Received Notice/Letter IRS Tax Audit – Experienced Audit Representation, Former IRS, Ft.Lauderdale, Miami 954-492-0088
If you have received a notice or letter from the Internal Revenue Service indicating that they may proceeding with an IRS tax audit call us today and speak to seasoned and experienced tax professionals who have handled hundreds of IRS tax audits right here in South Florida.
We are comprised of tax attorneys, certified public accountants, enrolled agents, and former IRS agents and managers.
We have over 60 years of direct work experience in the local South Florida IRS offices are familiar with all the procedures, all the protocols, and all the settlement strategies to get you the very very best results possible during an IRS tax audit.
Should you wind up owing any money as a result of your IRS tax audit we will be able to take the case to appeals and reach a tax settlement with the Internal Revenue Service.
Do not let a IRS notice or letter from indicating your tax audit worry, scare or bring anxiety to your life.
Being former IRS agents we understand the stress that this causes people so it only makes sense to hand this off to skilled tax professionals who’ve been practicing their craft since 1982.
We are A+ rated by the Better Business Bureau and are the affordable and trustworthy tax firm in South Florida.
Received an IRS Notice/ Letter for a IRS Tax Audit, Here are some Facts
What is the scope of a IRS tax audit?
An IRS audit is a review/examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate.
IRS Publication 556, Examination of Returns, Appeal Rights and Claims for Refund explains the audit process in more detail.
IRS Tax Audit Selection
Selecting a return for audit does not always suggest that an error has been made.
Tax Returns are selected using a variety of methods, including:
- Random selection and computer screening – sometimes returns are selected based solely on a statistical formula.
- Document matching – when payor records, such as Forms W-2 or Form 1099, don’t match the information reported.
- Related examinations – 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 audit.
IRS Tax Audit Methods
An audit 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). The IRS will tell you what records are needed. Audits can result in no changes or changes. Any proposed changes to your return will be explained. Many times if you are represented by a tax professional the IRS tax audit will happen in the office of the tax professional.
The IRS Tax Audit Notification
Should your account be selected for audit, you will be notified in two ways:
- By mail, or
- By telephone
In the case of a telephone contact, the IRS will still send a letter confirming the audit. E-mail notification is not used by the IRS. If you ever receive an email notification from the Internal Revenue Service you should immediately contact the IRS letting them know of this contact because they are usually sent by criminals or scam artists.
Your Rights During an IRS Tax Audit
Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund processes.
These taxpayers rights include:
- A right to professional and courteous treatment by IRS employees.
- A right to privacy and confidentiality about tax matters.
- 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.
- A right to representation, by oneself or an authorized representative.
- A right to appeal disagreements, both within the IRS and before the courts.
IRS Tax Audit Length
The length of each audit varies depending on the type of audit, the complexity of items being reviewed, the availability of information being requested, the availability of both parties for scheduling of meetings and your agreement or disagreement with the findings. As a general rule office audits are usually one or two day audits. In the case of field audits they can last anywhere from two days to one year depending on the scope or complexity of the IRS tax audit.
Tax Records you may need to bring
You will be provided with a written request for specific documents needed. The Internal Revenue Service will always send out a detailed list of all the documents they need to close their tax audit. You should always understand that that audit list could be expanded as the audit continues.
The law requires you to retain records used to prepare your return. Those records generally should be kept for three years from the date the tax return was filed.
The IRS does accept some electronic records. If records are kept electronically, the IRS may request those in lieu of or in addition to other types of records.
Contact your auditor to determine what can be accepted to ensure a software program is compatible with the IRS’s.
IRS Tax Audit Determinations
An audit can be concluded in three ways:
- No change: an audit in which you have substantiated all of the items being reviewed and results in no changes.
- Agreed: an audit where the IRS proposed changes and the taxpayer understands and agrees with the changes.
- Disagreed: an audit where the IRS has proposed changes and the taxpayer understands, but disagrees with the changes.
What Happens When You AGREE With The Audit Findings?
If you agree with the audit findings, you will be asked to sign the examination report or a similar form depending upon the type of audit conducted.
If money is owed, there are several payment options available. Publication 594, The IRS Collection process, explains the collection process in detail.
If you are going to go money to the Internal Revenue Service three options will exist to deal or settle your case with the Internal Revenue Service.
Based on your current financial statement the IRS will either place you into a currently not collectible status, ask you to make monthly installment payments or advise you that you are a tax settlement candidate.
What Happens When You DISAGREE with the Audit Findings?
A conference with a manager may be requested for further review of the issue or issues. In addition, Fast Track Mediation or an Appeal request may be filed.
