank' name='gform_ajax_frame_1098550663' id='gform_ajax_frame_1098550663' title='This iframe contains the logic required to handle Ajax powered Gravity Forms.'></iframe> <script type="text/javascript"> gform.initializeOnLoaded( function() {gformInitSpinner( 1098550663, 'https://www.eastcoasttaxconsulting.com/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery('#gform_ajax_frame_1098550663').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_1098550663');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_1098550663').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){jQuery('#gform_wrapper_1098550663').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_1098550663').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_1098550663').removeClass('gform_validation_error');}setTimeout( function() { /* delay the scroll by 50 milliseconds to fix a bug in chrome */ jQuery(document).scrollTop(jQuery('#gform_wrapper_1098550663').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_5').val();gformInitSpinner( 1098550663, 'https://www.eastcoasttaxconsulting.com/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery(document).trigger('gform_page_loaded', [1098550663, current_page]);window['gf_submitting_1098550663'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}setTimeout(function(){jQuery('#gform_wrapper_1098550663').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_1098550663').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [1098550663]);window['gf_submitting_1098550663'] = false;wp.a11y.speak(jQuery('#gform_confirmation_message_1098550663').text());}, 50);}else{jQuery('#gform_1098550663').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger('gform_post_render', [1098550663, current_page]);} );} ); </script>
[gravityforms id="5" title="false" description="false" ajax="true" tabindex="199"]
<div class='gf_browser_unknown gform_wrapper gform_wrapper_original_id_5 gravity-theme whitepaper-cta-popup_wrapper' id='gform_wrapper_682327712' ><div id='gf_682327712' class='gform_anchor' tabindex='-1'></div><form method='post' enctype='multipart/form-data' target='gform_ajax_frame_682327712' id='gform_682327712' class='whitepaper-cta-popup' action='/audit-reconsideration-resolves-200000-back-taxes-problem-in-boca-raton/#gf_682327712' novalidate> <div class='gform_body gform-body'><div id='gform_fields_682327712' class='gform_fields top_label form_sublabel_below description_below'><div id="field_5_2" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_2"><label class='gfield_label' for='input_682327712_2' >First Name<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_text'><input name='input_2' id='input_682327712_2' type='text' value='' class='large' tabindex='199' placeholder='First Name' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_3" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_3"><label class='gfield_label' for='input_682327712_3' >Last Name<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_text'><input name='input_3' id='input_682327712_3' type='text' value='' class='large' tabindex='200' placeholder='Last Name' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_1" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" data-js-reload="field_5_1"><label class='gfield_label' for='input_682327712_1' >Email Address<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_email'> <input name='input_1' id='input_682327712_1' type='email' value='' class='large' tabindex='201' placeholder='Email Address' aria-required="true" aria-invalid="false" /> </div></div><div id="field_5_4" class="gfield gform_validation_container field_sublabel_below field_description_below gfield_visibility_visible" data-js-reload="field_5_4"><label class='gfield_label' for='input_682327712_4' >Phone</label><div class='ginput_container'><input name='input_4' id='input_682327712_4' type='text' value='' autocomplete='new-password'/></div><div class='gfield_description' id='gfield_description_5_4'>This field is for validation purposes and should be left unchanged.</div></div></div></div> <div class='gform_footer top_label'> <button type='submit' onclick='if(window["gf_submitting_682327712"]){return false;} if( !jQuery("#gform_682327712")[0].checkValidity || jQuery("#gform_682327712")[0].checkValidity()){window["gf_submitting_682327712"]=true;} ' onkeypress='if( event.keyCode == 13 ){ if(window["gf_submitting_682327712"]){return false;} if( !jQuery("#gform_682327712")[0].checkValidity || jQuery("#gform_682327712")[0].checkValidity()){window["gf_submitting_682327712"]=true;} jQuery("#gform_682327712").trigger("submit",[true]); }' id='gform_submit_button_682327712' class='gform_button button om-trigger-conversion'>Submit</button> <input type='hidden' name='gform_ajax' value='form_id=5&amp;title=&amp;description=&amp;tabindex=199' /> <input type='hidden' class='gform_hidden' name='is_submit_5' value='1' /> <input type='hidden' class='gform_hidden' name='gform_submit' value='5' /> <input type='hidden' class='gform_hidden' name='gform_unique_id' value='' /> <input type='hidden' class='gform_hidden' name='state_5' value='WyJbXSIsIjE3OGJjZmUyNjg3ZTQyOGFjZTRkZjMzZjBiOTAzYTRlIl0=' /> <input type='hidden' class='gform_hidden' name='gform_target_page_number_5' id='gform_target_page_number_5' value='0' /> <input type='hidden' class='gform_hidden' name='gform_source_page_number_5' id='gform_source_page_number_5' value='1' /> <input type='hidden' name='gform_random_id' value='682327712' /><input type='hidden' name='gform_field_values' value='' /> </div> </form> </div> <iframe style='display:none;width:0px;height:0px;' src='about:blank' name='gform_ajax_frame_682327712' id='gform_ajax_frame_682327712' title='This iframe contains the logic required to handle Ajax powered Gravity Forms.'></iframe> <script type="text/javascript"> gform.initializeOnLoaded( function() {gformInitSpinner( 682327712, 'https://www.eastcoasttaxconsulting.com/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery('#gform_ajax_frame_682327712').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_682327712');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_682327712').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){jQuery('#gform_wrapper_682327712').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_682327712').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_682327712').removeClass('gform_validation_error');}setTimeout( function() { /* delay the scroll by 50 milliseconds to fix a bug in chrome */ jQuery(document).scrollTop(jQuery('#gform_wrapper_682327712').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_5').val();gformInitSpinner( 682327712, 'https://www.eastcoasttaxconsulting.com/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery(document).trigger('gform_page_loaded', [682327712, current_page]);window['gf_submitting_682327712'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}setTimeout(function(){jQuery('#gform_wrapper_682327712').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_682327712').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [682327712]);window['gf_submitting_682327712'] = false;wp.a11y.speak(jQuery('#gform_confirmation_message_682327712').text());}, 50);}else{jQuery('#gform_682327712').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger('gform_post_render', [682327712, current_page]);} );} ); </script>