An IRS audit is an unwanted burden on a taxpayer’s life. It is an intrusion into one’s personal and business life evoking great emotional distress and financial burden. Often, IRS auditors will use aggressive tactics to obtain the specific information needed to help their case.

One of the greatest benefits of hiring a seasoned tax attorney is the taxpayer will not need to be present during the audit preventing them from being put “on the spot” by being forced to answer difficult and invasive questions. The attorney is the shield from the IRS protecting the taxpayer.

Are you being audited by the IRS and struggling with what to do next? Or, are you appealing the results of your current audit? From the start of an audit to its final outcome, the experienced tax lawyer you can rely on with your matters in the Houston metropolitan area is Nicholas Frey, founder of Frey Law Firm. Mr. Frey represents clients in audit and appeals matters before the Internal Revenue Service and state taxing officials.

A taxpayer is chosen by the IRS for audit by using a variety of methods, including:

• Computer Scoring – Some returns are selected for examination on the basis of computer scoring. Computer programs give each return numeric “scores”. The Discriminant 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 some for audit and identifying the items on these returns that are most likely to need review.
• Large Corporations – The IRS examines many large corporate returns annually.
• Information Matching – Some returns are examined because payer reports, such as Forms W-2 from employers or Form 1099 interest statements from banks, do not match the income reported on the tax return.
• 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 examination.
• Other – Area offices may identify returns for examination in connection with local compliance projects. These projects require higher-level management approval and deal with areas such as local compliance initiatives, return preparers or specific market segments.

If you are facing tax issues, Our Firm is Your Solution. Frey Law Firm is here to help you under the guidance of Nicholas Frey. Contact us today for your free initial consultation.