The IRS has developed computerized statistical protocols to identify when a return with potentially incorrect information has been filed. Reporting irregularities are found by comparing information supplied by third parties including financial institutions, individuals, and businesses. When a taxpayer’s return is flagged by the IRS, they will then determine whether they should investigate the matter, which is the purpose of a tax audit. You may receive notice that an IRS agent wants to further examine the records in question. For example, evidence of unreported revenue would immediately garner the attention of an IRS examiner.
All it takes is $10,000 of unreported income during an audit and the auditor may associate a civil fraud advisor into your case. This agent’s sole job is to assist the auditor in developing the audit for potential hand off to the criminal investigation division of the IRS for potential development of the case for criminal tax prosecution.
If you have utilized a check cashing outfit to hide cash receipts, had checks cut to a nominee entity, failed to deposit all cash receipts /skimmed cash, did not report the revenue deposited in all of your bank accounts, reported less income than the sum of your 1099’s indicate you should have, have unreported cryptocurrency revenue of investment gains, deposited unreported revenue in undeclared foreign accounts you are at very high risk of facing criminal tax charges if you do not hire a properly trained Criminal Tax Defense attorney to get you through your eggshell, reverse eggshell audit without facing criminal tax and foreign reporting fraud prosecution or a civil fraud penalty.
Fraudulently inflating deductions or claiming a personal expenses as business expenses, utilizing fictitious payees, and simply not being able to substantiate the expenses you claim will be viewed as badges of fraud in your audit and can lead to criminal tax prosecution.
Fraudulently claiming dependents, earned income credits, business credits, education credits, energy credits etc. is another sure-fire way of drawing an audit or in egregious cases, facing criminal tax exposure.
At the conclusion of any of the above audits, the IRS will come to one of three decisions:
Fortunately, you have located the absolute right choice to hire for legal and accounting representation for an IRS audit. The Tax Law Offices of David W. Klasing have a proven track record of providing successful audit representation for many types of industries, entity types, estates, trusts, businesses, individuals in office audits all over the state of California, the Nation and worldwide for expats and could be indispensable in getting you safely through a civil, Eggshell or Reverse Eggshell, Office Audit. We can protect you from almost everything except the proper amount of tax liability you should have paid in the first place.
Public Contact: Dave Klasing Esq. M.S.-Tax CPA, email@example.com