In plain terms, an IRS audit is to ensure that your tax return is filed correctly – that you’re not claiming too many unwarranted deductions, and that you’re paying what you really owe Uncle Sam. It all starts with a number that the IRS computer assigns to your tax return known as the DIF score.
The IRS is pretty hush-hush about how it’s calculated, but the higher your DIF score, the higher your chances are of getting audited. Consequently, one in every 75 taxpayers is audited. And when it comes to audits, the IRS wins 80 percent of the time. In the eyes of the IRS, you are guilty until proven innocent — which means the IRS can start an audit by disallowing every deduction you’ve made on your return until you prove each one is legitimate.
An incorrect assessment by an IRS auditor can end up costing you thousands of dollars, and taxpayers who seek professional tax attorney and tax resolution services have a better chance of successfully negotiating a tax settlement than those who try to deal with an IRS audit on their own.
Therefore, it’s important for taxpayers to know the options available to them for audit representation that can save them time, money and frustration. As the nation’s leading tax resolution firm, we are highly skilled at defending taxpayer rights in IRS audits.
Especially with the record $5.5 billion budget for IRS enforcement and hundreds of new IRS agents hired to crack down on back taxes and delinquent tax returns, I cannot emphasize enough how vital it is to also understand the process for resolving your IRS tax debt so that you have realistic expectations and know which tax resolution strategies you can benefit from.