Boca Raton – IRS Tax Audit Help, Back Tax Problems – Affordable Former IRS, Attorneys, CPA’s
We are professional tax firm located in South Florida who are Affordable Tax Experts who specialize in IRS tax matters, tax audits and problems. 954-492-0088 We Know the System!
We are comprised of tax attorneys, certified public accountants, and former IRS agents.
We have over 60 years of working directly for the Internal Revenue Service and the local IRS offices.
We are A plus rated by the BBB and have practiced in South Florida since 1982.
Received a IRS Audit notice for Back Taxes
If you receive a IRS tax notice that the IRS is auditing your personal or business tax returns, talk to a true tax professional at FST.
If your income or business tax return has been selected for audit it does not mean you did anything wrong.
There are a number of reason your tax return was flagged for a tax audit.
Why was your tax return pulled?
IRS runs a number of audit programs.
Each tax return that is filed goes to a IRS service center where it is graded by the IRS computer system. Each tax return has a numerical score put on there by the computer called a DIF score.
The DIF score will determine your placement of your tax return against other tax returns filed with your given AGI and deductions. Those tax returns that fall out of the national norm are then given to a group of reviewing agents that determine whether your tax return is audit worthy.
From there the tax returns are sent to the field offices where group managers review the potential audits and gives them to the tax auditors depending on case inventory and ability to handle the tax audit.
This is a very smooth process that has been running for many years
The scoring system looks at some of the following areas:
- Low gross profit margin
- High auto expenses
- High business use of autos
- Number of autos used in business
- High travel and entertainment
- Little or no profit from business operations
- Hobby Losses
- Foreign Bank Accounts
You can ask the IRS Agent why your tax return was chosen for a tax audit
It is okay to ask why your return was selected for audit or why you were singled out.
The IRS has the option to tell you or they can withhold. Many times if you were picked for an IRS audit because somebody has given IRS information about you, the IRS will withhold reasons for your tax audit.
Kinds Of Income Tax Audits
There are four basic kinds of IRS audits.
1. Correspondence Audit.
It is a letter from the IRS Service Center requesting that you send in copies of your canceled checks and receipts in order to verify certain deductions on the return.
This type of audit is reserved for small, simple tax returns.
The Internal Revenue Service conducts 1.1 million audits as a result of correspondence audits each and every year as a result of these correspondence audits the IRS collects a smooth $10 billion.
2. Office audit.
Will arrive by mail. The letter identifies specific items on the return that are in question and requests that you or your representative to bring certain documents to the local IRS office for the auditor’s examination. These are fast and quick audits. The IRS auditor has the ability to audit anywhere from 15 to 20 taxpayers per week.
If your business is a small, sole proprietorship with sales under $250,000, you may be subjected to this type of audit. It is still wise to get formal IRS representation because IRS has the authority to audit three years worth of tax returns they can go forward and they can go back.
3. Field audit.
The IRS revenue agent is a seasoned tax professional and audits high income taxpayers, individuals and corporations.
This type of audit is called “field” audit because the agent will want to conduct the audit at your place of business rather than the IRS office or the office of your tax professional.
How the Audit may take place.
IRS will interview the principals.
The IRS Revenue Agent will generally;
1. Arrange a date(s) to be at your place of business,
2. determine where the records are located,
3. Ask you to provide a list of records that are to be made available.
4. Interview the responsible parties.
It is crucial that during a field audit, you have solid tax representation.
One of the things a season tax representative can do is to make sure IRS is not a fishing expedition and a good tax representative can minimize the IRS audit.
Being former IRS agents we can tell you we’d much rather have just the taxpayer there than the representative. On the other hand, if your records are squeaky clean you have nothing to worry about you should and can represent yourself. However, if you have any issues or skeletons or you are not sure you will save yourself a bunch of money by hiring a season tax professional.
4.TCMP Audit.
A TCMP audit means taxpayer compliance measured program.
IRS random samples approximately 10,000 tax returns across the United States to set up national and regional norms. If you have received the TCMP audit you can expect everything on your tax return to be audited. These are a pain in the butt audits but necessary for the IRS to set up their norms and standards.
If you have any questions or concerns call us today and we can help resolve your IRS audit or back tax problems.
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