IRS, State Tax Audit Representation – Audit Tax Experts, since 1982W

We are a professional tax firm that specializes in IRS and State of Florida Sales Tax audits

We are a Florida Tax Firm.

We are the affordable tax experts that have been practicing in the state of Florida since 1982.

We are A+ rated by the Better Business Bureau.

On staff are tax attorneys, CPAs, and former IRS and state tax auditors.

There are many excellent professional tax firms that can represent you for IRS or state tax audit, make sure you check on the credentials of the tax professionals.

You can call us today for a free initial tax consultation and we can evaluate the state of your case.

Know Your Taxpayer Rights

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

Your Federal the State rights include:

• A right to professional and courteous treatment by IRS/State employees.

• A right to privacy and confidentiality about tax matters.

• A right to know why the IRS is asking for information, how the IRS
• State 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/State and before the courts.For more information on the appellate process you can speak to us individually and we will walk you to the process.

How Your Tax Return May Have Been Selected for Examination ( this is not an All inclusive list.)

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.

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.

Keep in mind right now the Internal Revenue Service is monitoring all offshore banking and those with investments overseas.

On staff is a tax attorney that specializes in overseas banking transactions and its aspect on tax and FBAR.

Computer Scoring.# one reasons for tax audits

Some returns are selected for examination on the basis of computer scoring.  Computer programs give each return numeric “scores”.

1. The Discriminant Function System  score rates the potential for change, based on past IRS experience with similar returns.

2. The Unreported Income DIF (UIDIF) score rates the return for the potential of unreported income.

IRS tax auditors will screen the highest-scoring returns, selecting some for audit and identifying the items on these returns that are most likely to need review.

Information Matching.Commonly  W-2’s, 1099’s.

Some  tax 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. the IRS audits 1.4 million taxpayers using this matching program.

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.

Other Targets Tax 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. many times these are local programs looking at local segment markets.

A good example of this would be cities located within a resort area. The IRS or the state may audit hotels restaurants in other sundry locations involving the resort markets.

IRS /State Audit Examination Methods

An examination may be conducted by mail or through an in-person interview and review of the taxpayer’s records.

The agent 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.

IRS, State Tax Audit – Affordable Representation Help – Attorneys, Former IRS – Kissimmee, Haines City, Deland, Ocala