IRS Audit Letter

At Tax Network USA, we only have three rules when preparing to face an Audit Hearing on your own.

These pretty basic rules are:

1.) NEVER APPEAR AT AN IRS AUDIT HEARING ON YOUR OWN!

2.) NEVER APPEAR AT AN IRS AUDIT HEARING ON YOUR OWN!

3.) NEVER APPEAR AT AN IRS AUDIT HEARING ON YOUR OWN!

An audit of a tax return by the Internal Revenue Service (“IRS”) can occur for a variety of reasons. The IRS identifies certain groups of taxpayers and types of returns that are susceptible to increased tax assessments through the examination process, and selects returns to be audited on that basis. If a return falls within one of these IRS targeted groups, then the likelihood of it being audited is high. The IRS, moreover, routinely audits all clients of a return preparer that is being investigated for preparing fraudulent returns for his clients. Audits are also initiated based on information supplied to the IRS by former spouses, disgruntled employees, business competitors, and others adverse to the taxpayer.

Successful representation in IRS audit cases requires a thorough knowledge and understanding of the IRS’s audit procedures and, of equal importance, years of experience in dealing with Revenue Agents and their managers. Audits typically involve voluminous financial records. It is of critical importance that the taxpayer's representative be able to interpret the relevant records and present them to the IRS in an appropriate manner.

Revenue Agents have the authority to issue summonses to banks, mortgage lenders, securities brokers and others that engaged in financial transactions with he taxpayer. It is imperative that the taxpayer's representative be two steps ahead of the Revenue Agent in gathering and analyzing the documents that will be evaluated by the IRS as part of the audit process. This is especially true in cases involving unreported income or indefensible expenses claimed on a tax return.

Revenue Agents can refer cases to the Criminal Investigation Division of the IRS. If there is a known, serious issue with a tax return, such as unreported income, the audit must be handled with the utmost care to avoid a criminal referral or the imposition of the civil fraud penalty, which is 75% (seventy five percent) of the additional tax due.

A Revenue Agent’s findings can be appealed administratively to the Appeals Division of the IRS. Many cases that couldn't be resolved with the Revenue Agent are ultimately settled in Appeals. Cases that cannot be resolved administratively can be litigated. The fact that a taxpayer's representative is also a litigator, with the ability to contest the case in court, has facilitated settlements with the Examination and Appeals Divisions.

Dealing with an IRS Audit takes up a great deal of time ― precious hours you could be spending with your family or your business. The worst part is that if you don't comply, the cost of any changes made by the Auditor can be more than your annual income. Whether it's a business or an individual, we strongly advise against meeting with the IRS alone in connection with an Audit.

IRS Auditors are trained to get more information out of you than you legally have to provide. They audit people and businesses all day long, every day! How are you supposed to WIN?

If you are smart, you will hire Tax Network USA to handle all correspondence and meetings with the IRS. We will put the IRS on notice that you are serious about winning your case. The preparation time before the audit is extremely important.

Tax Network USA handles IRS Audits by actually performing an audit of your records in our office BEFORE the scheduled Audit Date. This way we uncover areas of weakness before the IRS Auditor looks at your records.

IRS Audits usually start with one year and then expand to other years as the Auditor makes changes. Your goal must be "To stop the Auditors in their tracks on the first year being audited in order to prevent changes to other years."

Tax Network USA's audit experience includes the following issues:

• Unreported Income
• Civil Fraud Penalty
• "Hobby-Loss"
• Partnership Issues
• Disallowed Business Expenses
• Real Estate Transactions
• Characterization of Income
• Abusive Trust Arrangements

You Have the Right to Tax Representation

If you have been contacted by the IRS or your state's Department of Taxation, or have received tax liens, levies or notices of IRS intention to do so, contact us at 888-466-4706 or fill out our online form without delay to discuss the details of your specific tax situation.