Florida Sales Tax Audit Defense + Owe Sales Tax Debt, Specialists + Former Agents + 33309, 33319, 33320, 33321, 33351, 33359 + Tamarac

 

Fresh Start Tax

 

An AFFORDABLE  Professional and Experienced Firm, A plus Rated BBB.Since 1982, South Florida Firm.

 

We have over 206 years of professional tax experience in over 65 years of combined work experience in government agencies.

Call us today for free to initial tax consultation and we will explain to you the Florida sales tax audit procedures and defenses.

 

Fresh Start Tax LLC has its main office in Ft. Lauderdale, Florida and the firms staff consists of CPA’S, former IRS agents and former instructors who have worked hand in hand with the Florida’s Sales Tax and the Department of Revenue.

Fresh Start Tax and it’s principles have handled thousands and thousands of cases over the years, both in government service and in their professional practice.

We handle cases all through the State of Florida.

Our professionals are members of various National Organizations, have been keynote speakers on tax issues and are certified by the Florida Department of Professional Regulation to administer and teach other professionals in their continuing educational programs. We are the professionals professional.

With your free initial consultation we will review your case and give you very specific expectations based on your circumstances.

 

State of Florida sales tax representation includes the following matters with the Florida Department of Revenue:

• Tax audits on any and all sales tax issues and matters,
• Non-filing matters,
• Criminal investigations that are referred to attorneys that best fit your profile,
• Department of Revenue enforcement action or warrant proceedings
• Stipulated time payments,
• Requests for settlements or Compromise

The Keys to resolving your Florida Sales Tax Problem

There are several keys to make sure your case is resolved timely. These keys are necessary on every case. The Department of Revenue is interested in resolving the cases in their system. The DOR goal is to close cases and get them out of their inventory.

Here are the keys necessary to stop enforcement action on your back taxes.

• Have all your tax returns filed before you call Florida Sales Tax and the Department of Revenue on your back tax issues.

• Be prepared to give the Department of Revenue a financial statement whether you are a hardship candidate, want an installment agreement or want to settle your case.

• Be prepared to give the Department of Revenue all supporting documentation to prove your financial statement.

• Make sure you are current on deposit requirements.

Are you being Audited by Florida DOR, Read Carefully

 

The State of Florida, Department of Revenue audit taxpayers to:

• Enforce Florida tax laws uniformly.
• Deter tax evasion.
• Promote voluntary compliance.
• Educate taxpayers.

 

As a general rule, the State of Florida Sales Division accepts most tax returns as filed, however they audit some returns to verify accuracy and evaluate compliance.
Florida Sales Tax Audits do not always result in the taxpayer owing additional tax, penalty or interest.

The auditor may adjust a credit carryover or correct distribution without assessing additional tax. The auditor may even determine that a refund is due.

How Are Taxpayers Selected for Audit by the Florida Sales Tax Division

The methods for selecting a business or individual to audit vary from tax to tax.

Here are some examples of sources we use to identify a potential audit candidate:

• Internal Revenue Service information.
• Information sharing programs with other states and state agencies.
• Computer-based random selection.
• Analysis of Florida tax return information.
• Business publications, periodicals, journals, and directories.

What Types of Records Will I Need to Provide to an Auditor or Inspector?

When we notify you of our intent to audit, we will also tell you what records you will need to provide.

The types of records may include, but are not limited to:

1. General ledgers and journals

2. Cash receipt and disbursement journals

3. Purchase and sales journals

4. Sales tax exemption or resale certificates

5. Florida tax returns

6. Federal tax returns

7. Depreciation schedules

8. Property records

9. Other documentation to verify amounts entered on tax returns

You must keep your records for three years since an audit can extend back that far.

The Department may audit for periods longer than three years if you did not file, or filed a substantially incorrect return or payment.

Your Rights During an Sales Tax Audit

The Florida Taxpayer’s Bill of Rights provides protection for taxpayers’ privacy and assets during their interactions with Revenue employees.

