Federal tax controversies can span the breadth of tax compliance and reporting – from the timing of revenue reporting to the deductibility of expenses and tax elections or disclosures for certain items. Our experienced tax professionals regularly represent clients before the IRS to resolve disputes that arise from examinations of returns – whether the examination is conducted in person or through correspondence. CRI acts as your advocate while being an intermediary, which benefits our clients in many ways – including reducing anxiety and stress surrounding the examination process.
IRS Penalty Exposure Reviews
Penalties are certainly not pleasant to consider, particularly when the penalties are imposed by the IRS. With the complexity of the Tax Code and related regulations and tax court decisions, penalties are sometimes difficult to avoid. Our proactive tax professionals can review positions taken in tax returns to determine the level of exposure that a client may face – in advance of tax examinations. In some cases, disclosures can be considered and/or elections can be made to minimize or eliminate the likelihood of penalties.
Some activities are best conducted in a taxable subsidiary company in order to avoid jeopardizing the tax-exempt status of the nonprofit. These activities may subject a nonprofit to unrelated business income tax (UBIT) on certain items. The IRS rules for exempt organizations are complex, but your organization can rely on our firm to stay up-to-date on those details. Specifically, CRI’s nonprofit CPA team analyzes potential IRS penalty exposure and makes recommendations for minimization and elimination.
State Voluntary Disclosure
State income taxation has become one of the more challenging areas of tax compliance. With countless requirements in each state, compliance has become more difficult with each passing year. In many instances states provide for voluntary disclosure of tax issues, including the failure to file returns and inaccurate apportionment of income among various states. Such disclosure programs can provide for waivers of penalties beyond the most recent tax years, but require careful consideration by CRI’s experienced tax professionals to determine the proper course of action for our clients.