IRS Audits: Basics
The IRS conducts audits to collect additional revenue and deter tax fraud. While audit odds remain relatively low, the Inflation Reduction Act of 2022 funds increased scrutiny on taxpayers earning over $400,000 annually.
Civil vs. Criminal Tax Issues
The distinction between civil tax fraud and criminal tax evasion is nuanced. When in doubt, engage a competent tax professional due to the high stakes involved.
Selection Process
Returns are selected primarily through:
DIF Score (Discriminant Index Function) – A secret algorithmic analysis examining:
- Income levels and patterns
- Deduction legitimacy
- Credit eligibility
- Unusual patterns or inconsistencies
Our Expertise
Mark C. Frey brings insider knowledge as a former:
- IRS Internal Revenue Agent
- Field Audit Group Manager
- Civil/Criminal tax case specialist
His credentials include:
- Master of Taxation degree
- U.S. Tax Court admission
- CPA licensure in five states including Florida
- American Bar Association membership
- AICPA membership with tax committee participation