An audit conducted by the Internal Revenue Service (IRS) can be time-consuming, stressful and expensive. These investigations can also be intrusive as auditors bombard taxpayers with a long list of questions concerning specific information that is designed to help their case. That is why it is essential to have an experienced tax law attorney in your corner as soon as you catch wind of an IRS investigation into your tax matters.
The tax law attorneys at Frost & Associates, LLC will put their extensive experience to work for you when you are facing an audit or when you wish to appeal a decision made by the IRS. From the initial notice to the final resolution, our team will work hard to help you achieve a positive legal outcome.
How Tax Returns are Selected for Greater Scrutiny
Many people are unclear as to why or how their tax return became subject to an IRS audit. The IRS employs a number of methods when selecting tax returns for increased scrutiny, including:
- Computer scoring: Some tax returns will be selected for an audit based on the score received by a computer program. Essentially, one score is used to rate the potential for change on a tax return, based on similar returns received in the past. Another score is used to determine the potential for unreported income. IRS agents will pluck the highest scoring returns in an effort to find the best chances for a tax adjustment.
- Information matching: When forms such as W-2s and 1099s do not match up to the income reported on a tax return, red flags are raised and the return is likely to be audited.
- Abusive tax avoidance transactions and foreign accounts: The IRS is constantly on the lookout for participants in abusive tax avoidance transactions and for taxpayers with foreign accounts. If you are suspected of participating in or promoting such transactions, or if you have foreign bank accounts, you can expect greater scrutiny.
- Related examinations: At first blush, your return may not attract much attention from the IRS. However, if your return involves issues or transactions with other taxpayers, such as business partners, who received an audit notice you can expect that your return will get a closer look as well.
In addition to the above, returns may be selected for an audit due to local campaigns, such as compliance initiatives, or as the result of information provided by informants. In any case, our Florida tax law professionals will get to work right away to prepare a strong response to any IRS inquiries.
Dedicated to Representing and Protecting Your Interests
Having a dedicated tax attorney in your corner can help serve as a buffer between you and the IRS. Our lawyers can represent you and your interests in the audit appointment without requiring your presence. This can help prevent you from being put on the spot and forced to answer difficult questions concerning personal subjects. In addition to providing experienced representation in federal audit matters, we also handle international tax issues, as well as Florida state tax issues.
Contact Our Miami IRS Appeals Attorneys
If you wish to appeal an IRS decision, or if the IRS is making inquiries into your tax filings, you need qualified legal representation. Contact our Florida IRS audit lawyers online or call 305-363-6176 to schedule an appointment to discuss your situation