Your rights include:

• The right to fair treatment.

• The right to get available information and prompt, accurate responses to your questions.

• The right to have the Department begin and complete its audit in a timely manner after we notify you of our intent to audit.

• The right to get simple, nontechnical statements which explain the reason for audit selection and the procedures, remedies, and rights available during audit, appeals, and collection proceedings.

Florida Sales Tax Audit Defense + Owe Sales Tax Debt, Specialists + Former Agents + 33309, 33319, 33320, 33321, 33351, 33359 + Tamarac

 

Florida Sales Tax Audit Defense + Owe Sales Tax Debt, Specialists + Former Agents + 33309, 33319, 33320, 33321, 33351, 33359 + Tamarac

 

Fresh Start Tax

 

An AFFORDABLE  Professional and Experienced Firm, A plus Rated BBB.Since 1982, South Florida Firm.

 

We have over 206 years of professional tax experience in over 65 years of combined work experience in government agencies.

Call us today for free to initial tax consultation and we will explain to you the Florida sales tax audit procedures and defenses.

 

Fresh Start Tax LLC has its main office in Ft. Lauderdale, Florida and the firms staff consists of CPA’S, former IRS agents and former instructors who have worked hand in hand with the Florida’s Sales Tax and the Department of Revenue.

Fresh Start Tax and it’s principles have handled thousands and thousands of cases over the years, both in government service and in their professional practice.

We handle cases all through the State of Florida.

Our professionals are members of various National Organizations, have been keynote speakers on tax issues and are certified by the Florida Department of Professional Regulation to administer and teach other professionals in their continuing educational programs. We are the professionals professional.

With your free initial consultation we will review your case and give you very specific expectations based on your circumstances.

 

State of Florida sales tax representation includes the following matters with the Florida Department of Revenue:

• Tax audits on any and all sales tax issues and matters,
• Non-filing matters,
• Criminal investigations that are referred to attorneys that best fit your profile,
• Department of Revenue enforcement action or warrant proceedings
• Stipulated time payments,
• Requests for settlements or Compromise

The Keys to resolving your Florida Sales Tax Problem

There are several keys to make sure your case is resolved timely. These keys are necessary on every case. The Department of Revenue is interested in resolving the cases in their system. The DOR goal is to close cases and get them out of their inventory.

Here are the keys necessary to stop enforcement action on your back taxes.

• Have all your tax returns filed before you call Florida Sales Tax and the Department of Revenue on your back tax issues.

• Be prepared to give the Department of Revenue a financial statement whether you are a hardship candidate, want an installment agreement or want to settle your case.

• Be prepared to give the Department of Revenue all supporting documentation to prove your financial statement.

• Make sure you are current on deposit requirements.

Are you being Audited by Florida DOR, Read Carefully

 

The State of Florida, Department of Revenue audit taxpayers to:

• Enforce Florida tax laws uniformly.
• Deter tax evasion.
• Promote voluntary compliance.
• Educate taxpayers.

 

As a general rule, the State of Florida Sales Division accepts most tax returns as filed, however they audit some returns to verify accuracy and evaluate compliance.
Florida Sales Tax Audits do not always result in the taxpayer owing additional tax, penalty or interest.

The auditor may adjust a credit carryover or correct distribution without assessing additional tax. The auditor may even determine that a refund is due.

How Are Taxpayers Selected for Audit by the Florida Sales Tax Division

The methods for selecting a business or individual to audit vary from tax to tax.

Here are some examples of sources we use to identify a potential audit candidate:

• Internal Revenue Service information.
• Information sharing programs with other states and state agencies.
• Computer-based random selection.
• Analysis of Florida tax return information.
• Business publications, periodicals, journals, and directories.

What Types of Records Will I Need to Provide to an Auditor or Inspector?

When we notify you of our intent to audit, we will also tell you what records you will need to provide.

