Federal Tax Audit Excellence
Facing the Internal Revenue Service requires more than just accounting; it requires a legal shield. Whether you are facing a Correspondence Audit, an Office Audit, or a high-pressure Field Audit, the IRS’s goal is to find non-compliance and assess maximum penalties.
Our Attorney-CPA Advantage ensures that your audit is handled with both legal privilege and mathematical precision. We act as your dedicated buffer, managing all IRS Revenue Agent communications so you never have to speak with the government directly.
From defending unreported income allegations to justifying complex business deductions, we fight to close your case with the lowest possible tax liability—or a "no-change" letter.
Thomas F. DiLullo, Esq., CPA
IRS Tax Audit FAQ
Why was my federal return selected for an IRS audit?
The IRS uses several methods, including the Discriminant Inventory Function (DIF) score, which flags returns with "out of the norm" deductions. Other triggers include 1099/W-2 mismatches, large cash transactions, or participation in what the IRS deems "abusive" tax shelters.
What is the danger of a "Field Audit"?
A Field Audit is the most serious type of IRS review, where an agent visits your home or place of business. This allows them to observe your lifestyle or operations firsthand to look for "signs of wealth" that don't match your reported income. We generally move these audits to our offices to protect your privacy.
Can the IRS audit my bank accounts?
Yes. If the IRS believes your records are incomplete, they may use Bank Deposit Analysis to assume every deposit into your account is taxable income unless you can prove otherwise. We specialize in reconstructing financials to disprove these assumptions.
What are my rights during an IRS audit?
You have the right to professional representation, the right to appeal findings, and the Right to Confidentiality. By hiring an Attorney-CPA, your communications are often protected by Attorney-Client Privilege, a protection that standard CPAs or Enrolled Agents cannot offer.
How far back can the IRS go?
Generally, the IRS audits returns filed within the last three years. However, if they identify a "substantial understatement" of income (25% or more), they can go back six years. If they suspect fraud, there is no time limit.