IRS Mail Tax Audits – Get IRS Audit Help from Former IRS Agents
If you have received a IRS mail tax correspondence audit contact us today to help manage the IRS tax audit.
The IRS relies heavily on the correspondence tax audit process to address individuals suspected of under reporting their income tax liabilities.
Correspondence audits result in significant additional tax assessments and are more economical than other types of audits.
IRS statistics show that in Fiscal Year 2012, the IRS conducted 1.1 million correspondence audits and recommended approximately $9.2 billion in additional taxes.
With this much money on the table it will behoove virus to continue to ramp up more mail tax correspondence audits.
The treasury Inspector General conducted an audit of this tax correspondence system and found out that the IRS is leaving a lot of money on the table. As a result you can expect IRS to start ramping up their IRS mail tax audit process.
If you are undergoing an IRS audit of any type contact us today and have former IRS agents, managers, and tax instructors represent you for IRS mail tax audit.
Why IRS is going to Audit more back years.
This audit was initiated to determine the effectiveness of filing checks made during the correspondence audit process in the Small Business/Self-Employed Division.
Filing checks are used, in part, to determine whether the same pattern of noncompliance identified on an audited tax return is present on the prior and/or subsequent year tax returns, and if those tax returns warrant an audit.
When properly completed, filing checks leverage IRS audit resources by increasing the overall compliance coverage of every audit.
WHAT TIGTA FOUND
TIGTA evaluated a statistical sample of 102 of 7,470 single-year correspondence audits in which the taxpayers involved agreed that they understated their tax liabilities by at least $4,000.
Similar tax issues also existed on the prior and/or subsequent year tax returns for 43 of the 102 taxpayers. TIGTA found that 32 of the 43 individuals did not have those tax returns audited and, as a consequence, may have avoided additional assessments ranging from $2,343 to $18,874.
A factor that contributed to the limited number of prior and/or subsequent year tax audits in our sample is the emphasis the IRS places on keeping its audit inventories free of older tax years so there is sufficient time to complete audits and assess any resulting taxes within the three-year assessment statute of limitations.
Control issues also exist over how current year audit results are used in deciding whether to audit the prior and/or subsequent year returns.
Contact us today to hear the truth about your case.