The types of records may include, but are not limited to:

1. General ledgers and journals

2. Cash receipt and disbursement journals

3. Purchase and sales journals

4. Sales tax exemption or resale certificates

5. Florida tax returns

6. Federal tax returns

7. Depreciation schedules

8. Property records

9. Other documentation to verify amounts entered on tax returns

You must keep your records for three years since an audit can extend back that far.

The Department may audit for periods longer than three years if you did not file, or filed a substantially incorrect return or payment.

Your Rights During an Sales Tax Audit

The Florida Taxpayer’s Bill of Rights provides protection for taxpayers’ privacy and assets during their interactions with Revenue employees.

Your rights include:

• The right to fair treatment.

• The right to get available information and prompt, accurate responses to your questions.

• The right to have the Department begin and complete its audit in a timely manner after we notify you of our intent to audit.

• The right to get simple, nontechnical statements which explain the reason for audit selection and the procedures, remedies, and rights available during audit, appeals, and collection proceedings.

Florida Sales Tax Audit Defense + Owe Sales Tax Debt, Specialists + Former Agents + 33309, 33319, 33320, 33321, 33351, 33359 + Tamarac

 

STOP IRS Tax Bank Levy, Wage Garnishment NOW + Settle IRS Tax Debt + 33309, 33319, 33320, 33321, 33351, 33359 + Tamarac

Fresh Start Tax

 

Affordable Former IRS Agents + Stop a IRS Tax Levy, Wage Garnishment  NOW +  Since 1982 + 954-492-0088

 

We are former IRS agents and managers who know the system can stop an IRS bank levy, wage garnishment levy, or any tax levy you may have received.

We could not only stop your IRS bank levy or wage garnishment we can settle and close your case off the IRS enforcement computer at the same time.

We have worked out of the local South Florida IRS and Miami offices and know the system inside and out. We have a very streamlined quick and affordable process to resolve any bank levy or wage garnishment issue.

As former IRS agents we used to send out bank levies and wage garnishment so it only makes sense that we know the processes and systems to release them. IRS has a very systematic way to work all seizure cases.

We have over 65 years of former IRS work experience in the local, district, and regional tax offices of the Internal Revenue Service. As former IRS agents and managers we were teaching instructors and work to supervisors throughout the region.

You can call us today for initial tax consultation and we can walk you through the process within 10 minutes.

 

How to Stop a IRS Bank Tax Levy, IRS Wage Garnishment Levy NOW

 

It is important to know where your cases in the system to begin the stop the IRS tax levy.

Some taxpayers were sent a IRS letter 11 indicating that a tax levy was the next step, while others have been sent a IRS tax levy from the ACS unit out of various IRS offices, while others have been sent tax levies by revenue officers in the local offices.

If you have received IRS letter 11 there is a collection due process hearing that can stop the IRS levy.

If your case is in the ACS unit or the local office we can simply send over a power of attorney and start negotiation power to go ahead to get an immediate levy release and settle your IRS case at the same time.

 

It is important to know the difference between IRS bank levy and wage garnishment levy.

A IRS bank garnishment levy puts a freeze on your bank account for 21 days on the day the bank received the levy.

You can use the account is much as you want during that period of the levy. Only the monies that were in the bank the day of the levy are frozen by the institution.

A wage garnishment levy is an immediate garnishment whereas approximately 80% of your wages will be sent to the Internal Revenue Service until the levy garnishment is released.

Also IRS has IRS has a right to file a federal tax lien against any and all assets you may have. Those federal tax liens are filed in the courthouse were you claim your residence

 

Final Notices before IRS Tax Levy or Garnishment: IRS Levies

Where does Internal Revenue Service (IRS) authority to levy originate?

The Internal Revenue Code (IRC) authorizes levies to collect delinquent tax.

See IRC 6331. Any property or right to property that belongs to the taxpayer or on which there is a Federal tax lien can be levied, unless the IRC exempts the property from levy.

