IRS Audit Defense
Tax audits are stressful and time consuming. The IRS often attempts to deny deductions or credits based on imperfect documentation and substantiation. If you receive notice of an IRS audit examination, you should strongly consider hiring tax counsel to protect your rights and minimize any negative impact of the audit exam.
How Do Taxpayers Benefit from Hiring a Tax Attorney?
Taxpayers are best served by hiring a qualified tax attorney to ensure that deductions are preserved and that the tax laws are applied fairly. The IRS revenue agents are required to follow internal IRS rules and procedures to administer a tax audit. A tax attorney can best interpret these complex rules to ensure that the IRS follows the rules and procedures it is bound by when auditing a taxpayer's income, deductions, and credits. Tax attorneys also ensure that the taxpayer does not lose appeal rights and access to the U.S. Tax Court if necessary to preserve a right to appeal. Utilizing a tax attorney's understanding of the process will reduce stress during the audit examination and responding to IRS information requests. Tax attorneys are also effective at limiting the extent and scope of the audit.
How Does the IRS Select Taxpayers for an IRS Audit?
The IRS has different audit programs to enforce the voluntary compliance system. The type of audit can determine if the audit will be contentious or routine. The first type of audit is a random audit, where a taxpayer's return is selected and a full audit of each reported amount, including income, deductions, credits, carryforwards, carrybacks and payments. Another common audit relates to returns that report income, deductions or credits that result from a newly enacted tax law or change in interpretation. The IRS may audit specific items to understand taxpayer reporting tendencies and ensure compliance with the law. The most common audit relates to items that the IRS believes are subject to abuse or misreporting. Highly audited tax returns may include items like the home office deduction, the earned income credit, dependents, business mileage and other business deductions that are likely to be non-deductible personal expenditures. In these cases, the IRS is looking to correct underreporting and increase tax revenues for the Treasury.
Contact Steiger Tax Law for IRS Tax Audit Help
If the IRS has notified you of an audit of your personal or business tax returns, contact tax attorney Andrew Steiger at Steiger Tax Law to protect your rights and defend you against the IRS. Failure to respond to a request to an IRS audit exam notice can jeopardize your rights and deny you valuable appeal rights. Call today for a free consultation at (248) 259-6367.