Tax Audit Defense
Each year, we see a variety of audit issues, including tax audits, whether carried out by the state or the IRS. Even minor mistakes made by the client or their tax advisor might result in significant liability exposure.
Most audits aren’t random. The IRS and many state taxing authorities have initiatives that focus on specific sorts of taxpayers or concerns. These programs are successful in finding mistakes, but they also put a heavy burden on people who are chosen for audit.
If you’re selected for an audit, it’s important to understand the process and know your rights. The first step is usually a notification from the IRS or state tax agency. This notice will explain the reason for the audit and will request specific documentation.
When it comes to reducing the chance of being audited, taking precautions while preparing your tax return is the greatest method. The IRS is generally looking for something on a tax return, and client difficulties can range from a lack of evidence to technical legal issues to even criminal problems. When it comes to the government’s income tax audit, knowing what the auditor is looking for will help you avoid any problems.
There are a few key things that the IRS (and most state tax auditors) will look for when they’re doing an audit:
- Inaccurate or false information: This is probably the most common reason that people end up being audited. If you accidentally put the wrong number on your return, it’s not a huge deal. But if you deliberately put false information, that’s a different story.
- Not reporting all of your income: The IRS gets copies of 1099s and W-2s, so they know how much money you should have reported on your return. If you don’t report all of it, that’s a red flag.
- Claiming excessive deductions: Everyone wants to maximize their deductions, but if you’re claiming more than is reasonable, that will raise eyebrows.
- Failing to file a return: This one is pretty self-explanatory. If you don’t file a return at all, the IRS is going to come looking for you.
Our firm is highly experienced in navigating clients through income tax investigations, having represented many audit clients in the past. We know how to win in the audit, but we also understand what it means to “win” in the appeals division and beyond if we must litigate an issue.
On behalf of their clients, we aim to avoid prolonged conflicts. We seek to get our clients through their audits as quickly and painlessly as possible. When you find yourself in a position where you need that kind of expertise, however, you will be grateful that you hired an audit defense law firm like ours.
At the end of the day, our firm will fight to defend you and your right to compensation. We can offer a prompt assessment of your worries, a solid defense, and experienced advice on all audit-related difficulties.