Audit Rules The IRS Uses To Select Tax Returns Explained By The Killer IRS CPA, Joe Mastriano.

FOR IMMEDIATE RELEASE
Houston, Texas, United States of America (Free-Press-Release.com) May 10, 2011 -- There are several factors the IRS uses to determine which returns are selected for audit. Consider the following IRS audit rules for selection.
The IRS Uses A Matching Program

With computers these days, its not hard for the IRS to match your return with various documents they received from 3rd parties. They even have a document you can get from the IRS that has all the W-2's, 1099's, and K-1's that were sent in with your social security number on it. Getting them is a must when you prepare several years of back tax returns. The IRS is sent information from your bank on cash transactions totaling over $10,000. Many overseas financial institutions are disclosing accounts owned by U.S. citizens. This matching of information will increase over time. It's best to know what the IRS has on you, before an audit takes place!
IRS Uses A DIF Score

This stands for discriminate income function. Each item on your return is assigned a score based on factors, such as if it's high compared to others in your tax bracket or is it out of line with your other expenses. You can always ask the auditor why you were selected. Most often they will tell you.
Audit Rules for Compliance Audits

Sometimes your return was not selected because they felt something was not right on the return. They want to see if taxpayers are in compliance with the rules for tax preparation. This information gives them feedback on how well the public is understanding the rules. I'm sure it also helped give the IRS more data on all the crooked tax preparers, giving their client's phony home buying tax credits!
Whistle Blowers Program Or Dropping A Dime

The IRS has awarded Whistle Blowers up to 30% of the additional tax money they collect. This program has been getting a lot of attention lately. So if you have been cheating on your taxes and have people who hate you, or are just greedy, you may be the subject in a whistle blowers case.
Form SS8 - Contract Laborer Who Now Wants You To Pay Their Taxes

The IRS is now following up aggressively on the claims of contract laborers who now say that they thought you were taking out withholding tax. First they get audited, and when they see how big their tax bill is they get scared. They then file a complaint with the IRS stating that they are really an employee but you didn't want to pay the payroll tax. As a result the IRS will examine your company's employee - contract labor situation.

There are many IRS audit rules that exist. These rules lead them to audit your return. Please consider hiring a licensed CPA firm in all your dealings with the IRS.

Contact Joe Mastriano PCV, today and get started on resolving your tax problems. With over 30 years of experience and thousands of satisfied clients, we are willing to do the work for you. We will file your returns, meet with the IRS, handle revenue officers, represent you in audits, file for appeals and more. We’ll do whatever it takes to solve your tax problem. Call today to speak with a representative. 713-774-4467

More information can be found online at http://www.taxproblem.org/irs-audit/

audit checklist     audit guidelines     audit representation     audit rules     how to audit     irs tax audit help     Tax Audit Help