What actions must the Internal Revenue Service take before a levy can be issued?

 

The IRS will usually levy only after these three requirements are met:

1. The IRS assessed the tax and sent you a Notice and Demand for Payment (a tax bill);
2. You neglected or refused to pay the tax; and
3. The IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy.

The IRS may give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested.

Please note: if the IRS levies your state tax refund, you may receive a Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.

 

IRS Billing Notices for IRS Tax Levies & IRS Wage Garnishments

 

The IRS will send out final notices before levies and seizures after they generally send out a series of five billing notices.

On the fourth notice, taxpayers will receive their final notice in which they can go ahead and file with the appeals division of Internal Revenue Service to stop the levy.

Not only can we go ahead and stop the IRS notice of intent to levy, we can settle your case at the same time.

All your tax returns are going to have to be filed and if that is an issue for you, with or without tax records we can prepare your tax returns.

How IRS Settles Your Case

As a general rule, the Internal Revenue Service will take your current financial statement and after they reviewed your documented financial statement there is generally two ways IRS closes cases.

They generally closes your back taxes case by taxpayers putting you into a:

1.currently not collectible statuses or,

2. ask for a monthly payment agreement.

For taxpayers who owe back taxes  statistics show that 40% of all taxpayers are placed in currently not collectible status, while 6.5 million taxpayers enter monthly payment or installment agreement.

Some taxpayers can be eligible for the offer in compromise program to settle their debt for pennies on the dollar.

When we review every case we find out if you are offer in compromise candidate to make this happen.

Last year IRS accepted 38,000 taxpayers to settle their debt to the offer in compromise program for an average of $6500 per settlement.

Keep in mind your current documented financial statement will determine the settlement on your particular case if you are a suitable candidate for the offer in compromise.

All taxpayers before wanting to file an offer in compromise should walk through the IRS  pre-qualifier tool.

We will carefully review your current financial statement and make sure you get the best possible settlement with Internal Revenue Service.

We are a full service tax firm specializing in IRS collection and audit matters. since 1982,

Call us today for a free initial tax consultation in here the truth about your case in the different ways you can settle your tax debt.

 

STOP IRS Tax Bank Levy, Wage Garnishment NOW + Settle IRS Tax Debt + 33309, 33319, 33320, 33321, 33351, 33359 + Tamarac


STOP IRS Tax Bank Levy, Wage Garnishment NOW + Settle IRS Tax Debt + 33309, 33319, 33320, 33321, 33351, 33359 + Tamarac

Fresh Start Tax

 

Affordable Former IRS Agents + Stop a IRS Tax Levy, Wage Garnishment  NOW +  Since 1982 + 954-492-0088

 

We are former IRS agents and managers who know the system can stop an IRS bank levy, wage garnishment levy, or any tax levy you may have received.

We could not only stop your IRS bank levy or wage garnishment we can settle and close your case off the IRS enforcement computer at the same time.

We have worked out of the local South Florida IRS and Miami offices and know the system inside and out. We have a very streamlined quick and affordable process to resolve any bank levy or wage garnishment issue.

As former IRS agents we used to send out bank levies and wage garnishment so it only makes sense that we know the processes and systems to release them. IRS has a very systematic way to work all seizure cases.

We have over 65 years of former IRS work experience in the local, district, and regional tax offices of the Internal Revenue Service. As former IRS agents and managers we were teaching instructors and work to supervisors throughout the region.

You can call us today for initial tax consultation and we can walk you through the process within 10 minutes.

 

How to Stop a IRS Bank Tax Levy, IRS Wage Garnishment Levy NOW

 

It is important to know where your cases in the system to begin the stop the IRS tax levy.

Some taxpayers were sent a IRS letter 11 indicating that a tax levy was the next step, while others have been sent a IRS tax levy from the ACS unit out of various IRS offices, while others have been sent tax levies by revenue officers in the local offices.

