IRS – Audit Defense – IRS Audit Representation – Tax Return Audits – 954-492-0088
We are the Affordable Professional Tax firm that gets results! Hire Former IRS Agents
We are a local South Florida tax firm that has been representing taxpayers in South Florida since 1982for all IRS tax matters and IRS Audit defense.
On staff are Former IRS Auditors, Audit Managers and Audit Instructors with a combined 60 years IRS work experience in the local South Florida IRS offices.
We have worked as IRS auditors, IRS revenue agents, IRS appellate agents and IRS audit or instructors all in the South Florida IRS offices.
We taught Tax Law at the IRS. We know the IRS systems to give you strong IRS tax representation.
If you are going through an IRS tax audit there is no better tax representation than you can get the people who actually know the systems, the protocols in the settlement formulas.
We have worked hundreds upon hundreds of IRS tax audit cases including IRS audit defense, IRS audits of individual , business and corporate tax returns
We are A+ rated by the Better Business Bureau.
We are a team of tax attorneys, certified public accountants, and former IRS agents and
managers who worked right here out of the local South Florida IRS offices.
We have a cumulative 206 years of professional tax experience and over 60 years of working right here in the South Florida IRS offices.
Taxpayers Right for IRS Tax audits
Most taxpayers do not know that they have tax rights during an IRS tax audit and to go in up unrepresented is foolish.
Keep in mind that an IRS agent has the right to expand the tax audit beyond the scope of the initial paperwork sent to the taxpayer and many times tax professionals can keep the IRS from going much deeper into a taxpayer or companies tax return.
The agent has the right to go three years back an additional time if they feel there are large omissions of income.
Taxpayer should have the best IRS audit defense and audit representation possible.
Whether it is an individual business or corporate tax return former IRS agents know the system.
Facts of Internal Revenue Service Tax Audits
- The Internal Revenue Service audits 1.03% of all tax returns filed. That’s it, just over 1%
I would not recommend you play the IRS lottery game because of your tax return false out of the national standards you have an excellent chance of being audited by the Internal Revenue Service.
- Nationwide, the IRS audits 1.5 million tax returns per year, that includes both field audits and IRS mail correspondence audits.
- 359,000 are actually audited by local IRS agents and rest are by mail or correspondence tax audits.
- IRS collects $10.2 billion a year as a result of IRS audits by field agents and $5.2 billion a year by document matching programs.
- IRS collects over$5 billion from the matching program alone.
Most Frequently asked Question – How far back can the IRS go to audit my return?
The IRS can include returns filed within the last three years in an audit.
Additional tax years can be added if a substantial error is identified.
If a substantial error is identified, the IRS will not go back more than the last six years. Fraud however has no statute .
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.
Statute of Limitations on IRS 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.
Refund Statutes – 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.
The IRS Tax Audit Selection Process, yes there is a strategy.
Selecting a return for audit does not always suggest that an error has been made.
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.
Sometimes tax returns are audited because spouses and ex-employees report findings to the Internal Revenue Service.
Your Rights During an IRS Tax Audit
These taxpayer rights include:
1. You have a right to professional and courteous treatment by IRS employees.
2. You have a right to privacy and confidentiality about tax matters.
3. You have 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.
4. You have a right to representation, by oneself or an authorized representative.
5. You have a right to appeal disagreements, both within the IRS and before the courts.
IRS Tax Audit Length, all depends
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 if you are scheduled for office audit those can last from week to three weeks.
Sometimes if an IRS revenue agent is auditing your tax return it can take anywhere from a month to a year.
Records Needed
You will be provided with a written request for specific documents needed.
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 Audit Determinations
An audit can be concluded in three ways:
1.No change:
An audit in which you have substantiated all of the items being reviewed and results in no changes. Great news here.
2. Agreed:
An audit where the IRS proposed changes and the taxpayer understands and agrees with the changes.
3. Disagreed:
An audit where the IRS has proposed changes and the taxpayer understands, but disagrees with the changes.
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.
Your Appeal Rights
The IRS has an administrative appeals process that works with taxpayers to try to settle tax disputes in an effort to avoid formal court hearings.
The role of Appeals is to make an independent review of a tax dispute and to consider the positions taken by both the taxpayer and the Service. The Appeals unit strives to resolve tax disputes in a fair way and remain impartial to both parties.
The IRS will send you a report and/or letter that will explain the proposed adjustments or proposed or taken collection action.
The letter also tells you of your right to request a conference with an Appeals or Settlement Officer, as well as how to make your request for a conference. In addition to examination adjustments, many other things can be appealed such as penalties, interest, trust fund recovery penalties, offers in compromise, liens, and levies.
If you request an Appeals conference, be prepared with records and documentation to support your position.
Appeals conferences are informal meetings. You may represent yourself or have an attorney, accountant, or an individual enrolled to practice before the IRS, represent you.
If you do not reach agreement with the Appeals or Settlement Officer, or you do not wish to appeal within the IRS, you may appeal certain actions through the courts.
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