Being Audited by the IRS – IRS Tax Audit Help, Former IRS – Miami, Ft.Lauderdale, Palm Beaches

May 14, 2013
Written by: Fresh Start Tax

 

Being Audited by the IRS – IRS Tax Audit Help – , Former Agents – Miami, Ft.Lauderdale, Palm Beaches    954-492-0088



 
If you are being audited by the Internal Revenue Service and need IRS tax audit help it only makes sense to hire former IRS agents who were office audit, revenue agents, former managers and former IRS appeals agents in the local South Florida IRS offices.
With over 60 years of direct working experience in the local  South Florida Internal Revenue Service office, we are tax experts in IRS tax audit help.
We have worked in the local, district, and regional offices of the Internal Revenue Service.
 
We have also scored individual and business tax returns at the regional tax offices of the Internal Revenue Service and know the exact process of why and how tax returns are selected for tax audit so it only makes sense that we could help defend your tax return.
If you will wind up owing money as a result of being audited by the Internal Revenue Service we can go ahead and work out a tax settlement as well so do not be worried by an IRS audit letter. We have resolved hundred and hundreds of IRS audits over the years.
 
 

Selecting a return for a IRS Tax Examination if you are being Audited by the IRS.

 
Selecting a return for examination does not always suggest that the taxpayer has either made an error or been dishonest. In fact, some examinations result in a refund to the taxpayer or acceptance of the return without change.
The overwhelming majority of taxpayers files 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.

Taxpayer Rights if you are being Audited by the IRS

 
 
The IRS trains its employees to explain and protect taxpayers’ rights throughout their contacts with taxpayers.
These IRS audits 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.

 
 

How Returns Are Selected fora IRS Tax Audit  Examination

 
 
The IRS selects returns using a variety of methods, including:
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.
Some 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.
 

IRS Computer Scoring.

 
 
Some 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.
Large Corporations. The IRS examines many large corporate returns annually.
Information Matching. 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. Over 1.4 million tax returns are selected on income matching IRS tax audits.
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 examination. Usually partnership and corporate tax returns are the most heavily related spinoff tax examination 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. The IRS specific market segment tax audit is usually conducted by an IRS revenue agent who was highly trained and skilled in a particular area of expertise dealing with one or two specific industries. These are very sharp and intelligent IRS auditors and some of the most highly trained.
 
 

Being Audited by the IRS – IRS Examination Methods

 
 
An 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 auditor will explain the reason for any proposed changes. Most taxpayers agree to the changes and the audits end at that level.
 

Appeal Rights – IRS Tax Audit Appeal Help

 
 
IRS 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.
 

Being Audited by the IRS – IRS Tax Audit Help – Miami, Ft.Lauderdale, Palm Beaches

 
 

Filed Under: IRS Tax Audit

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