If you have received IRS letter 11 there is a collection due process hearing that can stop the IRS levy.

If your case is in the ACS unit or the local office we can simply send over a power of attorney and start negotiation power to go ahead to get an immediate levy release and settle your IRS case at the same time.

 

It is important to know the difference between IRS bank levy and wage garnishment levy.

A IRS bank garnishment levy puts a freeze on your bank account for 21 days on the day the bank received the levy.

You can use the account is much as you want during that period of the levy. Only the monies that were in the bank the day of the levy are frozen by the institution.

A wage garnishment levy is an immediate garnishment whereas approximately 80% of your wages will be sent to the Internal Revenue Service until the levy garnishment is released.

Also IRS has IRS has a right to file a federal tax lien against any and all assets you may have. Those federal tax liens are filed in the courthouse were you claim your residence

 

Final Notices before IRS Tax Levy or Garnishment: IRS Levies

Where does Internal Revenue Service (IRS) authority to levy originate?

The Internal Revenue Code (IRC) authorizes levies to collect delinquent tax.

See IRC 6331. Any property or right to property that belongs to the taxpayer or on which there is a Federal tax lien can be levied, unless the IRC exempts the property from levy.

What actions must the Internal Revenue Service take before a levy can be issued?

 

The IRS will usually levy only after these three requirements are met:

1. The IRS assessed the tax and sent you a Notice and Demand for Payment (a tax bill);
2. You neglected or refused to pay the tax; and
3. The IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy.

The IRS may give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested.

Please note: if the IRS levies your state tax refund, you may receive a Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.

 

IRS Billing Notices for IRS Tax Levies & IRS Wage Garnishments

 

The IRS will send out final notices before levies and seizures after they generally send out a series of five billing notices.

On the fourth notice, taxpayers will receive their final notice in which they can go ahead and file with the appeals division of Internal Revenue Service to stop the levy.

Not only can we go ahead and stop the IRS notice of intent to levy, we can settle your case at the same time.

All your tax returns are going to have to be filed and if that is an issue for you, with or without tax records we can prepare your tax returns.

How IRS Settles Your Case

As a general rule, the Internal Revenue Service will take your current financial statement and after they reviewed your documented financial statement there is generally two ways IRS closes cases.

They generally closes your back taxes case by taxpayers putting you into a:

1.currently not collectible statuses or,

2. ask for a monthly payment agreement.

For taxpayers who owe back taxes  statistics show that 40% of all taxpayers are placed in currently not collectible status, while 6.5 million taxpayers enter monthly payment or installment agreement.

Some taxpayers can be eligible for the offer in compromise program to settle their debt for pennies on the dollar.

When we review every case we find out if you are offer in compromise candidate to make this happen.

Last year IRS accepted 38,000 taxpayers to settle their debt to the offer in compromise program for an average of $6500 per settlement.

Keep in mind your current documented financial statement will determine the settlement on your particular case if you are a suitable candidate for the offer in compromise.

All taxpayers before wanting to file an offer in compromise should walk through the IRS  pre-qualifier tool.

We will carefully review your current financial statement and make sure you get the best possible settlement with Internal Revenue Service.

We are a full service tax firm specializing in IRS collection and audit matters. since 1982,

Call us today for a free initial tax consultation in here the truth about your case in the different ways you can settle your tax debt.

 

STOP IRS Tax Bank Levy, Wage Garnishment NOW + Settle IRS Tax Debt + 33309, 33319, 33320, 33321, 33351, 33359 + Tamarac


IRS Taxes + Back Tax Debt + Federal, Individual, Business, Payroll Taxes + Unfiled Tax Returns + 33309, 33319, 33320, 33321, 33351, 33359 + Tamarac

 

Fresh Start Tax

We know the System, let our knowledge work for you! ” We are the AFFORDABLE professional tax firm.”

