Many people aren’t very familiar with what audit defense entails since they don’t need to enlist it very often. If you do get audited by the IRS, though, there are several terms that you will need to know in order to understand what the IRS is doing and how an attorney can best help you attain tax resolution.
- Open Tax Year: An open tax year is basically a tax year that can still be opened and questioned by the IRS. There is a statue of limitations on how long a tax year may remain open, which is usually three years, but there are exceptions to that rule. For instance, if the IRS begins an audit process at any point, or determines there is a problem, such as underreporting income by one fourth or more, the statute is often extended to six years. Many state income tax agencies will have a statue of four years.
- Audit Defense: To ensure that you get the best defense and results possible from your tax help, you need to enlist help from a qualified attorney as soon as possible. Once you receive an audit notice, make sure you call an attorney or organization within five days, so you can begin examining your case and planning your defense as soon as possible.
- Representation: It is important to use the correct verbiage when speaking to the IRS, to ensure that things go smoothly. For instance, if they call you, inform them of who is representing you, and they will contact us or your other representation. If you phrase it in a manner that is milder and seems less savvy, they may push you.