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On staff are former IRS audit managers, revenue agents, office auditors and tax instructors with over 60 years of direct working knowledge of the Internal Revenue Service audit procedures and practices.
We are a specialty firm that has been practicing since 1982 and we are A+ rated by the Better Business Bureau.
We are available for a no-cost consultation or evaluation for any IRS matter or problem you are facing.
IRS tax audits, why you may have been targeted.
The Internal Revenue Service audits taxpayers, businesses, corporations and partnerships for a variety of reasons.
Listed below are some of the reasons that your tax return may have been pulled for IRS audit. They are in no order they are just certain categories that may attract the attention of the Internal Revenue Service.
1. High incomes. Chances of a tax audit may go up to 10%
Your chance of being audited substantially increases once your income crosses $250,000, according to a recent IRS report on its enforcement activity.
2. Very Large itemized deductions.
You should deduct every nickel you’re entitled to but you must realize that if your itemized tax deductions are bigger than the IRS target range for people at your income level, your return may get a second look. Those target ranges are known only by the Internal Revenue Service. It is critical you stay within the IRS norm.
3. Deducting Office in the Home .
You can only take a home office deduction if you meet all of the qualifications, including regularly and exclusively using part of your home as your principal place of business. It is important you contact your tax preparer so they can figure out your allowable expenses so you are not flagged for a tax audit.
4. Missing income.
IRS runs a matching check on all 1099s and W-2 it receives. If you do not report all your income on your tax return the Internal Revenue Service will issue a mismatch report. These tax audits usually run 18 months behind and the Internal Revenue Service collects over $10 billion a year in missing income matching.
5. Business losses.
In a tough economy, business losses are more common however that does not mean the IRS won’t double check them. Make sure your expenses are legitimate and eligible to be deducted.
6. Charitable deductions.
You’ll need a canceled check or dated receipt for any cash contributions, and contributions of $250 or more require written acknowledgement from the charity. Be careful on charitable to deduction’s , they are a true red flag.
8. Medical expenses.
If you’re 64 or younger, you can deduct these costs only to the extent they’re greater than 10% of your adjusted gross income. It’s important to keep detailed records. Remember, you can’t deduct the cost of over-the-counter medicine, health club dues or most cosmetic surgeries. That’s a no,no.
9. Foreign bank accounts.
If you cannot reported income on a foreign bank account you could be in big trouble. the Internal Revenue Service and the Department of Justice is cracking down on those people not reporting for income.
The United States has over 90 treaties in place with foreign countries and various financial institutions to reciprocate the names of those having accounts. I would urge anyone reading this blog to make sure they report all foreign income. You may be looking at more than just an IRS audit you could be looking at criminal prosecution.
10. The random sample audit.
The Internal Revenue Service randomly samples so many returns every year. If you are a victim of random sample audit be aware that IRS will audit everything on your tax return. They do this to set up norms and standards for future tax audits across the country.
If you need IRS tax audit help, representation or for someone to provide audit defense contact us today for initial consultation and evaluation on your case.
IRS Tax Audit Help, Defense, Representation – Affordable Experts – Stuart, Palm City, Hobe Sound – Florida