 

We had over 60 years with the IRS in the local, district and regional tax office of South Florida IRS.

We are A+ rated by the Better Business Bureau and have been in private practice since 1982. We have over 206 years of professional tax experience.

 

In dealing with the IRS on back taxes it is important to know for any individual, business or payroll tax case that you be current in the tax year you are in. IRS will insist on current year compliance

That is, IRS will want you current in your withholding, estimate or current payroll tax deposits.

The Internal Revenue Service may refuse to work with all clients who cannot keep up with current payment requirements. This is a must

FST will lay out a complete working system for you to cooperate with Internal Revenue Service to ensure that you will get to deal you are looking for with the IRS, one that you can live with.

Your current financial statement will determine how the Internal Revenue Service will close your case Most taxpayers who think IRS will just work out any deal with them find themselves caught in a dilemma once IRS starts reviewing your financial statement. IRS applies national standards that are shocking to most taxpayers. Taxpayers who owe back taxes have to be prepared for dealing with the IRS and the standards they impose upon taxpayers.

This is applicable for all individual, business and corporate clients. IRS evaluates all clients based on their current financial statements.

If you are dealing with the ACS unit you will need to use financial statement number 433F if you are dealing in the local office you will need financial statement form 433 a, both can be found on our website.

That financial statement will need to be completely verified and documented to support the numbers on it. IRS will want to verify your financial statement via bank statements, copy of monthly expenses and a copy of pay stubs to verify income.

You must be very accurate and honest with your financial statement. Make sure your financial statement is completely documented.

After IRS review your current financial statement there are generally two categories of case closings that occur. IRS will either put you into currently not collectible status or to make a monthly payment agreement. A good tax company can walk you through the process and give you the pros and cons of both.

When you call our office and know that all work is done in-house by a truly seasoned and professional tax staff.

We are the fast, friendly professional tax firm when it comes to dealing with those who all back IRS taxes and are seeking IRS tax debt relief, we can handle all federal and state tax cases.

Call us today for a free initial tax consultation.

 

 

Owe Back IRS + Tax Debt + Federal, Individual, Business, Payroll Taxes + Unfiled Tax Returns + 33309, 33319, 33320, 33321, 33351, 33359 + Tamarac

IRS Tax Audit Defense Representation + Former IRS + IRS Appeals Experts & Settlements + 33309, 33319, 33320, 33321, 33351, 33359 + Tamarac

Fresh Start Tax

 

We are an affordable local South Florida team of IRS tax experts, former IRS agents and managers, since 1982. A + Rated

 

We have 205 years of direct tax experience, 65 years of working for the local IRS in the local, district and regional offices.

Since 1982, we have been representing people in the South Florida, Fort Lauderdale and Miami area.We know IRS inside and out and understand all their systems, settlement theories and protocols.

We worked as Agents, Instructors and in Management. We were also on-the-job instructors for new IRS agents.

At Fresh Start Tax LLC you will be represented by a CPA or former IRS agent who knows the system and can provide your very best tax audit defense. If we cannot settle your case at the local office will take your case to the Appellate Division or settlements and the best deals are usually made.

It only makes sense to have Former IRS Agents and IRS Tax Audit Managers handle your IRS tax audit and give you the most experienced and successful expert IRS Tax Audit Help.

We can also tell you how to help audit proof your return in the future. IRS audits are very predictable and after reviewing thousands of tax returns over the years we can tell you which cases are going to be subject for IRS tax audits.

 

Facts about IRS Tax Audits:

 

• The IRS audits a total of 1,391,581 tax returns a year.

• The IRS field agents complete more than 310,000 audits by office or business visits a year,

• The IRS completes over 1,081,152 correspondence audits a year. IRS collects a little over $5 million a year from his correspondence audits,

• IRS has installed new software tracking systems with the development of the CADE 2 computer to spot and recognize tax audits more proficiently,

• IRS employs over 13,000 IRS auditors.

