IRS has specially trained Revenue Officers in the local field branches to work Large Dollar Cases. They also have a Large Dollar Case Unit, within the ACS unit, for those cases still in the collection computer system.
In working these cases, IRS will get into significantly more detail while investigating a taxpayer’s ability to pay. You will read more below on this.
It is absolutely necessary on these cases that you have professional representation because the IRS is more aggressive in handling these particular cases. Because of the dollar amount, the agent is looking for a cover up, deceit or fraud.
By all means, be represented by a professional tax firm for large dollar IRS cases.
I am a former IRS agent and teaching instructor with the IRS and here are some inside secrets about some of the financial investigation tools and sources that will take place during IRS investigations.
Whenever a IRS Agent get a case for back taxes the IRS will always ask for the taxpayer to give them a current financial statement and that serves as the basis for there investigation.
It also serves to let the IRS Agent IRS know whether you have perjured yourself or have been truthful with the Internal Revenue Service during the course of there investigation.
IRS all starts with the basics, a courthouse search for real property and DMV search. Those are called the basics.
Here is where it can get interesting.
Many times the IRS pulls credit reports from all three credit agencies. Credit reports contain a wealth of information.
The Credit Report can let the IRS know how much the average monthly charges are,what purchases you are making, what assets you have purchased. The kicker here is this, IRS can find out who has made inquiring and whether you have turned in a financial statement to that source.
IRS can summon the company for that finical statement you turned in and they will match up the financial statement that you gave the IRS.
Being a Former IRS agent I have seen few financial statements ever match up and the IRS can use that to there advantage. This will work to your disadvantage.
IRS also has there own internal locator.
The internal locator will have a incomes records over the last six years of all 1099’s, W-2s, tax returns or any third party reporting of income that has been given to Internal Revenue Service.
One of the new sources that IRS is picking up FBAR information that reports overseas bank and financial records. IRS can also inquire of a bank CTR of any cash activity over $10,000 or more.
IRS will then look to a very common search engine called Accuriant or Lexis Nexis used by many creditors today. The Accuriant search engine has over 37 billion current public records can detect fraud and verify identities and also help the IRS investigation. It is one of the go to tools that are used by the Internal Revenue Service.
The IRS will also look to other external sources. The public search engines such as Google, Bing, Yahoo, LinkedIn and Facebook and other social media can let the IRS agent know about your life habits.
Depending on the dollar amount of the case IRS can also use information from Passports, conduct 3rd party interviews, vessel and license checks at the courthouse all at the click button.
IRS commonly will check for Patents,Trademarks, Franchises, Licenses, Domain Name of a web site.
Since IRS cannot march inside your house how they can find out about your personal assets, simply summons your homeowners policy.
Modern technology has allow not only the IRS but any government agency to ability too find out a plethora of information about you at the click of a button.
Fresh Start Tax has a special team that only deals with Large Dollar IRS Cases.
We have a team of former IRS agents that have worked these cases while employed by the Internal Revenue Service. These cases require more experience because of the requirements that the IRS agents demand on these cases.
The IRS spends a lot more time looking at these cases and we know exactly what their questions will be. We try to remove the problem areas before the IRS gets to the case. Experience is needed to work Large Dollar Cases.
The IRS uses very experienced and specially trained agents to work these Large Dollar Cases.
These IRS agents have been around a long time and are highly seasoned. They are used to looking at the areas where most agents do not look.
If there are any issues of concern, be very careful not to represent yourself. These agents spend many hours working these cases and know how to find the proverbial “needle in the haystack”. As a general rule, these agents have been with the IRS for at least five to seven years.
Questions on Large Dollar Cases – Feel free to email us a question!!!
If IRS filed a substitute tax return for you, we can help!