Although it’s not the end of the world, being subject to an IRS audit can seem burdensome. To increase the probability of a better outcome and surely acquire peace of mind, you can have a tax attorney-CPA-IRS EA, Will Harmon, represent you throughout the Audit. In addition to being a tax expert, Will has an audit background. Call him today at 772-418-0949 or complete the online inquiry form.

Being selected for an IRS audit can often leave one guessing about the outcome and what may have caused it. To help relieve the stress of the Audit, it’s a good idea to take the perspective that the IRS is impersonal with its audit selection and that the IRS’s sole mission is to collect money. If you follow the process, it will go much smoother. It often helps if you obtain help from a tax professional used to dealing with IRS and has a good understanding of tax audits.

What Is an IRS Audit?

The primary purpose of an IRS audit is to ensure that you have correctly filed your tax return and remitted the correct tax payment for a particular year. The IRS facilitates an audit by having its auditors perform an investigative analysis of your financial records to determine whether the tax laws have been appropriately followed on your tax returns. Again, cooperation with the auditor’s information request should help the audit process go smoothly.

Being selected for an IRS audit is not a guaranteed indictment indicating that you broke the law. It is essential to determine the reasons for the Audit to plan for it properly. Here are some typical reasons why the IRS may pull a tax return for Audit:

• File a return with math errors
• Randomly selected from the general tax return population.
• Home Office deductions taken
• Run a cash-heavy business
• Make significant earnings
• Rounding numbers on expense listings
• Have substantial changes in income or expenses
• Taken certain credits which are more heavily audited, such as EIC.
• Use of personal vehicle for business

Provided there was no intentional significant omission, flagrant gross understatement, or overstatement of items listed on the return, most IRS audits often turn out well. You may owe some tax if you inadvertently omitted something from the tax return, but this does not mean it was intentional, and you will get into legal trouble.

How Does the IRS Notify of an Audit?

The IRS will notify you by mail. The IRS will not initiate an audit by telephone.

How Far Back Does the IRS Go to Audit Tax Returns?

Typically, the IRS only audits tax returns filed within the last three years. However, if a substantial error indicates an omission of 25% or more of gross income on the tax return, the IRS may go back six years. If the IRS has determined that a false or fraudulent return with the intent to evade tax has taken place, the IRS has unlimited time to go back and audit a return.

Generally, the IRS seeks to audit tax returns as close to the filing date as possible. Audits of returns filed within the last two years are the norm.

What Happens During An IRS Audit?

An IRS audit begins with a mailed notice of the pending Audit. They may be conducted either in person or by mail correspondence. An in-person audit will occur at your home, business, or IRS field office. Whereas an IRS mail correspondence audit strictly relies on your sending in the requested IRS documents by mail, fax, and in some cases, by email. You may request an in-person audit if you believe there is too much information to send in by mail.

The information generally sought during an IRS audit are documents that could substantiate your income and expense claims or support credits sought.

How Can a Tax Attorney-CPA-EA Help You with an IRS Audit?

Your tax attorney-CPA-EA will provide proper guidance in gathering and presenting information to auditors and ensure you completely understand the Audit. They will deal directly with the IRS. More vitally, the tax attorney-CPA-EA can ensure your taxpayer rights are not disregarded.

Here are your taxpayer rights to bear in mind during an IRS audit:

• The Right to Be Informed
  • Clear explanations of outcomes and how to comply
• The Right to Quality Service
  • Treated professionally and could speak to a supervisor if needed
• The Right to Pay No More than the Correct Amount of Tax
  • Only pay the amount legally due along with proper payment allocation
• The Right to Challenge the IRS’s Position and Be Heard
  • Raise objections and provide additional information.
• The Right To Appeal an IRS Decision in an Independent Forum
  • Either within the IRS’s system of appeals or through the courts
• The Right to Finality
  • Know the maximum time to challenge IRS and the time IRS has to audit a particular tax year.
• The Right to Privacy
  • IRS will be no more intrusive than necessary and abide by due process, and search and seizure protections apply.
• The Right to Confidentiality
  • Disclosures only authorized by the taxpayer or by law
• The Right to Retain Representation
  • Retain authorized representatives of their choice
• The Right to a Fair and Just Tax System
  • Expect facts and circumstances to be considered in their situation. Right to Taxpayer Advocate service to resolve difficulties.

