IRS Audits

​IRS audits are on the increase.

The IRS Commissioner has promised Congress

he will continue to inflate the volume of audits over the next decade, (meaning they will increase audits and collect the monies owed in interests and penalties).

With our country’s debt ratio, the increases are likely to intensify rapidly.

  • The COVID pandemic slowed the process since March of 2020, however as of October 2021 the IRS has ramped up the volume of audits. For we the taxpayer this means that all conflict/irregularities for the past three years are now facing penalties and interest accrued over the past three years.
  • Enforcement and collection of monies owed is the cornerstone of every commissioner's responsibility.
  • This includes Levies to property, freezing assets and bank accounts. Forceful collection on what they see as owed in taxes.
  • Non-Filer taxation: IRS has increased its manpower to close the enormous tax gap in unreported income or non-paying taxpayers.

IRS Audit Potential High-Risk Criteria (are you in one of these categories)

  • Under reporting income
  • High dollar amount for a single tax deduction
  • Size of your deduction in relation to your income
  • As your income grows so does your chance of audit
  • Your deductions should be in line with your circumstances

         Meaning; if your profession does not warrant expenses that you are claiming a red flag is generated

  • Self-employed entrepreneurs are audited more frequently than employed individuals
  • Complex tax returns prepared by yourself have a higher risk of audit rather than professional tax preparers
  • Itemized deductions are audited twice as often as the standard deductions
  • Writing any declaration of your dissatisfaction on a federal legal tax return document will greatly increase your chance of audit. *

      *It would be wise to seek another avenue to express your objections or disapproval that does not include

       writing it on your tax return.

So when do you seek professional representation?

Answer…. When you receive that first written communication from IRS informing you there is an issue/conflict with your filed tax documents.

Additional Services of J.B. Moore Tax Resolution Service

  • Annual Tax Return Preparation for any taxpayer
  • Tax return preparation for non-filers
  • Wealth management tax consultation
  • Appeals and Tax Court representation