Frequently Asked Questions (FAQs)

The IRS utilizes mathematical formulas and statistical sampling techniques to select tax returns that are likely to contain errors and to yield substantial amounts of additional tax revenues upon audit. Through the IRS does not openly disclose all of its audit selection techniques, the following items increase the probability of selection for audit:

• Individuals with large amounts of gross income, self-employed individuals with substantial business income and deductions, and taxpayers with tax deficiencies in the past.
• If information returns such as Form 1099 and Form W-2 do not agree with reported income on the tax returns.
• If an individual's itemized deductions are in excess of norms established for various income levels.
• Information obtained from other sources do not agree with that of reported on the tax returns.

One a return is selected for audit, the taxpayer is notified. If the issue involved is minor, the matter often can be resolved simply by correspondence (a correspondence audit) between the IRS and the taxpayer.

Other examinations are generally known as office audits or field audits. An office audit usually is restricted in scope and is conducted in the IRS facilities. On the contrary, a field audit entails an examination of numerous items on the returns and is conducted on the premises of the taxpayer or the taxpayer's representative.

Yes, under the general rule, the IRS may assess an additional tax liability against a taxpayer within three years of the filing of the income tax return. However, if a taxpayer omits an amount of gross income in excess of 25% of the gross income reported on the return, the statue of eliminations is increased to 6 years.

There is no statue of limitations on assessment of tax if no return is filed or if a fraudulent return is filed.

Our audit representation services are offered at at an hourly rate of $195/hr.

Your request has been forwarded to one of our professionals for review and he/she will contact you within two business days to set up a preliminary conference call to discuss key issues and questions.