IRS Increases Number of Audits by Over 12% Resulting in $38 Billion in Additional Tax Due From Taxpayers

by Harry Galstian

February 7, 2014

The Internal Revenue Service’s Statement of IRS FY 2012 Fiscal Performance Results (Last revised and updated December 31, 2013) listed that the IRS increased examinations across all categories by more than 12% in the Fiscal Year 2012 (October 1, 2011, through September 30, 2012).

The Internal Revenue Service Data Book (Publication 55B issued March 2013) for the Fiscal Year 2012 noted that for the fiscal year the total number of returns audited exceeded 18 million.

“There are two types of audits,” noted Direct Tax Relief’s senior enrolled agent Maurice Rosaler who was with the IRS as a revenue officer and group manager for almost 20 years, “one is a correspondence audit where the IRS sends the taxpayer a notice of their findings while the other type of audit is the field audit when the taxpayer has to come into an IRS office and meet with an IRS Revenue Agent who is an auditor for the government.”

The IRS Data Book listed (Table 10) the total audits for FY 12 as 18,654,923.

18,355.134 were field audits and 299,789 examinations were correspondence audits (Table 10).

“That means,” pointed out Rosaler who has been doing tax resolution for over 26 years, “that the likelihood is if you’re going to be audited by the IRS then you’re going to have to go meet with an IRS agent at an IRS office.”

“And I would not recommend going to that meeting without professional representation,” added the senior enrolled agent.

“A meeting with an IRS field exam agent,” Rosaler went on to explain, “is based on my experience as close to an inquisition as most people are going to experience. This is not something a taxpayer wants to do alone. You want someone with you who knows the rules and regulations and have in-depth knowledge of the Internal Revenue Code and can present your case to the IRS agent in your best interest and in clear and concise terms.”

“Remember,” noted DTR’s senior enrolled agent, “the field agent on an IRS audit is looking out for the government’s best interest and has spent years training on the audit process and the Internal Revenue Code. What a taxpayer who has been called into an audit wants is someone who can do what we call an IRS audit defense and that person is a tax resolution professional such as a tax attorney or enrolled agent and the best way to get that professional help is by looking for and retaining a trusted tax relief firm with those who specialize in the field of IRS exams, audits, and IRS audit defense. The best method is to look for an authentic tax relief firm like Direct Tax Relief which is listed with the BBB with an A rating and zero complaints.”

Rosaler went on to state that an IRS audit defense can be complicated with many steps and procedures and the lasting results can be long-term and severe.

“The end result of an audit,” Rosaler said, “can be additional tax due from the taxpayer. Now the taxpayer as a result of the IRS audit has a new liability, a new tax bill.”

The IRS Data Book (Publication 55B) listed (Table 9A) the total additional tax assessed from audits in FY 2012 as $38,699,308,000.

“That’s over 38 billion dollars that taxpayers now owe and that the IRS is collecting on,” Rosaler pointed out, “that are a direct result of IRS audits. And in many cases, those assessments could have been reduced or even zeroed out if a proper IRS audit defense could have been presented at the time of audit. That is why it is in the best interest of any taxpayer going through an IRS audit, personal or business, to get professional representation.”

Rosaler also noted that “Even after an audit is concluded a qualified tax professional can still help by doing what is known as an IRS audit reconsideration. It’s complicated but an experienced tax attorney or enrolled agent can handle it. The results of the audit reconsideration many times can reverse or reduce the original IRS audit results.”

“The bottom line,” the veteran tax resolution specialist concluded, “is that if you are dealing with the IRS on an audit doesn’t try doing it alone, get professional help.”

Direct Tax Relief has extensive experience in tax resolution and has represented numerous clients since 2007 providing professional legal tax advice to resolve tax matters including audit representation, audit defense, Offer in Compromise, levy and garnishment release, appeal penalties, and establishing minimal payment plans to the government.

If you have unfiled tax returns or owe the IRS or state over $10,000 in back taxes, contact Direct Tax Relief for a free consultation.  We are an IRS tax relief company that can handle your case from beginning to end.

Source: https://www.irs.gov/pub/irs-soi/12databk.pdf?vsmaid=9