IRS Tax Audit Help – Have Former IRS Agents defend your Tax Audit, We Know the System <><
Please feel free to ask us about our faith when you call.
We have 205 years of direct tax experience, 60 years of working for the IRS in the local, district and regional offices. Being former IRS agent managers and supervisors in the audit division gives us a unique advantage & can change the result of an IRS tax audit.
We worked as Agents, Instructors and in Management.
We know the settlement techniques and formulas to save your money.We can represent you whether you have a mail correspondence audit, common office audit or a business tax audit with an IRS revenue agent. you should never speak to IRS regarding an audit unless you contact a professional unless you’re absolutely sure your tax return is sparkling clean in that case there is nothing wrong with you representing yourself.
If you think you have any skeletons on the tax return you would be a fool to move forward. IRS will not only audit that one year but they have the ability to go back three years and move forward as well. Don’t be falling in the trap of self representation in less you know your tax return is worry free.
Be worry free, call us today.
We are a Christian tax firm and please feel free to ask us about our faith when you call.
We are one of the nations most experienced IRS Tax audit help firms.
It only makes sense to have Former IRS Agents and IRS Tax Audit Managers handle your IRS tax audit and give you the most experienced and successful IRS Tax Audit Help.
Facts about IRS Tax Audits:
- The IRS audits a total of 1,391,581 tax returns a year.
- The IRS field agents complete more than 310,000 audits by office or business visits a year.
- The IRS completes over 1,081,152 correspondence audits a year.
- IRS has installed new software tracking systems with the development of the CADE 2 computer to spot and recognize tax audits more proficiently
- IRS collected over $10 billion dollars a year from IRS tax audits.
- IRS employs over 13,000 IRS auditors.
- $5.2billion dollars are collected through the IRS document matching program.
- For truly professional IRS Tax Audit help contact former IRS Agents and Managers.
IRS Policy Statement P-4-21. It states “The primary objective in selecting returns for examination is to promote the highest degree of voluntary compliance on the part of taxpayers.”
The IRS Tax Audit Examination Plan
The plan that is used by the IRS is based on long range coverage planning, and objectives on the resources requested in the Congressional Budget. From this, there is an established plan where staff years are allocated to all area IRS offices using resource allocation and a prescribed methodology. Each Area Manager of the IRS is responsible for preparing an area response following instructions from the National Headquarters.
Staffing for the IRS Tax Audit
Staffing is based on the examination priorities that differs from office to office and region to region, front loaded programs set up before hand, historic examination rates adjusted to yield sure ended results and audits that match experience of the personnel. Each region is excepted to produce tax audits and money from tax audits. IRS is funded thru results.
Why the IRS Audits Tax Returns
a. Front Loaded Programs
Front Loaded programs are those tax audits that IRS DC headquarters has determined are very important and a considerable amount of time must be spent on these programs and activities. Each area has discussions within management as to what the programs should be for each region, district, and office.
Some of the programs are:
- Special enforcement programs – An example of this may be compliance of all flee market vendors, a program I was involved with
- High Income non-filers – The IRS would get their information from a match program of w-2’s and 1099’s and match up social security numbers against filed returns
- Abusive Tax Avoidance – This could be in the area of offshore activities
- Offshore credit card program
- National Research programs – Those set forth by management after doing a trends project
- FBAR filing – IRS is currently targeting those with overseas bank accounts
- Non- filers – IRS is presently forming a task force to seek non-filers though aggressive means.
b. The IRS makes sure there is balanced coverage.
The National Office makes sure there is a balanced approach for audit return delivery and tax compliance. Resources and inventory and the size of personnel all go into this formula. The focus is blended into these areas:
- Individual returns less than $100,000.
- Individual returns greater than $100,000 but less than $200,000.
- Individual returns greater than $ 200,000.
- Small Business Corporations.
- Small Business Flow-Through Entities – S Corporations, Fiduciaries and Partnerships.
c. Classification Plan
The IRS will prepare a plan, which is classified. A National DIF score indicator is placed on all Federal Income tax returns that are filed. Each tax return has certain factors that contribute to its score such as Gross Income, Adjusted Gross Income and line item expense.
There are several classified secrets that go into the DIF score.
Each tax return is processed through the IRS computer line item by line item.
A DIF score label is placed on every tax return with its DIF number. A tax examiner or Revenue Agent manually eyeballs each and every tax return with a high DIF score.The examiner then determine which return has the highest probability of tax audit success.
d. DIF Cutoff Score
The IRS will calculate the Area DIF cutoff score for each activity code, giving consideration to the selection rate. This is the lowest DIF score necessary to secure the number of returns required for audit. For example, if the return plan shows 225 returns for an activity code and the selection rate is 70%, the IRS will need to order 321 returns (225/70%).
The DIF Cut off Score is 500. The number of returns with DIF scores greater than 550 is 280, which is less than the number of returns required, so the lowest DIF score on an ordered return will be in the range of 500 to 550 and the DIF cutoff score is 500. This is the IRS example as found in the IRS IRM section 4.
e. Where your case is worked
Examination inventory is assigned to IRS offices based on ZIP codes, using the Look up Tables at Martinsburg Computing Center.
f. High Assault Risk Areas
Certain ZIP code areas are identified as High Assault Risk Areas. There are special instructions the IRS has regarding these audits. These returns will be audited.
Survey of Examination Cases. The IRS can look over your case and close it with an eyeball look.
- While cases should be selected and started in accordance with all guidelines, in a limited number of circumstances, there may be returns that appear in the “judgment of the examiner and manager” to warrant survey without taxpayer contact. That is to not even contact the taxpayer.
- Cases delivered to the IRS area manager will generally fall into one of three categories: mandatory work, strategic (priority program) work, and non-strategic work.
- Mandatory work includes nationally-coordinated research projects such as NRP and employee audits (excludes “new” IRS employee audits)
- Strategic work is identified annually in the Exam Program Letter which can be found at http://sbse.web.irs.gov/Exam/. The procedures to survey strategic work and referrals from other business units, “new” employee audits and cases with previous taxpayer contact require an explanation for the rationale for the survey.
- Cases that are not mandatory work, strategic work, a referral from another business unit, and are not part of an employee examination or research study may be surveyed based upon the professional judgment of the examiner with concurrence of the immediate supervisor.
- Here are some factors to consider when determining whether to survey strategic work:
- Taxpayer is in bankruptcy
- Taxpayer has suffered an extreme hardship or illness
- Taxpayer is deceased, or
- Examiner has additional information that was not available during classification
- This is in the complete judgment of the IRS tax auditor
From year to year the IRS changes their programs to keep everyone honest. However, after years of experience, a trained eye can know what tax returns will be pulled for audit.
Why use former IRS agents for IRS tax audit help
Being former IRS agents we know all the protocols, all the theories, all the settlement formulas and all the tax procedures the IRS will use for a IRS tax audit.
While most tax professionals learn their IRS Audit skill during on-the-job training, former IRS agents and managers actually know the insider programs and insider secrets to successful tax audits.
The team of tax professionals we have at fresh start tax not only were former IRS agents and managers but were former instructors with the Internal Revenue Service not only taught a local office but also taught in the district and regional IRS offices as well.
We are one of the most experienced tax firms when it comes to IRS tax audit help.
If you’re got a hire a professional tax firm is wise to hire certified public accountant or former IRS agents and managers who can provide you the very best IRS tax audit help.There are many excellent tax firms to help you through this problem make sure you check on their experience and their Better Business Bureau rating.