Former IRS Agents, Managers for IRS Income, Business Tax Audits – Ft.Lauderdale, Miami, Palm Beaches, Boca – South Florida

by Fresh Start Tax | Jun 4, 2013 | IRS Tax Audit

Former IRS Agents, Managers for IRS Tax Audit

 
We are a local South Florida tax firm that specializes in IRS tax audits and IRS tax settlements.
It only makes sense if you are undergoing an IRS tax audit to hire former IRS agents and managers who have over 60 years of working directly in the local South Florida IRS offices.
As a result of all our years of experience in the local South Florida Internal Revenue Service, we know all the IRS audit techniques, IRS audit protocols, and all the IRS tax audit settlement formulas.
As former IRS agents and managers we taught new IRS agents their job therefore we know every single technique that will be used by the Internal Revenue Service.
Beside working as IRS auditors and revenue agents some on our staff have also worked in the IRS appeals offices.
We also are staffed with tax attorneys, tax lawyers and certified public accountants for more complicated matters.
We are one of the most experienced tax firms in South Florida handling the IRS tax audit.
We have been in private practice since 1982 right here in South Florida and have a A+ rating by the Better Business Bureau.
We are available for a free initial tax consultation and will conduct a free analysis of any tax audit you may be going through.
The hiring of any professional tax firm should surely ease the consequence of any tax issues that may arise as a result of the Internal Revenue Service auditing any income, business or corporate tax return.
 
 

IRS Use Audit Techniques Guides for Business Tax audits.

 
If you are going to experience in IRS business tax audit there are certain audit techniques that the IRS will follow. Most professional tax firms understand these audit technique guides. You can find these on a technique guides on our website or contact us directly to learn more.
These Audit Techniques Guides (ATGs) 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 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. By following the same format that IRS uses for an IRS tax examination  you can move forward worry free knowing you are following the exact rules and protocol set up by the Internal Revenue Service.
 
 

Commonly asked Questions for the IRS Tax Audits, both Individual and Business

 
Why was my individual or business tax return selected for audit?
When returns are filed, they are compared against “norms” for similar returns. The “norms” are developed from audits of a statistically valid random sample of returns. These returns are selected as part of the National Research Program which the IRS conducts to update return selection information.
The individual or business tax return is next reviewed by an experienced auditor.
At this point, the return may be accepted as filed, or if based on the auditor’s experience questionable items are noted, the agent will identify the items noted and the return is forwarded for assignment to an examining group.
Upon assignment to a local tax  group, the return is reviewed by the manager. The manager has the right to survey the case which means it has the right to tell the service center this is not a worthy tax return for an IRS tax audit.
Items considered in assigning a case are: factors particular to the area such as issues pertaining to construction, farming, timber industry, etc. that have specific factors and rules that apply.
Based on the review, the manager can accept the return or assign the return to an auditor.
The assigned auditor again reviews the return for questionable items and either accepts it as filed or contacts the taxpayer to schedule an appointment.
 
Where will the income or business  IRS Tax audit be held?
 
It depends on the type of audit being conducted.
Audits by Mail/Correspondence Audit.
Some audits are conducted entirely by mail. If the audit is conducted by mail, you will receive a letter from the IRS asking for additional information about certain items shown on the tax return such as income, expenses, and itemized deductions.
In-Person Audits are audits conducted either at a local IRS office or at your business location.
 
Can you request the tax audit be conducted at the IRS office instead of at your place of business?
 
If the income or business tax audit has been scheduled to be conducted at your location, it will generally be conducted where the books and records are located.
Requests to transfer the audit to another location, including an IRS office, will be considered but may not be granted. Treasury Regulation 301.7605-1(e), Time and place of audit, discusses the items considered when a request for a change in location is made. being a former IRS agent and instructor is always best to hold the IRS tax audit at the location of your tax professional who is handling your IRS tax audit.
I never recommend the IRS going to your home or place of business. You should follow the advice of the tax professional you hire to handle your IRS income or business tax audit.
 
Can the audit be transferred to another IRS office?
You can request a transfer of an audit if you have moved. Several factors will be considered such as your current location, the location of the business and where the books and records are maintained.
If the audit is by correspondence, you can request a face-to-face audit because the books and records may be too voluminous to mail.
IRS has the right to refuse to transfer the tax audit if it feels that the taxpayer or the tax professional is trying to stall the tax audit.
 
How long should the records related to a business or other long-term asset be kept?
 
In the case of an asset, records related to the asset should generally be kept for as long as you have the asset plus three years.
If the asset was exchanged, the basis for the new asset may include the exchanged asset so the records for both assets will need to be retained until the new asset is disposed plus three years from the file date of the tax return for the year of disposition.
 
How long should payroll tax records be kept?
 
Generally, payroll tax records should be kept for six years with a review of the file to see if any items relating to current employees should be retained with current records.
 
 
How far Back can the IRS go Back on a IRS Tax Audit
 
As a general rule, the IRS can include returns filed within the last three years in an audit. Additional years can be added if a substantial error is identified.
Generally, if a substantial error is identified, the IRS will not go back more than the last six years.
The IRS tries to audit tax returns as soon as possible after they are filed. Accordingly most audits will be of returns filed within the last two years. IRS is making every effort to audit returns much quicker.  The IRS is attempting to put IRS audit triggers in place to capture tax cheats in real time.
 
Statute of Limitations on IRS Income and business tax audits

 
If an audit is for an older year, you may be requested to extend the statute of limitations for assessment of your tax return.
The statute of limitations limits the time allowed to assess additional tax.
The statute of limitations is generally three years after a return is due or was filed, whichever is later. There is also a statute of limitations for making refunds.
If the audit is not resolved and the statute of limitations date is nearing, you may be asked to extend the statute of limitations date.
This will allow you additional time to provide further documentation to support your position, request an appeal if you do not agree with the audit results, or to claim a tax refund or credit. It also allows the IRS time to complete the audit and provides time to process the audit results.
You do not have to agree to extend the statute of limitations date. However, if you do not agree, the examiner will be forced to make a determination based upon the information they currently have.
Therefore, the examiner may not be able to consider additional adjustments, such as expenses, that could lower the amount of tax due.
 
IRS Facts for Tax Audits of Income and Business Audits

 
The IRS audits about 1 percent of the individual tax returns.
143.4 million – Individual federal tax returns filed in 2011.
1.4 million –  Individual tax returns examined by the IRS, resulting in notices being mailed or in-person audits.
90 percent –  Tax returns audited in person resulting in a recommended change in taxes.
85 percent –  Tax returns audited via mail resulting in a recommended change.
$15.1 billion –  Amount of recommended additional taxes from the audits.
$16,851 –  Average recommended additional taxes per in-person audit.
$8,241 –  Average recommended additional taxes per mail audit.
This Source material is from the 2012 Internal Revenue Service Data Book. The public has a right to look at any information regarding IRS  statistics. Simply go online to IRS.gov and you will find  a wealth of information.
Contact us today for free initial consultation if you are going a IRS income or business tax audit.
You can speak directly to former IRS agents and instructors who know the exact systems and protocols of an IRS tax audit.
We are the affordable tax firm.
 
Former IRS Agents, Managers for IRS Individual, Business Tax Audits – Ft.Lauderdale, Miami, Palm Beaches, Boca – South Florida