Contact us today if your rights are disregarded or require IRS audit help.

What If I End Owing Taxes from the Audit and Cannot Pay them Immediately?

If it turns out that the audit results indicate that you end up owing the IRS and cannot make full payment on the debt, there may be some payment options available for you. The IRS has a Fresh Start Initiative, which began in 2011 and provides various tax debt resolutions. Depending upon your circumstances, you may be eligible for one of the following:

• Installment agreement plans
• Partial Pay Installment Agreement
• Offer In Compromise
• Currently Not Collectible Status
• Innocent Spouse Relief
• Penalty Abatement

It may be prudent to seek help from a tax attorney-CPA to see if you qualify for any tax debt resolution options.

Can I Appeal the Audit Findings?

Yes, the IRS auditor’s decisions are not unchangeable; you can appeal the decision if it is incorrect or unjustifiable.

Sadly, taxpayers’ right to appeal adverse decisions is not always readily known. IRS is not in the habit of promoting this because it could inhibit their ability to collect as much money as possible. In addition, if you are not aware of your appeal rights early on, it can be challenging to engage in an appeal. If you are going alone at this without a seasoned tax professional, it can become pretty convoluted since you are dealing with timing issues along with multiple form preparations. In addition, without a strong tax background, you may miss incorrect audit findings altogether. There have been many instances where incorrect audit findings go unchallenged, resulting in the taxpayer footing a large wrong tax debt causing significant harm to themselves and their families.

In addition, you also have the option to seek audit reconsideration if new information becomes available or a ruling has an incorrect application.

Trusted tax resolution professionals have gone through the IRS audit and appeals process many times, therefore, can do so for you efficiently and effectively. Working with them, they will address many of the nuances involved, so you don’t have to.

Contact a Tax Attorney-CPA-EA for IRS Audit Help

Being selected for an IRS audit can be a stressful experience, but it is essential to remain relaxed and take prudent steps to address the situation before it is too late. Employing a professional tax expert to review your tax returns to ensure they are in good order, to help you gather all necessary records, to provide the correct trail for IRS auditors to follow, and to ensure your taxpayer rights are protected.

You are not alone if you still feel nervous about taking on the IRS since this is a typical reaction of most taxpayers going through a similar experience. Employing tax attorney-CPA-EA, Will Harmon, can help alleviate your audit discomfort because not only will he look out for your best interest, but due to his multifaceted background and experience, all audit elements are assured to be fully addressed. As a CPA, Will Harmon is an experienced auditor who will ensure proper audit guidance and reporting. As an Enrolled Agent – the IRS gold standard for tax knowledge, he will properly review and analyze the merits of your tax position to ensure appropriate action occurs. As a tax attorney, Will will protect your rights and provide proper advocacy. He understands the fears you may be experiencing, and with his vast skillsets at your disposal, you are assured he will do everything possible to alleviate them.

To avoid overpaying the IRS and getting your control back, contact tax attorney CPA EA Will Harmon for a free consultation by calling him today at 772-418-0949 or completing the online questionnaire. Let him get you back on track to tax compliance!

Trusted, Dependable, Knowledgable, and Affordable Representation!

For additional information, please see the following blog articles:

• “Help with Your IRS Tax Audit“
• “The Ins and Outs About IRS Audit Reconsideration“
• “When Should I Call A Tax Resolution Firm?“
• “You Have Been Selected for an IRS Audit. Now What?”

Make the Call Today So That Your IRS Audit Is Smooth Sailing!

