We are a local AFFORDABLE professional tax firm that specializes in IRS tax audit defense, help and representation.
We are comprised of tax attorneys, tax lawyers, certified public accountants, former IRS agents.
We have over 60 years of direct work experience in the local, district, and regional tax offices of the Internal Revenue Service. While the Internal Revenue Service we taught tax law.
Why you may have been selected for a Tax Audit
Taxpayers have always wondered how and why they were selected for an IRS Tax Audit.
The IRS audits over 1.4 million tax returns annually and taxpayers are fearful of being audited.
The answer may seem overly simple, but most people do not have knowledge of the IRS Tax Audit Process.
Each and every tax return is issued a DIF Score (Discriminatory Index Function).
A DIF Score “is a mathematical technique used to score income tax returns for examination potential.”
This technique establishes the National Average Guidelines.
If a DIF score is above the national average, then the risk of an audit escalates. The highest scoring tax returns are then forwarded to an IRS Examiner for further review.
So what triggers a high DIF Score?
Falling out of the National Average Guidelines in the selected areas of expense or deductions.
Examples – Charitable Contributions, Casualty Losses, Home Office, and Travel & Entertainment will affect the tax return’s DIF Score.
Other audit triggers are unfiled tax returns and failure to file the FBAR (Foreign Bank and Financial Account)
How DIF Actually Works
To arrive at the DIF score for each tax return, the IRS computer identifies returns by assigning weights and certain basic tax return characteristics.
These weights are added together to obtain a systemic composite score for all tax returns. That score is used to rank all returns into numerical sequence.
The highest scores are then manually reviewed by IRS Agents at the Service Centers to determine the merit and worthiness of a Tax Audit.
Since each return is manually reviewed, if you have an unusually high deduction, attach a copy of the bill, receipt and an explanation to the return.
Those extra steps will probably prevent that tax return from the dreaded IRS Tax Audit.
The number of audits performed annually is also determined by the IRS Annual Budget and Agent availability, region by region..
If are an in need of assistance for an upcoming IRS audit, please contact the Tax Resolution Professionals at Fresh Start Tax LLC.
IRS Tax Audit Defense Help, Representation – Lawyers, Former IRS – North Palm Beach, Ocean Ridge, Manalapan
