If you’ve received a letter from the IRS requesting information, then you may be the target of an audit. Depending on the severity, you may receive multiple letters from the IRS containing red flags. It’s vital to contact an irs audit attorney – tax lawyer as soon as possible. You may also receive a phone call if you’re under investigation. Usually, an audit starts with a single tax year, but can grow over the years.
While there are many reasons for IRS audits, certain categories of taxpayers are more vulnerable to an audit than others. For example, self-employed taxpayers, those with foreign bank accounts, and taxpayers who make disproportionately high charitable contributions are likely to be targets of audits. In such cases, it’s best to work with a real tax attorney with years of experience. An attorney who specializes in tax audits should know the ins and outs of local, state, and federal file requirements and can help you protect your financial interests and avoid additional taxes and penalties.
If the IRS does agree to an additional tax amount, you can negotiate a settlement with them. In some cases, an appeal is your best option, although there are certain requirements. The IRS is legally required to allow a taxpayer to settle a tax dispute for 80% or more of what they owe. However, a skilled tax attorney will help you formulate an appeal strategy, which will maximize your chances of winning the case.
While an audit may not be serious enough to warrant a criminal investigation, you still have legal rights. An IRS tax audit attorney can protect your interests in a stressful situation. Having someone on your side can make the process run more smoothly and efficiently. As long as you don’t agree with the IRS’s request, the IRS will rarely be able to take advantage of it. So, hire an IRS audit attorney – tax lawyer to protect your rights.
Hiring a tax lawyer to represent you in an audit may help you avoid a major mistake that could cost you thousands of dollars in the long run. The IRS can open up many other years if the representation is not experienced enough. An experienced tax attorney can limit the scope of the audit and identify problems with your return. A skilled tax attorney can also negotiate a reduced tax liability. A tax lawyer is able to limit the scope of the audit, ensuring that it is only relevant to your current tax return.
An experienced tax lawyer will have knowledge of IRS red flags and can provide the best legal defense for you. He will know what to do and not do, and he or she will keep you informed throughout the whole process. A tax lawyer should have the appropriate licenses, which means he or she can represent you in an audit. A tax lawyer’s expertise in tax law will also be beneficial if your state is involved in the audit.
While you’re under an IRS audit, you can appeal. If you disagree with the findings of the audit, you can take your case to appeal mediation. Depending on your situation, the IRS may drop a tax penalty entirely if you can prove that you made an honest mistake. If they find that you didn’t pay taxes at all, they may not penalize you as much as you initially thought.
Whether you need an IRS audit attorney – tax lawyer is largely dependent on the amount of money at stake and the complexity of the issue. A simple problem like a discrepancy between your information return and your tax return might not require a professional’s assistance, but if it is a larger issue, it’s recommended that you retain the services of a qualified tax attorney. You should also take note of the importance of attorney-client privilege in a tax audit.
Your Fifth Amendment privilege applies in situations where you have attempted to evade taxes. This privilege protects you from having your information used against you. You may also be able to invoke the Fifth Amendment privilege in a situation where the IRS is investigating your finances for criminal activity. An attorney can help you assert your Fifth Amendment privilege and avoid further complications with the IRS. But there are many circumstances in which you will need the services of an IRS audit attorney – tax lawyer.
The IRS typically conducts correspondence audits, which require you to provide documents in response to letters it has sent. It is illegal to refuse to comply with an IRS audit, but your attorney can help you navigate this process. He or she will know what documents the IRS will need to verify your taxes. A tax attorney will be able to protect your rights as a taxpayer and pursue appeals when necessary. A tax attorney will also have the knowledge and expertise to handle the many nuances that accompany an audit.