Audit Allies by the Numbers

11,234

The number of “watch” letters sent by the IRS to tax preparers on an annual basis.*
These letters warned randomly selected recipients that the IRS was watching their returns and EIC applications with a heightened vigilance for non-compliance. When word of the letters reached others in the tax industry, anxiety over being audited or fined became widespread. Audit Allies offers ERO protection to alleviate this widespread anxiety.

867

The number of in-person EIC due-diligence audits made by the IRS on an annual basis.*
IRS agents questioned practices, interviewed preparers and caused untold anxiety among owners and staff—not only at the offices in question, but throughout the industry when word of the audits spread. Audit Allies provides education & forms designed to head off worrisome audits. Moreover, our experts are available to assist—in person—in the event of an audit.

84%

The percentage of the 867 EIC due-diligence audits that resulted in a fine.*
A staggering figure—especially considering that most of these offices were exercising some degree of due-diligence. With Audit Allies, these offices would have had the information at their disposal to lower their chances of an audit or, at the very least, warrant a potentially lower penalty.

538,562

The number of EIC audits performed on taxpayers on an annual basis.**
EROs rarely have the time, knowledge or resources to devote to satisfying the IRS’s demands for more information following a denied credit.

98%

The percentage of EIC credits with ACTC for which the IRS ultimately denied funding.*
With Audit Allies, whether or not a tax return is funded, we will take on the arduous task of responding to the IRS regarding denied credits. This enables taxpayers to receive their refunds, and tax offices to receive their fees and maintain efficient operations as well as positive client relationships.

Visit our Features pages for more information about how we can help you.

*Treasury Inspector General for Tax Administration Report 2014-40-093 dated September 29, 2014.
**2013 Internal Revenue Service Data Book