Skilled Counsel on Tax Audit Issues

An IRS audit can be very time-consuming, emotionally stressful and financially burdensome for a taxpayer. It is also an invasive intrusion into one’s life. IRS auditors have been known to bombard taxpayers with questions, extracting specific information that helps their case.

This is why you need tax lawyers at Frost Law to create a barrier, or buffer, between the IRS and you, as you do not need to be present during the audit appointment. Using this strategy, you cannot be put “on the spot” and forced to answer specific questions about difficult subjects.

From audit notice to outcome, you can trust our tax lawyers with your legal goals. We serve in the Washington D.C. Metropolitan Area and across the country. Our tax lawyers are well-versed in methods of reconstructing expenses and presenting them to the auditor in a logical format. We have successfully resolved audits with limited records, or no records and receipts at all in many occasions.

Frost Law Offers Strategies & Solutions for IRS Tax Problems

The IRS selects federal income tax returns for special scrutiny using a variety of methods, including:

Computer scoring

Some returns are selected for audit depending on an artificial score assigned by a computer. Computer programs give each return numeric “scores.” The discriminant inventory function system (DIF) score rates the potential for change, based on past IRS experience with similar returns. The unreported income DIF (UIDIF) score rates the return for the potential of unreported income. IRS personnel screen the highest scoring returns, selecting many for audit and also identify items on the returns that are most likely to have potential for an adjustment.

Information matching

Some returns are examined because payer forms, such as Form W-2 from employers or Form 1099, do not match the income reported on the tax return.

Participants in abusive tax avoidance transactions or foreign accounts

Some returns are selected based on information obtained by the IRS through efforts to identify promoters and participants of abusive tax avoidance transactions.

Related examinations

Returns may be selected for audit when they involve issues or transactions with other taxpayers such as business partners or investors, whose returns were selected for audit.

Area offices may identify returns for auditing in connection with local projects such as local compliance initiatives, return preparer projects or specific market segments. It is also not out of the ordinary for audits to be triggered by information received from informants.

We offer free initial consultations and maximum availability to your questions and concerns throughout the legal process. Contact us at (202) 618-1873 today. Based in the Washington, D.C. area, our firm assists clients globally.