Opening your mail only to discover you are on receiving end of an IRS Audit is a daunting experience; however, if you keep your wits about yourself and follow specific steps, the immensity of the ordeal will lessen significantly. Invariably, we all must deal with the IRS at some point.

Here are some steps to follow to help get through an IRS audit engagement.

Step 1: Determine The Reasons for The Audit

The first step is to get an understanding as to why the IRS is auditing you. The IRS audit letter typically details the periods being audited and the type of audit to be performed. There are many reasons the IRS may select a specific tax return for audit; for example, third-party reporting does not match data reported on tax returns or data within the tax returns, such as amounts listed for various income or expense items falling outside the typical industry average. You could have the unfortunate luck of being randomly selected out of the general tax return populous. Although not an all-inclusive list, there is a greater chance of being audited if you find yourself in any of these situations.

1. Make Significant Earnings
   1. Once you cross the $200,000 earnings threshold, your chances of audit increase. Around 50% of the tax returns audited by the IRS have annual earnings of over a million dollars.
2. Run a Cash Heavy Business
   1. IRS targets these types of businesses because, within these types of businesses, there has been a greater propensity for not reporting or under-reporting income to occur.
3. Taking Home Office Deduction
   1. You can take certain deductions if you work exclusively from home and have an area dedicated to your business. Since this can be manipulated, the IRS tends to request verification.
4. Claiming Earned Income Credit (EIC)
   1. EIC reporting has had significant fraudulent reporting; therefore IRS scrutinizes this heavily.
5. Rounding Numbers on Expense Listings
   1. IRS may consider this an indication that actual data is not being used to support the expense.
6. Have Significant Changes in Income or Expenses
   1. IRS may want to understand why and how these changes occurred.
7. Use of Personal Vehicle for Business
   1. Reported vehicle expenses are an area where many discrepancies occur. Be sure to keep records such as mileage logs can calendar entries that indicate the business purpose of the trip.
8. File a Return with Math Errors
   1. These errors generally get caught, flagging your return for audit.
9. Crypto Currency Transactions
   1. There is still considerable standardization needed here, resulting in the IRS making an enhanced effort to get more verification.

Having any of these occurrences does not guarantee that an IRS audit will occur, except the likelihood of one increases. Taking expense deductions and credits you are entitled to and can substantiate with proper record keeping will help reduce the chances of being selected. However, sometimes IRS audits are random, so even with a correctly prepared return that does not contain typical audit flags, you may still receive an IRS notice “requesting” you to explain some items on your tax return. In either case, having detailed records will help tremendously if an audit occurs.

Step 2: Do a Thorough Review of Your Tax Return

Before meeting with your trusted tax professional or an IRS agent, it’s imperative to thoroughly review the tax return being audited and the last several years of prior tax returns to ensure completeness and accuracy. With all the many inputs required to complete a tax return, unintentional mistakes can easily happen, whether during the preparation or e-filing process. Doing a thorough review will help catch any of these mistakes, and you will be better prepared to plan and discuss. The better prepared you become, the less anxiety you will experience during the audit. To help better prepare for the audit, gather proper support for items listed on the tax return, such as bank and credit card statements, receipts, invoices, and 3rd party annual reporting documents such as 1099s. By being prepared in this fashion, the audit will move quicker and with fewer challenges.

Getting Trusted Professional Help

Since dealing with an IRS audit can be extremely stressful and frustrating, it may be highly advantageous to consult with a tax professional, such as a dually licensed Tax Attorney-CPA, who can represent you in front of the IRS while providing the correct course of action. The benefits of employing such a tax professional allow one to leverage the tax professional’s years of experience and expertise in dealing with sophisticated tax situations that the typical taxpayer would not possess.

An experienced tax resolution attorney-CPA will provide, from start to finish, all tax law expertise and proper advocation, along with expert CPA audit guidance, which helps ensure that you will not end up paying more than you must.

