So, you’ve been audited by the IRS. Approaching your next steps wisely can significantly improve your outcomes.
Some taxpayers feel more confident navigating an IRS audit with a tax attorney on their side, especially if the IRS has accused them of tax evasion or fraud. But for a simpler audit, a lawyer may not be necessary.
Instances in Which You May Need an Audit Lawyer
An IRS tax audit begins when you receive a notice in the mail. Most audits start as paper audits, in which the IRS requests that you mail back additional information about your tax return. You may need to provide evidence of a business expense or charitable donation you listed on your return.
If you can find this information on your own, you probably won’t need an IRS audit lawyer to assist you. But enlisting audit representation may be wise.
You Don’t Have Your Finances in Order
The purpose of a tax return audit is to verify the financial information you included on your tax return. The IRS may suspect that you deducted too many expenses, didn’t report all your income, or rounded figures. It will want evidence showing that the information you included on your tax return is valid.
But supplying this evidence may be challenging if you don’t have your finances in order. You may not have receipts showing your expenses were accurate. Or you may get paid under the table, leaving you with no actual documentation of your income.
If you don’t feel confident in your ability to satisfy the IRS’s queries, a tax attorney can help you. They can sort through all your financial statements and find the information the IRS needs or present another defense, depending on your situation.
Your Audit Involves an In-Person Meeting
After your initial paper audit, the IRS may request to meet with you in person to discuss your tax return. Having a financial professional with you at this meeting can help you avoid saying the wrong thing and ensure you provide the necessary financial information to stop the audit from progressing.
This financial professional could be an IRS audit lawyer, but it could also just be a CPA.
The IRS Has Accused You of a Tax Crime
One strong reason to hire an IRS audit lawyer is to defend you against a tax crime accusation.
If the IRS has accused you of tax evasion or fraud, you may need to go through tax litigation to settle the matter. Tax attorneys have the experience to represent your case in court and clear your name.
Your attorney may also be able to help you avoid litigation altogether. They can provide evidence that the IRS’s accusations are unfounded, that there is insufficient evidence pointing to a tax crime, or that your case has already exceeded the statute of limitations.
Need Assistance From an IRS Audit Lawyer?
Facing an IRS audit can be overwhelming. Hiring a tax attorney could give you peace of mind if you’re stressing about your audit. In cases of tax crime accusations, having an attorney is essential to help you clear your name.
At Levy & Associates Tax Consultants, we have a team of IRS audit lawyers, CPAs, and former IRS revenue officers ready to assist you with the utmost confidentiality and professionalism. Call us today at 800-TAX-LEVY for a free consultation.