If you are going through an IRS large, small business tax audit call former IRS agents who know the system since 1982.
We are a local South Florida tax from that specializes in IRS tax defense, tax collection defense, appellate defense and anything related to IRS, federal or state tax representation. We have been in practice since 1982 and are staffed with a tax attorney, CPAs and a host of former IRS agent employees.This is our specialty and we know our business.
If you are going through an IRS small business tax audit it only makes sense to call former IRS agents, managers and supervisors who know the system that can navigate you and get you the best possible result.
Your tax return gets audited for a variety of reasons in our firm can offer you the best possible tax defense because of our internal knowledge of the system and the years of experience that we have in working these cases.
We can also function if this case needs to go to the IRS appeals offices and/or if you will all money as a result of the tax on we can defend you during the IRS collection process.
We are a full-service firm and you will have on your representation team a former IRS agent and supervisor in the audit division of the Internal Revenue Service.
Why am I being selected for an audit?
Selection for an audit does not always suggest there’s a problem.
The IRS uses several different methods:
• Random selection and computer screening – sometimes returns are selected based solely on a statistical formula.
IRS compares your tax return against “norms” for similar returns. We develop these “norms” from audits of a statistically valid random sample of returns, as part of the National Research Program the IRS conducts. This is the main reason for IRS tax audits because your tax return has fallen out of the national standard.
IRS has a DIF score which stands for discriminatory index function in your tax return has been flagged by this computer.
The IRS uses this program to update return selection information.
• Related examinations – we may select your returns when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit.
Next, an experienced auditor reviews the return. They may accept it; or if the auditor notes something questionable, they will identify the items noted and forward the return for assignment to an examining group.
Note: filing an amended return does not affect the selection process of the original return.
However, amended returns also go through a screening process and the amended return may be selected for audit. Additionally, a refund is not necessarily a trigger for an audit.
How am I notified?
Should your account be selected for audit, we will notify you by mail. We won’t initiate an audit by telephone.
How will the IRS conduct my audit?
The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or at the taxpayer’s home, place of business, or accountant’s office (field audit).
Remember, you will be contacted initially by mail. The IRS will provide all contact information and instructions in the letter you will receive.
If we conduct your audit by mail, our letter will request additional information about certain items shown on the tax return such as income, expenses, and itemized deductions. If you have too many books or records to mail, you can request a face-to-face audit.
The IRS will provide contact information and instructions in the letter you receive.
Depending on the issues in your audit, IRS examiners may use one of these Audit Techniques Guides to assist them. These guides will give you an idea of what to expect.
What do I need to provide?
The IRS will provide you with a written request for the specific documents we want to see. Here’s a listing of records the IRS may request.
The IRS accepts some electronic records that are produced by tax software.
The IRS may request those in lieu of or in addition to other types of records. Contact your auditor to determine what we can accept.
The law requires you to keep all records you used to prepare your tax return – for at least three years from the date the tax return was filed.
How do I know if the IRS received my response?
For any delivery service you may use, always request confirmation that the IRS has received it. For example, if you use the US Postal Service, you can request one of their additional services to ensure delivery confirmation.
What if I need more time to respond?
For audits conducted by mail – fax your written request to the number shown on the IRS letter you received. If you are unable to submit the request by fax, mail your request to the address shown on the IRS letter. We can ordinarily grant you a one-time automatic 30-day extension.
IRS will contact you if we are unable to grant your extension request.
However, if you received a “Notice of Deficiency” by certified mail, we cannot grant additional time for you to submit supporting documentation.
You may continue to work with us to resolve your tax matter, but we cannot extend the time you have to petition the U.S. Tax Court beyond the original 90 days.
For audits conducted by in-person interview – If your audit is being conducted in person, contact the auditor assigned to your audit to request an extension. If necessary, you may contact the auditor’s manager.
How far back can the IRS go to audit my return?
Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years.
IRS usually don’t go back more than the last six years.
The IRS tries to audit tax returns as soon as possible after they are filed. Accordingly most audits will be of returns filed within the last two years.
If an audit is not resolved, we may request extending the statute of limitations for assessment tax.
The statute of limitations limits the time allowed to assess additional tax.
It is generally three years after a return is due or was filed, whichever is later. There is also a statute of limitations for making refunds. Extending the statute gives you more time to provide further documentation to support your position; request an appeal if you do not agree with the audit results; or to claim a tax refund or credit. It also gives the IRS time to complete the audit and provides time to process the audit results.
You don’t have to agree to extend the statute of limitations date. However if you don’t agree, the auditor will be forced to make a determination based upon the information provided.
You can find more information about extending a statute of limitations in Publication 1035, Extending the Tax Assessment Period, or from your auditor.
How long does an audit take?
The length varies depending on the type of audit; the complexity of the issues; the availability of information requested; the availability of both parties for scheduling meetings; and your agreement or disagreement with the findings. if you’re going through an IRS tax audit in a revenue agent is reviewing your records those audits can take months.
You really need to have a seasoned IRS tax defense veteran represent you any time you’re dealing with an IRS auditor or revenue agent unless you have absolute pristine records.
What are my tax rights?
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:
• A right to professional and courteous treatment by IRS employees.
• A right to privacy and confidentiality about tax matters.
• A right to know why the IRS is asking for information, how the IRS will use it and what will happen if the requested information is not provided.
• A right to representation, by oneself or an authorized representative.
• A right to appeal disagreements, both within the IRS and before the courts.
How does the IRS conclude an audit?
An audit can usually 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 you understand and agree with the changes.
• Disagreed: an audit where the IRS has proposed changes and you understand but disagree with the changes.
What happens when you agree with the audit findings?
If you agree with the audit findings, you will be asked to sign the examination report or a similar form depending upon the type of audit conducted.
If you owe money, there are several payment options available.
When you call our office we will review the different options available to you in regard to your IRS collection matter. Many people cannot pay the tax adjustment and windup and are currently not collectible or a hardship position while other people’s end up with payment agreements and others file an offer in compromise to settle their tax debt.
Your current financial statement will determine how the Internal Revenue Service foreclosure case and we will review those options if you ever get to that point.
What happens when you disagree with the audit findings?
You can request a conference with an IRS manager. The IRS also offers mediation or you can file an appeal if there is enough time remaining on the statute of limitations.
we can take any case to the IRS the pellet division and in many cases the settlement options are much better than with the regular auditor because they don’t want the cases going to Tax Court.
Call us today for a free tax consultation and speak to a true IRS tax expert regarding any type of IRS audit.
We are experts and specialists in IRS small business audit, revenue agent audits, office audits and mail correspondence audits.
We are a local tax firm and available for free consultations at any time. Feel free to visit our South Florida offices. When you come your office you will speak to a true IRS tax expert.
Former IRS Audit Agents + Expert Help for IRS Large, Small Business Tax Audits + Ft.Lauderdale, Boca Raton, Miami, Aventura, Palm Beaches + Broward, Dade Counties