What is a Tax Resolution Attorney-CPA-EA?

A tax resolution attorney-CPA-EA is a combined legal, tax, and accounting professional helping individuals and businesses resolve their IRS tax-related issues. Because a tax resolution attorney-CPA-EA has gone through extensive multi-licensing, cross-training, and continued education, tax resolution attorney-CPA-EAs have a more in-depth knowledge of tax law than anyone in the business. Plus, dealing with IRS on a day-to-day basis enables the tax resolution attorney-CPA-EA to properly assess and appropriately address each tax situation, regardless of complexity, with IRS representatives ensuring the engagement proceeds in the best manner possible.

A multi-licensed tax attorney-CPA-EA thoroughly understands tax regulations, laws, accounting, and audit procedures and is there to provide acute guidance and complete representation to taxpayers across the spectrum of varying IRS issues. A tax resolution could include preparing unfiled returns, finding the best resolution for back tax debt, addressing an IRS audit, properly dealing with an IRS tax lien or levy, and appealing an IRS position. Tax resolution attorney-CPA-EAs work on your behalf to negotiate IRS settlements or payment plans. They can also provide expert tax planning strategies to help you prevent future IRS tax issues. Often tax resolution cases involve various disciplines to address the problem adequately. By having a three-in-one tax professional work on your case, you are ensuring nothing gets overlooked.

Step 3: Immediately Respond to the Audit Notice

Response timing to an IRS audit notice is critical. The IRS generally gives you thirty days to respond but verify by locating the “Respond by Date” listed within the notice. The timely response sets a good tone with the IRS and avoids additional interest and penalties getting tacked on. Untimely responses can also trigger a more aggressive approach from the IRS. IRS audits tend to go much smoother when timeliness occurs.

Step 4: Show Up at the IRS Audit Appointment

If attendance is mandatory for your audit appointment, whether in person or via video conference, it is essential to your case to show up on time and well prepared. Proper time scheduling will help alleviate significant stress and enhance your ability to field questions. The whole process goes much smoother this way and helps avoid additional escalation.

Just like prompt attendance facilitates a better speedier audit, so would ensuring you have acquired all necessary documents. Starting on this as early as possible is the best way to handle this. In addition, if more time is needed to acquire documents, you can request additional time by calling the number listed on your audit notice. Waiting until the last minute to make such a request could result in it getting denied. Importantly, giving yourself enough time to review your data may prove your position was correct and the IRS was wrong. The last thing anyone wants to pay is a tax they should not owe.

Be Straight Forward with the IRS Auditor

Transparency goes a long way when working with your IRS agent. Like other government enforcement agencies, the IRS agent’s primary focus is maintaining guidelines, regulations, and laws. Mistruths will often cause additional audit requirements added to the audit, delays, and combativeness from IRS agents. Providing mistruths could lead to a criminal investigation. Being transparent is a best practice and will make the audit much smoother than being untruthful or evasive.

Maintain Good Financial Records

Good financial record-keeping is an excellent way to avert many tax problems. However, even with proper financial records, you can still incur an IRS audit due to many factors previously listed. Incorporating solid financial recordings, especially ensuring banking records match reports correctly, will help establish your position well and provide significant evidence to counter underreporting or misappropriation of funds.

The greater your personal or business income, the greater the possibility of being audited by the IRS. A higher income often involves more transactions, resulting in complex tracking challenges, hence the need for solid financial reporting. If you are self-employed or own a business with inherent IRS audit risk factors, keeping good business records can alleviate audit headaches and could even prevent an audit from occurring. When it comes to financial record keeping, it’s essential to ensure you are employing enough resources for this task, just like hiring a multi-licensed tax attorney will provide adequate coverage in all facets of an IRS audit. There is nothing like having a knowledgeable legal tax professional who also happens to have the audit and financial reporting background of a CPA.

Make Sure to Know Your Rights!

