IRS Tax Examination & State Tax Audit – Ft. Lauderdale, Miami, Palm Beaches    954-492-0088

 
 
We are a local South Florida Tax Firm, since 1982 and A plus rated.
The Internal Revenue Service conducts a tax examination for 1% of all tax returns filed. The more money you make, a greater risk of an IRS tax examination tax audit.
if you make over $1M big ones you have a 12% chance of being audited by the IRS.
Approximately 1.4 million taxpayers get audited by mail correspondence.
If you have been notified by the Internal Revenue Service that your tax return is under examination or the Internal Revenue Service has sent you a correspondence tax audit call us today and we will conduct for no cost a complete review to let you know the strategies that can help you move forward without damage by the Internal Revenue Service.
IRS audits can be conducted not only by mail but often also as office audits.
IRS may choose to send a revenue agent to your home or place in of business conduct a field audit.

Is Tax Representation needed, it all depends

 
Many taxpayers do not know whether tax representation is needed. There is a simple rule of thumb.
If you feel that there’s nothing wrong with your tax return, by all means represent yourself before the Internal Revenue Service. However if you feel there are skeletons in your closet or you took more aggressive positions on tax matters than you should  have,  you should  seek a tax professional to go ahead and represent you for your IRS tax examination tax audit.
 

What is an IRS Tax Examination Tax Audit?

 
An IRS audit is a examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate.
Check out IRS Publication 556, Examination of Returns, Appeal Rights and Claims for Refund explains the audit process in more detail, that will explain more of the process.
 

IRS Tax Examination Audit Selection

 
Selecting a return for audit does not always suggest that an error has been made.
Tax Returns are selected using a variety of methods, including:
a. Random selection and computer screening – sometimes returns are selected based solely on a statistical formula.  These audits are generally known as the national research projects.
b.Document matching – when payor records, such as Forms W-2 or Form 1099, don’t match the information reported. Approximately 1.4 million tax returns are audited this way.
c. 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 audit. This is a smaller group of those selected for an IRS tax examination.
 

IRS Tax Examination Audit Methods

 
An audit may be conducted by mail or through an in-person interview and review of the taxpayer’s records.
The interview may be at an IRS office. This is called a office audit. If it is at the taxpayer’s home, place of business, or accountant’s office it is called a field audit.
The IRS will tell you what records are needed. Audits can result in no changes or changes. Any proposed changes to your return will be explained.
 

IRS Tax Examination  – Audit Notification

 
Should your account be selected for audit, you will be notified in two ways:
1. By mail, or
2. By telephone
In the case of a telephone contact, the IRS will still send a letter confirming the audit.
PLEASE NOTE : E-mail notification is not used by the IRS.
 

What are your rights during an  IRS Tax Examination Tax Audit

 
Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund processes.
These rights include:
1. A right to professional and courteous treatment by IRS employees.
2. A right to privacy and confidentiality about tax matters.
3. A right to know why the IRS is asking for information, how the IRS will use it and what 4. will happen if the requested information is not provided.
5. A right to representation, by oneself or an authorized representative.
6. A right to appeal disagreements, both within the IRS and before the courts.

IRS Tax Examination Audit Length

 
The length of each audit varies depending on the type of audit, the complexity of items being reviewed, the availability of information being requested, the availability of both parties for scheduling of meetings and your agreement or disagreement with the findings.
 

Tax Records Needed

 
You will be provided with a written request for specific documents needed.
The law requires you to retain records used to prepare your return. Those records generally should be kept for three years from the date the tax return was filed.
The IRS does accept some electronic records. If records are kept electronically, the IRS may request those in lieu of or in addition to other types of records. Contact your auditor to determine what can be accepted to ensure a software program is compatible with the IRS’s.
 

Audit Determinations

 
An audit can be concluded in three ways:
No change. An audit in which you have substantiated all of the items being reviewed and results in no changes.
Agreed: an audit where the IRS proposed changes and the taxpayer understands and agrees with the changes.
Disagreed: an audit where the IRS has proposed changes and the taxpayer understands, but disagrees with the changes.
 
Call us today and speak directly to former IRS agents, managers and tax instructors that taught tax law and tax audit law at the Internal Revenue Service.
We are affordable and free consultations are available.
 
IRS Tax Examination – Tax Audit –  Ft. Lauderdale, Miami, Palm Beaches