What Is An IRS Audit?

An IRS audit is when the IRS reviews your tax return to make sure you have reported your income and taxes correctly. The IRS can audit your return for any year, but most audits are conducted for returns filed in the last two years.

What Is An IRS Audit Representation Service?

An IRS audit representation service is a service that provides you with professional representation during an IRS audit. The tax professionals at Nesso Tax Group will work on your behalf to ensure the audit is conducted fairly and efficiently.

Types Of Audits

• Correspondence Audits: The IRS will contact you through the mail to request additional information about your return; this is the most common type of audit. There are 2 types of letters that you may get: The Simple Letter or The Audit Letter.
• Office Audit: The IRS will schedule an appointment for you to come to their office to discuss your return. You will be asked to bring specific documentation with you to the meeting.
• Field Audit: The IRS will schedule an appointment to meet with you at your home or place of business. This audit tends to be intrusive; therefore, it would be best if you’re not alone. A professional advisor from Nesso Tax can perfectly assist you.
• Line-By-Line Audits: The IRS will review your return line by line to ensure you have reported your income and taxes correctly. This is the most thorough type of audit, and it’s a random selection.

Understanding Taxes With Nesso Wealth

What Are Taxes?

A tax is an unavoidable financial fee the government charges its citizens. Taxes are a must nowadays, and you can’t avoid them. We all have to pay them, but no one really knows what they’re used for. Tax money funds various government programs, including infrastructure, education, and military spending.

The amount you pay in taxes depends on your income and tax bracket. Your tax bracket is the percentage of your income that you will pay in taxes. For example, if you’re in the 25% tax bracket, you will pay 25% of your income in taxes.

Types Of Taxes

• Payroll Tax: This is a tax on your wages. Your employer will withhold this tax from your paycheck and send it to the government.
• Corporate Tax: This is a tax on the profits of a corporation to fund federal projects.
• Sales Tax: This is a tax on the sale of goods and services. The amount you pay depends on the state you live in.
• Property Tax: This is a tax on the value of your property, such as your home or land.
• Tariff: This is a tax on imported goods; it’s imposed to improve and strengthen domestic businesses.
• Estate Tax: This is a tax on the value of your estate (property and possessions) after you die.

What Are Income Taxes?

Income tax is a type of tax that businesses and individuals are legally required to pay, based on the income they generate, to the government of the jurisdiction in which they reside. Taxpayers must file an annual income tax return to determine their exact tax obligations.

Income taxes provide revenue for all levels of government- federal, state, and local. This money funds public services like roads and schools, pays government debt, and provides goods for citizens. Some investments are exempt from income taxes, like bonds issued by a housing authority.

How They Work

The Internal Revenue Service is the government agency in charge of collecting taxes and enforcing tax laws in the United States.

The IRS has complex rules and regulations regarding reportable and taxable income, deductions, credits, etc. The IRS taxed every form of revenue, including wages, salaries, commissions, investments, and company profits.

The personal income tax goes towards government programs like Social Security, national security, and public schools and services.

Types Of Income Tax

Individual Income Tax: Individual income tax, also called personal income tax, is a state-imposed tax on an individual’s wages, salaries, and other types of earnings. Most people don’t pay taxes on all their income because of credits, deductions, and exemptions.

The IRS provides a variety of tax deductions and credits to individuals who want to reduce their taxable income. A deduction may lower your taxable income and the rate used to calculate your taxes. However, a tax credit reduces your income tax by giving you a larger refund of your withholding.

Business Income Tax: The IRS taxes income businesses earn from corporations, partnerships, self-employed contractors, and small businesses.

The corporation, its owners, or shareholders report their business earnings and then deduct their operational and capital expenses. Most of the time, the difference between their commercial income and operating and capital expenditures is regarded as taxable company profit.

State and Local Income Tax: Personal income taxes are levied in most states. However, eight states do not have personal income taxes for residents: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. On January 1, 2021, Tennessee eliminated its Hall tax on dividends and interest.

Why You Should Choose Us

• We Do What We Say: We’re known for being a reliable source of quality tax services.
• We Work On Deadlines: We understand the importance of meeting deadlines and continually work to get everything done on a proper timeline.
• We Have Your Best Interest In Mind:  We always have our clients’ best interests in mind, and we’re not afraid to fight for what they deserve.
• We’re A Team Of Professionals With Vast Experience: We have unmatched experience in the tax industry. Nesso Tax understands the ins and outs of the tax system better than any other advisor.

Our Tax Experts Can Help You With All-Tax Matters

• Personal Taxes: Let our multidisciplinary team of specialists at Nesso Tax assist you in filing your personal taxes and taking advantage of all the perks you’re eligible for.
• Business Taxes: Here at Nesso Tax, we provide an array of services to support your business – from payroll processing and bookkeeping to tax planning and preparation, audits and reviews, and beyond. We have years of experience working with companies similar to yours. Therefore, our team members understand the importance of partnering with an accountant who is intimately familiar with business owners’ unique challenges.
• Estate And Trust: Nesso Tax can help you manage your estates so that your loved ones are taken care of after you’re gone. If your estate is subject to Form 706 or Form 1041 filing, let Nesso Tax help you file with ease. 

Nesso Tax is the ideal option for high-net-worth families wanting to report all charitable donations throughout tax season correctly. Our professionals have the training and experience to handle even the most intricate gift tax filings.

Other aspects we cover:

• Business Tax Planning
• Tax Preparation
• Strategic Business Planning
• Cash Flow Management
• Small Business Accounting
• Litigation Support
• Payroll Services
• Bank Financing
• Succession Planning, and more.

How Our Process Works

At Nesso Tax, we love to make it easier for you. Our process is uncomplicated and easy to follow, and our team will assist and guide you without issues: 

• Meet With A Tax Strategist: The first step is to meet with one of our tax strategists. We’ll ask you a series of questions about your business, goals, and finances. This will help us better understand your business and what we can do to help you.
• Compile & Submit Your Documents: After our meeting, we’ll ask you to compile and submit your documents; this will give us the information we need to start working on your taxes.
• Let Us Do The Rest: Once we have all the information we need, we’ll work on your taxes. We’ll make sure everything is done correctly and filed on time. Our attorneys will handle your situation with ease.