The IRS has special groups designed for the audit of certain industry segments that they feel deserve special scrutiny. Many of the attorney segments were formed in 1995 and 1996. It addresses a wide variety of items, including how returns are identified, record keeping, pre-audit analysis, audit of gross income and expenses, employment tax issues, and how to conduct an interview with an attorney. Audits of other individuals, third party information, and public records, such as disciplinary actions, magazines, periodicals and other media will be used as leads for audits.
Sole proprietorships are at a greater risk for selection.
High income attorneys who file late tax returns may also be increasing their audit risk. The auditor will conduct a pre-audit analysis. These searches may show a higher economic standing than has been disclosed. Bartering transactions may also be uncovered. Court Records of divorces can be especially useful because of the financial information filed with the court.