IRS Tax Audit – Most Common Types of Tax Audits – Former IRS Managers, Agents – Fresh Start Tax LLC – Tax Audit Representation

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We have worked hundreds and hundreds of IRS and Sales Tax audits. We are tax experts in Tax Audit Representation. 1-866-700-1040.

We are over 205 years of total tax experience and over 60 years of direct IRS work experience. We know all the policies and procedures for tax audits due to our extensive background with the IRS.

Should have any questions regarding an IRS tax audit contact us for a no cost professional consultation 1-866-700-1040.

Facts about IRS Tax Audits:

• The IRS audits a total of 1,391,581 tax returns a year,
• IRS is hiring 15,000 new IRS Agents under the new IRS budget,
• The IRS field agents complete more than 310,000 audits by office or business visits a year,
• IRS prosecutes over 3000 taxpayers a year for tax crimes,
• The IRS completes over 1,081,152 correspondence audits a year,
• IRS has installed new software tracking systems with the development of the CADE 2 computer to spot and recognize tax audits more proficiently.

The most common type of IRS Tax Audits

1. Front End Loaded Planning Time ( see below for a explanation )

The planned direct examination staff years  and the number of return closures are front end loaded into the plan. These resources are allocated, after consideration of work in process, prior to committing resources available to other compliance initiatives.

The planned direct examination staff years  and the number of case closures are front loaded into the plan. The objectives and time allocated may change from fiscal year to fiscal year.

Examples of front end loaded time are as follows:

1. Abusive Tax Avoidance Transactions,

2. Coordinated Industry Case (CIC) time,

3. Compliance Assurance Process (CAP) time,

4. Joint Committee,

5. National Research Program ,

6. Protection of Revenue Base ,

7. Compliance Initiative Projects,

8. Outreach Programs.
The most common of all tax audits is the DIF Audit.

Each tax return that is filed with the IRS is graded with a DIF number. A DIF score is a grade that your tax return receives when compared to other tax returns which is similar to yours. The higher the DIF and high your chance for a IRS tax audit.

You will never know your DIF, it is reserved for IRS personal only. A label with a DIF score is placed on your return by machine.

Discriminant Index Function (DIF) Overview

DIF as referenced in IRM 4.19.11.1.4, Sources of Returns for Classification, is a mathematical technique used to score income tax returns for examination potential.

These formulas were developed based on available NRP data. Each return measured under DIF receives a DIF score.

Generally, the higher the score, the greater the audit potential. The highest scored returns are made available to Examination upon request.

DIF mathematical formulas are confidential and for official use only. The DIF score assigned to a return should not be disclosed.
Types of DIF Returns Scored by the CADE 2 Computer of the IRS.

The following types of returns are computer scored under the DIF System:

a. Individual,

b. Corporation,

c. S Corporation,

d. Partnership,

e. Fiduciary.

Call us today to have the very best chance for a tax audit defense. 1-866-700-1040.

IRS Tax Audit – Former IRS Agents, Managers – Essex, Morris, Bergen, Passaic, Union – New Jersey – Tax Audit Representation