An IRS audit can be time-consuming, stressful, expensive, and intrusive. Auditors will overwhelm taxpayers with a long list of questions in an attempt to elicit specific information that will help their case. To prevent yourself from accidentally disclosing damaging information, it is recommended that you contact an attorney as soon as you are aware that the IRS is investigating you.
In addition to his legal experience, Glen Frost of Frost & Associates is an active certified public accountant and a former forensic accountant. He will put his extensive experience to work for you if you are facing an audit and can handle your case from the initial notice to the final resolution.
Why You Were Audited
If you are curious as to why your tax return became subject to an IRS audit, you should know that the IRS employs certain methods to choose which tax returns have increased scrutiny. These methods include:
- Information matching: Employers and other entities that provide you with income send your W-2s and 1099s to the IRS. If the income reported on your return does not match the amounts reported on these tax forms, the return is likely to be audited.
- Computer scoring: A computer program will score your return based on the likelihood that you have misreported income. IRS agents then pick the highest scoring returns and will analyze them to see if there needs to be a tax adjustment.
- Abusive tax avoidance transactions and foreign accounts: If you are suspected of participating in or promoting tax avoidance, or if you have foreign bank accounts, you can expect greater scrutiny.
- Related examinations: If your business partner or a similarly related party has been audited, there is a good chance that your return will be audited 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.
If the IRS is inquiring into your tax returns, having a tax attorney can serve as a buffer between you and the IRS. Our lawyers can represent you during the audit without your presence, which prevents you from having to answer difficult questions concerning personal subjects.