Audit by the IRS – Former Local IRS Agents – Stop the WORRY – Miami, Ft.Lauderdale, West Palm, Boca Raton, Florida Keys    954-492-0088

 
We are comprised of tax attorneys, certified public accountants, and former IRS agents. We have over 60 years of direct working experience in the local South Florida offices as well as in the district and regional offices of the Internal Revenue Service.
Our firm has over 206 years of professional tax experience and we are experts in IRS tax audits.
Come and visit us for a free consultation and let us go ahead and stop the worry in the stress that occurs when you are audited by the IRS.
We have handled hundreds and hundreds of IRS audits since 1982 right here in South Florida. We are one of the most experienced tax firms when it comes to IRS representation and IRS problem-solving.
Our former IRS agents have worked as revenue officers, revenue agents, IRS tax instructors, IRS audit managers, and IRS teaching instructors at the regional offices of the Internal Revenue Service.
Call us today and stop the worry right now. 1-866-700-1040
Why IRS audits tax returns.
The IRS examines (audits) tax returns to verify that the tax reported is correct. Selecting a  tax or business return for examination does not always suggest that the taxpayer has either made an error or been dishonest. In fact many tax examinations result in a refund to the taxpayer or acceptance of the return without change.
The overwhelming majority of taxpayers files tax  returns and make payments timely and accurately. Taxpayers have a right to expect fair and efficient tax administration from the IRS, including verification that taxes are correctly reported and paid with enforcement actions against those who fail to comply voluntarily.
What are your rights  during an audit by the IRS
The IRS trains its employees to explain and protect taxpayers’ rights throughout their contacts with taxpayers. Over the last five years IRS is done excellent job advising taxpayers of their rights.
These rights  should include:
a. A right to professional and courteous treatment by IRS employees.
b. A right to privacy and confidentiality about tax matters.
c. A right to know why the IRS is asking for information, how the IRS will use it and what will happen if the requested information is not provided.
d. A right to representation, by oneself or an authorized representative.
e. A right to appeal disagreements, both within the IRS and before the courts. We have a former IRS appeals agent on staff who has worked in the appeals position for over 35 years
How Tax and Business Returns Are Selected fora Tax Examination
The IRS selects returns using a variety of methods,  these are the most common methods used by IRS.
Potential participants in abusive tax avoidance transactions .
Some returns are selected based on information obtained by the IRS through efforts to identify promoters and participants of abusive tax avoidance transactions.
Examples include information received from “John Doe” summonses issued to credit card companies and businesses and participant lists from promoters ordered by the courts to be turned over to the IRS.
 The DIF process or the Computer Scoring Process. 
Each tax return receives a DIF score. The higher the DIF the greater chance of a IRS tax audit.
Some  tax returns are selected for examination on the basis of computer scoring.  Computer programs give each return numeric “scores”. The Discriminant Function System (DIF) score rates the potential for change, based on past IRS experience with similar returns.
The Unreported Income DIF (UIDIF) score rates the return for the potential of unreported income. IRS personnel screen the highest-scoring returns, selecting some for audit and identifying the items on these returns that are most likely to need review. After reviewing thousands of tax returns is easy to spot unreported income. If you think that is the case with your tax return you absolutely need to seek a tax professional to represent you if you are audited by the IRS.
Large Corporations.
The IRS examines many large corporate returns annually. IRS has special revenue agents group that deals solely with large corporations. No company that has in excess of $1 million in annual revenue should go into the IRS unrepresented.
Information Matching.
IRS audits 1.4 million tax returns due to in formation matching. It collects billions and billions of dollars as a result of taxpayers not reporting W-2 and 1099 income. Information matching is a steady stream of revenue for the Internal Revenue Service. It is the easiest way for IRS to pick up revenue dollars during an IRS audit.
Some returns are examined because payer reports, such as Forms W-2 from employers or Form 1099 interest statements from banks, do not match the income reported on the tax return.
Related Examinations.
Tax Returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for examination.
Other types of tax audits
Area offices may identify returns for examination in connection with local compliance projects. These projects require higher level management approval and deal with areas such as local compliance initiatives, return preparers or specific market segments.
Tax Examination Methods
An  IRS tax examination may be conducted by mail or through an in-person interview and review of the taxpayer’s records. The interview may be at an IRS office (office audit) or at the taxpayer’s home, place of business, or accountant’s office (field audit).
Taxpayers may make audio recordings of interviews, provided they give the IRS advance notice. If the time, place, or method that the IRS schedules is not convenient, the taxpayer may request a change, including a change to another IRS office if the taxpayer has moved or business records are there.
The audit notification letter tells which records will be needed. Taxpayers may act on their own behalf or have someone represent or accompany them. If the taxpayer is not present, the representative must have proper written authorization.
The IRS tax auditor will explain the reason for any proposed changes. Most taxpayers agree to the changes and the audits end at that level. As a general rule 80% of all taxpayers settle at this level.
Your Appeal Rights  after an IRS tax audit
Appeal Rights are explained by the examiner at the beginning of each audit.
Taxpayers who do not agree with the proposed changes may appeal by having a supervisory conference with the examiner’s manager or appeal their case administratively within the IRS, to the U.S. Tax Court, U.S. Claims Court or the local U.S. District Court.
If there is no agreement at the closing conference with the examiner or the examiner’s manager, the taxpayer has 30 days to consider the proposed adjustments and their next course of action.
If the taxpayer does not respond within 30 days, the IRS issues a statutory notice of deficiency, which gives the taxpayer 90 days to file a petition to the Tax Court. The Claims Court and District Court generally do not hear tax cases until after the tax is paid and administrative refund claims have been denied by the IRS.
The tax does not have to be paid to appeal within the IRS or to the Tax Court. A case may be further appealed to the U.S. Court of Appeals or to the Supreme Court, if those courts accept the case.
By calling us today you can speak directly to a former IRS appeals agent specialist who has over 25 years with the Internal Revenue Service and the Appellate Division alone
IRS Audit Technique Booklet
Audit Techniques Guides
IRS Audit technique guides or resource used by the Internal Revenue Service to go ahead and perform tax audits for various businesses industries and individuals.
If you are undergoing a tax audit it is best for you to review these audit technique guides to understand the different issues and the processes that IRS we used to conduct their tax audit.
These Audit Techniques Guides  help IRS examiners during audits by providing insight into issues and accounting methods unique to specific industries. While ATGs are designed to provide guidance for IRS employees, they’re also useful to small business owners and tax professionals who prepare returns.
ATGs explain industry-specific examination techniques and include common, as well as, unique industry issues, business practices and terminology.
Tax Audit Guidance is also provided on the examination of income, interview techniques and evaluation of evidence.
So they may be helpful for business and tax planning purposes.
 
Audit by the IRS – Former Local IRS Agents – Stop the WORRY – Miami, Ft.Lauderdale, West Palm, Boca, Florida Keys