IRS audit rates fee during the late 90’s, but that appears to be over. IRS audits have doubled during the past 2 years. IRS audits of small corporations increased by 145% from 2004 to 2005. Audits of high income (over $100,000) individuals have doubled since 2001, the highest level in 10 years.
During the late 90’s congressional hearings concerning on overly aggressive IRS audit tactics forced the IRS to adopt a “kinder gentler” attitude. More recently Congress has reawakened the IRS audit giant to increase declining Federal revenue.
“Our number one area of emphasis has been to increase our work in high-income individuals and corporations,” says IRS Commissioner Mark Everson. “We do that because of the sense of fairness that resonates throughout the rest of the system.”
The IRS selects the returns it will audit in 2 ways: First, based on a closely guarded point scoring system which is designed to identify those returns with the highest potential for generating additional tax revenue. And Secondly based on a random selection process. Forewarned is Forearmed. Our optional Audit Representation Protection Plan covers the cost of our representation during the initial audit examination or any correspondence (Federal or Michigan ) for a modest fee. Contact our office for further information.
