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Audit

The IRS examines (audits) tax returns to verify that the tax reported is correct.

Selecting a return for examination does not always suggest you have either made an error or been dishonest.
In fact, some audits actually result in a refund or acceptance of the return without change.

 Audit Methods An audit may be conducted by mail or through an in-person interview and review of your records. The interview may be at an IRS office (office audit) or at your home, place of business or your designated representative’s accountant’s office (field audit).If you’re being audited, you need professional representation.  We have a former IRS Senior Auditor on staff to help you.We offer two basic services:

  1. Full Representation– We will meet and/or speak to the IRS directly on your behalf. We will handle all aspects of the Audit.
  2. Self Representation– We will perform an detailed analysis of your case and provide you with complete instructions for you to respond to the audit. This service is designed for simple, single item audit cases.

Call or click today at 800-987-4165 for complete details on how we can help you through your audit.

 
The IRS selects returns using a variety of methods, including:

  • Potential participants in abusive tax avoidance transactions — Some returns are selected based on information obtained by the IRS to identify promoters and participants of abusive tax avoidance transactions.
  •  Computer Scoring — Some returns are selected for audit based on computer scoring.  Computer programs give each return numeric “scores”.   Based on various score rates past IRS experience with similar returns. The Unreported Income DIF (UIDIF) score rates the return for the potential of unreported income. IRS personnel screen the highest-scoring returns, selecting some for audit and identifying the items on these returns that are most likely to need review.
  • Large Corporations — The IRS examines many large corporate returns annually.
  • Information Matching — Some returns are audited due to “payer reports”, such as Forms W-2 from employers or Form 1099 interest statements from banks, do not match the income reported on the tax return.
  • Related Examinations — Returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for examination.
  • Other — Area offices may identify returns for examination in connection with local compliance projects. These projects require higher level management approval and deal with areas such as local compliance initiatives, return preparers or specific market segments.