IRS audit statistics pretty much stay the same every year. There are very few variances that occur from year to year but when they do they are attributed generally to the availability of funding from Congress to the Internal Revenue Service.
IRS Tax Audit Statistics
- The IRS audits about 1 percent of the individual tax returns.
- 143.4 million: Individual federal tax returns filed in 2011.
- 1.4 million: Individual tax returns examined by the IRS, resulting in notices being mailed or in-person audits.
- 90 percent: Tax returns audited in person resulting in a recommended change in taxes.
- 85 percent: Tax returns audited via mail resulting in a recommended change.
- $15.1 billion: Amount of recommended additional taxes from the audits.
- $16,851: Average recommended additional taxes per in-person audit.
- $8,241: Average recommended additional taxes per mail audit.
- Source: 2012 Internal Revenue Service Data Book
How to pick effective Tax Representation for a IRS Tax Audit
The three most important words to remember to find an effective tax representative for IRS tax audit is this: Experience, experience, experience.
If somebody is going ahead and represent your best interest for an IRS tax audit they should have represented hundreds of taxpayers in the past.
They should have an extensive knowledge of the tax code, your tax return, the issues at hand, have an understanding of the IRS processes and systems.
An effective IRS tax representative will understand the IRS settlement procedures, understand how to get your case through the IRS closing system fast, effectively, and with minimal cost.
They should understand the IRS hazards of litigation theories to understand how far they can take your case.
An IRS office auditor will conduct the tax audit at the local office while IRS revenue agent will handle more complex cases and those tax audits generally are at the place of business or at the tax professional’s office.
If you feel you have nothing to fear on your tax return you should feel free to represent yourself however if there are some issues you are not sure of it is always best to have a professional person handling your case, they will save you time, worry and lots of money.
Always check out the professional firm that will be doing your work along with the bios of the person that will be doing your IRS tax representation. In every single case check out the Better Business Bureau ratings and check to see if there are complaints on file.
Most credible companies will have an A+ rating by the BBB and their firm will have tax attorneys, CPAs, former IRS agents or enrolled agents handling your case.
At FST we have over 60 years of direct work experience at the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.
We are true tax experts for IRS tax audits.
IRS Tax Audit Statistics – How to pick effective Tax Representation for a IRS Tax Audit
You can call us today for free initial tax consultation we can review and assess your upcoming tax audit and lets you understand how IRS will view your return. Call us today for free tax consultation
