Facing IRS Audit, IRS Audit Representation – Affordable Former IRS, Riveria, Jupiter, Greenacres

January 17, 2014
Written by: Fresh Start Tax
Fresh Start Tax

 

The affordable, experienced  and trustworthy tax audit solution.

Use former local IRS Agents who understand the audit techniques. We taught Tax Law at the local IRS offices.

If you are facing an IRS audit and need affordable/professional IRS audit representation, call us today for a free initial consultation and you will find out why we are used by hundreds of taxpayers in the South Florida area.

We have been practicing tax representation in South Florida since 1982 and we are A+ rated by the Better Business Bureau.

On our staff are tax attorneys, certified public accountants, and former IRS agents.

 

Most importantly, on staff are former IRS auditors, former IRS revenue agents and former IRS appellate agents who have worked both sides of the fence both working as IRS auditors and in private practice representing and offering the best IRS audit defense possible.

We can give you a real look at how IRS will audit your return and we will usually be able to  reduce the risk of additional tax and penalties.

 

Why did the IRS Select your tax return for a Tax Audit

 

  • Random Sample : The percentage of random audits is very low about 1%. These are very difficult tax audits because the IRS audits everything on the return to set up tax audit norms and DIF scores.

 

  • Computer Scoring: All tax returns are scored by the Discriminant Function System (DIF). Each return is graded by IRS agents that are sent to service centers to review returns that have potential IRS audit revenues that could be collected.Basically the IRS establishes a norm, and checks to see if your tax returns fit the norm. The system also rates the potential for adjustments based on historical data and past IRS experience. About 90% of all tax returns are audited because of risk or potential. In our office are former IRS agents who used a grade tax returns at service centers.

 

 

  • Self Employed or Small Business Losses: The IRS despises small business losses, and hates hobbies even more. If you are showing a hobby loss on your tax return there is extremely good chance you’re asking IRS to say please come out and audit me. These type businesses are usually red flags for IRS audits. Keep in mind many taxpayers are honest but the majority of people who tend the  fudge on their tax returns are found in the area of self-employed and small business.

 

 

  • High Tax Deductions: If your deductions such as mortgage interest or charitable contributions are outside the average for your income range, you could trigger an IRS audit. If your  deduction is legitimate  do not be afraid to take the deduction. Many times we recommend photocopying the check and the bill and attaching it to your tax return.

 

  • Home Office Deduction: IRS Tax Audits based on home offices  are looked at closely to make sure taxpayers are not abusing income tax law. You should check with a true tax professional before taking the office in the home deduction and find out what the general acceptance standards are.

 

  • Meals, Entertainment and Travel: These expenses have commonly been abused by past taxpayers, and the IRS has historical data showing the averages as compared to income depending on your profession.   Keep very detailed records if you are claiming these deductions.

 

  • Information Matching: Most all W2’s and 1099’s are electronically transmitted to the IRS.  If your tax return is missing a W2 or 1099, or if the amount you report is different than the amount the IRS has in their database, your tax return will be adjusted or audited. You will generally receive an audit notice about 2 years after the mismatch. The Internal Revenue Service collects over $10 billion on these mismatch programs.

 

  • Related Examination: If your business partner’s individual tax return is examined and a particular issue or transaction is discovered, your tax return might be examined as well.  This is not limited to business partnerships. It also includes any transaction or agreement between you and another taxpayer that causes a taxable event on two different tax returns might flag you if one tax return shows a discrepancy. It is also very possible that if a former spouse is audited that your tax return may be picked up as well.

 

  • Abusive Tax Avoidance Transactions: Certain promoters and participants involved in abusive tax avoidance transactions have found themselves in trouble.  From there, the courts and other enforcement agencies have provided lists of names based on credit card data, summons and other testimony to allow the IRS to follow up.  So you might simply be guilty by association.Also IRS is hot on the trial of all non filers of FBAR.

 

  • Large Corporations: The IRS examines many large corporate tax returns on an annual basis. Percentages jump to 10% of all corporate tax returns are audited.

 

  • Other: Field IRS offices in conjunction with local agencies identify certain tax returns for examination based on local compliance initiatives, tax return preparers or specific market segments.

 

 

Facing IRS Audit, IRS Audit Representation – Affordable Former IRS, Riveria, Jupiter, Greenacres

Filed Under: IRS Tax Audit | Tax Help
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