If you are being audited, know your rights throughout the audit, including the right to appeal the auditor’s findings and the right to representation. Employing your legal rights can significantly determine the outcome.

Unfortunately, unless you are dealing with the IRS regularly, along with having years of schooling and specific training, you most likely will not have a sufficient understanding of your rights and responsibilities relating to IRS actions, such as an audit. It may be prudent to employ an experienced tax professional capable of navigating the extreme complexities of dealing with the IRS. Dually licensed Tax attorneys-CPAs have significant experience and the ability to see your situation from every angle to ensure the best solution will be employed to protect your and your family’s rights. IRS Taxpayer Rights and IRS Publication.

Can I Appeal the Audit Findings?

Yes, the IRS auditor’s decisions are not unchangeable; you can appeal the decision if it is incorrect or unjustifiable.

Sadly, taxpayers’ right to appeal adverse decisions is not always readily known. IRS is not in the habit of promoting this because it could inhibit their ability to collect as much money as possible. In addition, if you are not aware of your appeal rights early on, it can be challenging to engage in an appeal. If you are going alone at this without a seasoned tax professional, it can become pretty convoluted since you are dealing with timing issues along with multiple form preparations. In addition, without a strong tax background, you may miss incorrect audit findings altogether. There have been many instances where incorrect audit findings go unchallenged, resulting in the taxpayer footing a large wrong tax debt causing significant harm to themselves and their families.

In addition, you also have the option to seek audit reconsideration if new information becomes available or a ruling has an incorrect application.

Trusted tax resolution professionals have gone through the IRS audit and appeals process many times, therefore, can do so for you efficiently and effectively. Working with them, they will address many of the nuances involved, so you don’t have to.

Step 5: Get Trusted Representation by Calling Will Harmon Now! 772-418-0949

​Being selected for an IRS audit can be a stressful experience, but it is essential to remain relaxed and take prudent steps to address the situation before it is too late. Employing professional tax advice to solidify and enact correct application audit rules and procedures and keeping meticulous records will provide the best path for the most successful audit outcome.

You are not alone if you still feel nervous about taking on the IRS since this is a typical reaction of most taxpayers going through a similar experience. Employing a trusted attorney-CPA-EA to help you in your IRS tax audit case can significantly increase your chances of success. Will Harmon, one of the best tax resolution attorneys-CPA-EAs in the business, can help you with your IRS issue. If you want to be sure of not overpaying the IRS and getting control back, give tax attorney CPA EA Will Harmon a free consultation call today or complete the online questionnaire and let him get you back on track to tax compliance!

For additional information, please see the following blog articles:

• “Help with Your IRS Tax Audit“

• “The Ins and Outs About IRS Audit Reconsideration“

• “When Should I Call A Tax Resolution Firm?“

Going through an IRS audit can be exhausting, especially if you receive an unfavorable outcome resulting in a tax balance due to the IRS. Before capitulating and forking over the money to the IRS, you may have the option to challenge some or all of the audit findings using an IRS Audit Reconsideration. An Audit Reconsideration is a process the IRS uses to reevaluate the results of a prior audit when specific criteria have been met.

When Can I Use An IRS Audit Reconsideration?

The IRS offers an Audit Reconsideration process if you disagree with the audit results of your tax return. The Audit Reconsideration allows you to provide your explanation as to why you feel it should be overturned. Here are some of the reasons you could request an audit reconsideration:

• You disagree with the audit assessment findings and can provide a reasonable basis for the dispute. You must clearly state which part of the audit you are disputing and why. For example, the audit incorrectly classified income or expense characterizations.
• You have additional pertinent information not presented during the audit. You have new information to show the IRS about the audit of your income or expenses. For example, an audit denied an expense due to lacking supporting documents; you acquired them after the audit.
• You didn’t appear for your audit due to a legitimate reason.
• You relocated and never got the IRS’s audit report.

