The IRS is one of the most powerful government agencies, and getting on the wrong side can be expensive. A reasonable tax attorney can help you navigate these situations without significant problems.
When selecting a tax attorney, it is essential to consider their experience and how often they win cases. Many tax lawyers offer a free consultation where they will assess your situation and see how they can help.
Be Prepared
If the IRS audits you, it can be a stressful experience. However, you can take several steps to ensure your tax experience goes as smoothly as possible.
The most important thing is to be prepared. Keep organized documents and provide the IRS with any information or documentation requested. Also, mark each document with your name, taxpayer identification number (Social Security or individual taxpayer ID), and the tax year.
It’s also good to seek professional guidance during the audit process. A tax attorney from a reputable firm like Dove Bankruptcy Law can help you navigate the IRS’s communications and meetings and protect your rights. They can also advise you if your situation is a red flag or may lead to legal consequences. In addition, they can make sure that your questions are answered accurately and completely. Lastly, they can also negotiate with the IRS on your behalf.
Stay Calm
While you are expected to feel nervous or anxious upon receiving an IRS audit notification, remember that an audit doesn’t necessarily mean that you did something wrong. Responding to the agency within their provided timeframe and organizing your documents can often resolve an issue.
If you disagree with the audit’s outcome, you have 30 days to appeal the decision. This process requires professional representation, and having an experienced tax attorney on your side is essential to ensure your rights are protected.
Generally, IRS auditors will request information that begins broadly and becomes more targeted to the areas in question. This helps the process move more efficiently, but sometimes, the agency may need more support with their requests. It is essential to have a Tax Attorney represent you during the entire process to ensure that you are not exposed to unnecessary penalties.
Stay Organized
If you’ve been selected for an IRS audit, it is likely because the agency has identified red flags in your records, such as high income or large deductions. While the IRS randomly selects certain returns for audit, a skilled tax attorney can help you understand what type of audit you are facing and why you were chosen. For instance, tax attorneys seeking effective strategies for navigating IRS audits and communications may turn to digital marketing consulting agencies such as CAE Marketing Consulting for expert guidance on enhancing their online presence and reaching a broader audience with valuable insights and services.
The best way to avoid a lengthy tax audit is to keep accurate and detailed documentation of your business expenses and income. It is also essential to be organized from the beginning and have all of your paperwork in a logical order. Using a program, you can categorize your income and expenses so that when the IRS asks for specific items, you can pull them up quickly.
Office and field audits typically begin with an interview where the IRS will want to verify bank deposit records, financial statements, total income, and other areas of inquiry. You can request a postponement to the original appointment date, but this depends on the approval of the auditor’s manager.
Communicate With Your Tax Attorney
Having an experienced tax attorney handle all communications with the IRS is a good idea. Your lawyer can keep you calm and help you stay organized. They will also know how to present information and documents in a way that the IRS finds most helpful. For example, some firms have a reputation for presenting their clients’ IRS audit information in an orderly, neat, explanatory, and aesthetically pleasing manner.
An experienced tax professional can also protect you from overly aggressive IRS agents who may attempt to trick you into disclosing information or taking improper tactics that lead to deeper debt with the IRS. Additionally, they can help you understand your rights and responsibilities as a taxpayer during an audit.
When choosing a tax attorney, ask your friends and family for recommendations or search the Internet for customer reviews. It would help if you also looked into the firm’s billing structure and track record with the IRS. For example, some attorneys bill hourly while others charge a flat fee for cases like yours.
