Tax Law/Services

Tax Audit Defenses Provide Closer Look at IRS Audits

IRS Audit Defense Attorney

If you have been approached by the Internal Revenue Service with a notice of audit, one of the first steps you should take is to obtain an IRS Audit Defense Attorney. An audit involves the scrutiny of your personal financial records and may result in severe consequences for you if you are unable to present satisfactory explanation for how you came to own certain assets or how you will pay taxes in the future. An experienced tax lawyer can protect your rights and fight for you in a variety of circumstances. Check out https://www.coloradotaxattorneys.net/irs-audit-defense-loveland-co/ for more details. The IRS audit process begins with a Notice of Examination which will request a variety of financial documents from you which may include bank statements, paystubs, W-2 statements, and tax statements.

 

If you are called to appear at an IRS audit hearing, the first thing the hearing officer will do is review the files that they have requested. The auditor will then instruct an agent to prepare your tax returns for examination. It is important for you to understand that the agents preparing your return are not tax lawyers and cannot give legal advice. They cannot tell you what options may be available to you in light of your current financial circumstances or any potential problems that may be faced as a result of incorrect deductions or omissions on your tax returns.

 

At the conclusion of the audit process, the IRS agent will provide you with a report outlining their findings. In most cases, the auditor will advise you to resolve any errors or claims with the government within a specific time period. This timeframe will usually be two to three years. If the taxpayer refuses to enter into a settlement, the case will be sent back to the auditing unit for follow-up. There are no guarantees when it comes to the outcome of the audit, but hiring a competent and experienced tax lawyer can ensure that you do not lose time or money in the process of defending yourself against an audit claim.

 

In the past, the majority of taxpayers who underwent audits opted to negotiate with the IRS on their own. Unfortunately, many taxpayers found themselves lacking the skills required to effectively negotiate with the IRS. A strong tax attorney should not only be experienced in negotiating with the IRS but should also be familiar with the tax codes as well. The majority of taxpayers are not aware that they are entitled to receive copies of their IRS returns from the Government Accounting Office, and the GOB will not provide them with these forms. When the audit results are disclosed to you, the GOB is required by law to supply you with a copy of the audit determination and supporting documentation.

 

In some cases, taxpayers have discovered that the IRS improperly assessed their taxes. For example, improper claims for deductions may have led to a large refund being improperly withheld. In addition to inappropriately claimed deductions, some taxpayers have found that the Government Accounting Office incorrectly computed their net income figures. Because of this, the Government Accounting Office will not properly calculate the amount of taxes that need to be paid to the IRS. When audited taxpayers try to make these corrections themselves, they often discover that the errors were made due to a lack of proper knowledge or understanding of the complex tax codes.

 

Taxpayers who are subject to an audit are urged to retain a tax audit defense attorney. A tax lawyer can advise how to plead, how to correct errors, and how to make sure that you receive all of the information that is necessary to help you resolve your issue. Many tax audits include a large number of potentially frivolous claims, which will further delay resolution and result in a loss of significant time. A tax audit defense attorney can ensure that you receive an accurate resolution to your issue so that you can avoid further delays and unnecessary expense.