When Am I Not Able To Use An IRS Audit Reconsideration Process?

• You’ve already paid the full amount you owe. In that case, you must file a formal claim for a refund with an IRS Form 1040X, Amended U.S. Individual Income Tax Return.
• You previously agreed to pay the amount you owe by signing an agreement such as an IRS Form 906, Closing Agreement; an offer in compromise agreement; or an agreement on IRS Form 870-AD, Offer to Waive Restrictions on Assessment and Collection of Tax Deficiency and to Accept Overassessment, with the Office of Appeals.
• The United States Tax Court or another court has entered a final determination that you owe the taxes.

How Do I Apply For An IRS Audit Reconsideration?

An Audit Reconsideration is done by making a written request to the appropriate IRS office listed on your audit report. If you are unsure where to send it, please refer to IRS publication 3598, which lists the addresses and phone numbers of all IRS offices dealing with audit reconsiderations. The publication also provides information about materials you must submit with your request.

Steps For Submitting An IRS Audit Reconsideration Request

Step 1: Acquire Appropriate Documentation

Analyze your audit report to determine the disagreeable items you are contending. You will then need to obtain new information not already previously provided to IRS, which supports your position. Ensure this information is relevant to the tax year listed in the audit report. Please present a clear audit trail of source documents to each audit report listing you are disputing.

Step 2: Submit Your Documentation

You will need to submit to the IRS the following items:

• A copy of your audit report (IRS Form 4549).
• Copies of information that support your position (typically, these are payment receipts, canceled checks, bank and credit card statements, invoices, contracts, loan documents, and 1099 Forms).
• Copies of materials you previously gave to the IRS – usually listed within Information Document Request 4797 sent to you.
• A letter clearly stating your reason for reconsideration; the IRS suggests using IRS Form 12661, Disputed Issue Verification.
• Include daytime and evening phone numbers and the best time for IRS to call you.

Remember to make photocopies of all documents you are sending. Please do not send the originals since the IRS will not accept them and may reject your request for audit reconsideration if you attach them.

How to Write an Audit Reconsideration Letter

You can write a letter to request an IRS Audit Reconsideration rather than completing IRS Form 12661. Sometimes this is chosen if it makes it easier to state one’s position in this fashion over using the IRS form 12661. The letter must provide the reason for requesting the audit reconsideration and an overview of the additional information explaining how the audit findings are inaccurate.

Because IRS Audit reconsiderations are relatively complex, having a tax attorney with an audit background would be ideal for assisting you with the best way to handle your appeal. Tax Attorney, Will Harmon of Harmon Tax Resolution, is also a CPA with significant audit experience and can adequately address this for you.

What Is The Time Frame For An IRS Audit Reconsideration Completion?

Typically, the IRS will contact you within thirty days of receiving the Audit Reconsideration request; however, it’s unsurprising if it took up a couple of months before they do. During this period, penalties and interest and penalties continue to accrue on unpaid tax balances. The IRS may delay collection activity during their investigation based on your request, but this is not guaranteed. If you are under an installment plan, you will want to continue making payments. If you are experiencing financial difficulties with paying your IRS debts, there may be some tax relief programs you possibly qualify for. Seeking a tax attorney-CPA to assist would be helpful for your situation.

If the IRS needs additional information to assist with their determination, they will contact you via mail. Bear in mind that if you were able to have collections halted during the reconsideration process and the IRS finds that if you don’t respond to additional information requests within thirty days or have submitted insufficient information, the IRS may resume its collection activities.

To help move your case forward, you can also contact the Taxpayer Advocate’s Office and ask them to expedite your audit reconsideration case. This can be done by completing Form 911, Request for Taxpayer Advocate Assistance.

What Happens Upon The Completion Of An Audit Reconsideration?

Shortly after the IRS completes its review of your audit reconsideration, you will be contacted with their decision which could result in a complete or partial reduction of the contested items’ original tax. If the IRS makes no adjustments, the original balance will remain due.