• $5.2 billion dollars are collected through the IRS document matching program.

• For truly professional IRS Tax Audit help contact former IRS Agents and Managers.

 

The IRS Tax Audit Examination Plan, What you Need to Know about the IRS

 

The IRS audit plan that is used by the IRS is based on long-range coverage planning, and objectives on the resources requested in the Congressional Budget.

From this, there is an established plan where staff years are allocated to all area IRS offices using resource allocation and a prescribed methodology.

Each Area Manager of the IRS is responsible for preparing an area response following instructions from the National Headquarters.

Why the IRS Audits Tax Returns

Although there are a variety of reasons listed below some are the most common.

a. Front Loaded Programs

Front Loaded programs are those tax audits that IRS DC headquarters has determined are very important and a considerable amount of time must be spent on these programs and activities. Each area has discussions within management as to what the programs should be for each region, district, and office.
Some of the programs are:

• Special enforcement programs – An example of this may be compliance of all flee market vendors, a program I was involved with

• High Income non-filers – The IRS would get their information from a match program of w-2’s and 1099’s and match up social security numbers against filed returns

• Abusive Tax Avoidance – This could be in the area of offshore activities

• Offshore credit card program

• National Research programs – Those set forth by management after doing a trends project

• FBAR filing – IRS is currently targeting those with overseas bank accounts

• Non- filers – IRS is presently forming a task force to seek non-filers though aggressive means.

b. The IRS makes sure there is balanced coverage.

The National Office makes sure there is a balanced approach for audit return delivery and tax compliance. Resources and inventory and the size of personnel all go into this formula.

 

IRS  focuses are blended into these areas:

 

1. Individual returns less than $100,000.

2. Individual returns greater than $100,000 but less than $200,000.

3. Individual returns greater than $ 200,000.

4. Small Business Corporations.

5. Small Business Flow-Through Entities – S Corporations, Fiduciaries and Partnerships.

c. Classification Plan

The IRS will prepare a plan, which is classified. A National DIF score indicator is placed on all Federal Income tax returns that are filed.

Each tax return has certain factors that contribute to its score such as Gross Income, Adjusted Gross Income and line item expense.

 

There are several classified secrets that go into the DIF score.

 

Each tax return is processed through the IRS computer line item by line item.
A DIF score label is placed on every tax return with its DIF number.

A tax examiner or Revenue Agent manually eyeballs each and every tax return with a high DIF score.

The examiner then determine which return has the highest probability of tax audit success.

d. DIF Cutoff Score, this is the most common reason for audit. each and every tax return has a DIF  score,  this stands for discriminatory index function.

The IRS will calculate the Area DIF cutoff score for each activity code, giving consideration to the selection rate.

This is the lowest DIF score necessary to secure the number of returns required for audit. For example, if the return plan shows 225 returns for an activity code and the selection rate is 70%, the IRS will need to order 321 returns (225/70%).

The DIF Cut off Score is 500. The number of returns with DIF scores greater than 550 is 280, which is less than the number of returns required, so the lowest DIF score on an ordered return will be in the range of 500 to 550 and the DIF cutoff score is 500.

All tax returns are graded  by the Internal Revenue Service. That’s right, each and every tax return has a DIF score.  There is a label placed on the back of every tax return that grades audit potential.

 

Much of the audit numbers are predicated on the budget that Congress gives to the IRS.

Over the last couple years the number of audits are going down by small percentages simply because they do not have working staff to handle all the IRS audits that are truly needed. It is not wise to play the audit lottery.

Call us today for a free initial tax consultation and we will review your tax returns, go over best case scenarios and talk about your IRS tax defense for an IRS audit.

We are a full service tax firm. Since 1982,  we have been serving South Florida.

 

IRS Tax Audit Defense Representation + Former IRS + IRS Appeals Experts & Settlements + 33309, 33319, 33320, 33321, 33351, 33359 + Tamarac