Audits are on the rise will you be one.
The number of IRS Tax Audits has risen every year.  Fresh Start Tax experts  expect that trend to continue, with the ballooning federal deficit and the additional $400 million earmarked for tax enforcement in the upcoming fiscal year, IRS has also more federal agents to make this happen. The government needs to collect the money’s somehow and this is part of the plan.
You should know that your audit risk in any one given year is very slim, marginal at best. IRS statistics show the percentage to be just over 1% if your income is under $200,000, 2% from there to $1 million, and 6% for the super super super rich, based on 2009 data. You can check the data out yourself on the IRS.GOV website Those selected tend to be self-employed or have unusually large write-offs. DIF scores are used by IRS to determine who gets audited for the most part. Audit letters typically go out 18 months after the filing date.
If you are one of the unlucky few to get the dreaded nasty letter from the Internal Revenue Service, be sure to take the action required within the time frame allotted, usually 30 days. Otherwise the dispute becomes a final assessment and moves on to the collections department of the IRS they will take enforcement action if you do not respond to the letters being sent..Open all mail from the IRS and be responsive to it, met all deadline they give you in the letter. Notify IRS of any address changes so you get all your mail.
Hire a professional tax firm like Fresh Start Tax, former IRS agents.
Three-quarters of audits are conducted by mail, They are called mail correspondence audits. With the IRS simply requesting documentation  on a specific parts of the return. You can handle this type of audit on your own. But if someone else prepared your taxes, they should be able to help you for free. The fee you paid the professional many times may covers such help, and the agreement you have may put the person on the hook for mistakes. Most professional are very willing to help their clients.
Watch what comes out of your mouth
In any audit, avoid offering information beyond what’s asked for. You might unwittingly give evidence that could expand the scope of the investigation.Some questions IRS asks are set up questions, that is in fact just what I would do when I worked for the IRS. People have no idea what is coming there way.
Be friendly, get in and get out.
If you do not like the results, go to the auditor boss and remember you can always appeal the proposed assessment.
A rule of thumb to keep in mind, if you have nothing to fear, be your own representative, if you have tax issues, pull out the wallet. It will save you monies in the long run.
For more comprehensive examination check out our site for in-depth detail.