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IRS Audits Tax Procedure

Five Things to do to Prepare for an IRS Audit

The IRS audit process typically starts with a letter from the IRS indicating that your tax return has been selected for audit.  The letter will typically identify the tax form, tax year, and taxpayer (if it is not an individual income tax return) that is being audited. It will also provide the contact information for […]

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IRS Audits Tax Procedure

What Are the Chances of Being Audited?

What are the chances of being audited?  While the IRS does not release many of the factors that it uses to identify taxpayers for tax audits, the IRS does release general statistics that can help gauge an individual’s audit potential – or can they? The IRS Statistics  Looking at the most recent IRS statistics for […]

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IRS Audits Tax Procedure

IRS Statistics for Audit and Enforcement Rates

While the IRS does not release many of the factors that it uses to identify taxpayers for tax audits, the IRS does release general statistics that can help gauge a taxpayer’s audit potential.  These statistics help answer the question of “what are the chances of being audited?” IRS Audit Rates Looking at the most recent IRS […]

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IRS Appeals IRS Audits Tax Procedure

The IRS’s New Appeals Arbitration Program

The IRS Office of Appeals provides a great forum for resolving IRS tax disputes.  While appeals settles a lot of cases, it doesn’t settle them all.  This is where the IRS arbitration program comes in.  It is for those close cases that almost settled, but didn’t.  The IRS recently released Revenue Procedure 2006-44, which sets out […]

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IRS Audits Tax Procedure

Texas Tax Attorney Contests IRS Bypass Letter

In People’s Source International, LLC v. United States, the IRS issued an Aurora, Texas tax attorney a bypass letter. A bypass letter is a letter that the IRS sends to a taxpayer when the IRS believes that the taxpayer’s tax attorney has failed to respond to IRS requests. The Texas tax attorney contested the bypass […]

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IRS Audits Tax Procedure

Recent Texas Tax Case is an Example of why Taxpayers Should Hire a Tax Attorney

Taxpayers often ask me why they should hire a tax attorney. My response is always that hiring a tax attorney to review and structure your financial affairs can give you some certainty that things are done right, in many cases it can save you significant amounts of tax and later IRS problems, and it can […]