Are you about to receive an IRS Audit?
July 28, 2004
By Jim Harnsberger, Sr. Tax Analyst

SAN DIEGO – With the introduction of the new IRS NRP Audit Program, and the increased focus on taxpayers making more than $100,000 per year, the question is “are you about to receive an IRS audit notice?”

While no person can predict who will or will not become the target of an IRS audit, one thing can be said; the IRS is back in the business of conducting audits; and the numbers are starting to grow. Evidence of this new effort at IRS began to appear early in 2004 and by all appearances, is now well underway with more taxpayers than in recent years, receiving audit examination notices from Uncle Sam.

Especially high on the list are taxpayers who own their own business, taxpayers who earn more than $100,000 per year, and taxpayers who receive certain types of Form 1099 income as independent contractors.Today, representation for an IRS audit in terms of professional fees will vary with a range of between $1500 and as much as $5000 depending upon the issues under examination, and the complex nature of the return. This of course does not include any tax liability, interest or penalty amounts that may be due to the IRS after the audit is completed.

IRS has become more sophisticated in its ability to target suspect returns; identify those taxpayers with questionable deductions; or target those who may fail to report properly all sources of income. With the use of the IMS (Information Matching Systems) a better trained IRS agent, and more integrated use of information technologies, the IRS has an arsenal of tools and resources to use in its efforts aimed at an increase of audits that will continue to grow well into the next several years.

San Diego based Tax Smart America offers business clients, real estate investors, or any person now under an IRS audit FREE AUDIT PROTECTION with NO FEES for representation in an audit. The firm promotes its unique service through an online enrollment at www.TaxSmartAmerica.biz and offers this valuable service to taxpayers willing to have a FREE Audit analysis; FREE refund analysis; and the company provides a valuable FREE audit guide to advise taxpayers of what they might expect during the course of an audit. For more information visit the company at its website or call them at (619) 469-5800 for more information and details.