Do I Have Any Options To Challenge The Audit Reconsideration Ruling?

If you disagree with the results of the reconsideration, there are several options:

• Request an Appeals Conference,
• Pay the amount due in full and file a formal claim, or
• Do nothing. IRS will send you a bill for the amount due.

Some tax relief options may be available if you have problems paying the IRS tax debt.

Get Trusted Legal Representation for Dealing with IRS Audit Reconsideration

To ensure that you align yourself with the best possible outcome, whether dealing with a challenging IRS audit/assessment or seeking tax debt relief, have an experienced tax attorney-CPA-EA provide the expert guidance to get you there. Call today (772-418-0949), or complete an online inquiry form for a free consultation with experienced IRS Audit Reconsideration Tax Attorney-CPA-EA, Will Harmon of Harmon Tax Resolution, LLC. He will handle your audit reconsideration and any other IRS issue so that you can put this behind you and get on to doing the things that matter most.

For additional information, please see the following blog articles:

• “Help with Your IRS Tax Audit“

• “When You Can Pursue a Collection Due Process Hearing“

• “When Should I Call A Tax Resolution Firm?“

Although it’s not the end of the world, being subject to an IRS audit can seem somewhat burdensome and, to some degree, downright scary. To increase the probability of a better outcome and acquire peace of mind, you can have a tax attorney-CPA-IRS EA, Will Harmon (Will), to represent you throughout the audit. In addition to being a tax expert, Will has an audit background.

If you are selected for an IRS audit, it may leave you wondering about the outcome and why the IRS is choosing you. You may then wonder if there are errors on your tax returns and, if so, how this will impact you. For most people, no matter what brought about the audit, the idea of being audited is not pleasant. Even with this unpleasantry, it is imperative to put this into perspective.

Recognizing that the IRS focuses on collecting money versus going after you is critical. It is the overall process that needs to be addressed. The IRS is looking for mistakes and will most likely find them if they exist on your tax returns. The Internal Revenue Code (IRC) is where most tax law comes from and is used to determine the correct tax application to follow for tax returns. However, the IRS must follow procedural guidelines when enforcing the IRC framework. These procedural guidelines are listed within the Internal Revenue Manual (IRM). The IRM is the IRS’s playbook. Having a working knowledge of the IRM is highly beneficial since you will know exactly where everything falls. Therefore, a tax attorney, CPA-IRS EA, who is very familiar with the IRC & IRM, representing you and your rights during the process is an excellent way to protect yourself during this strenuous time.

What Happens During an IRS Audit?

The purpose of an IRS audit is to confirm that you have correctly prepared your tax returns following tax laws and paying the correct tax owed. The auditors verify your tax data by going through supporting financial records. They will trace and vouch for information in addition to performing tax calculations. The audit itself will generally go well if you provide the auditors with timely and complete information when requested.

There are various reasons the IRS may choose to audit your tax returns, and it does not necessarily mean the IRS suspects foul play on your part. There are many factors the IRS uses for selection purposes, and not all are from “flagged” items, which occur when potential discrepancies such as excessive write-offs compared with income, unreported earnings, refundable tax credits, and other items which the reported amounts fall outside out of normal range for that type. In addition, the IRS automatically audits a portion of the taxpaying public every year who were selected purely as a matter of chance based on IRS random selection software.

Generally, most people emerge from IRS audits okay. In some cases, it will be discovered that the reported tax returns need to be revised, resulting in additional taxes due.

How Does the IRS Facilitate an Audit?

It will start with the IRS contacting you through the mail regarding an upcoming audit and how it will be facilitated, along with the required information. There are several methods they could choose from to conduct the audit, either by mail or in person.

If the IRS requests it by mail, you will need to mail the IRS-requested documents to an address specified on the request. Typically, these documents include income records, proof of other expenses, and itemized deductions. If you feel there are too many documents to send in the mail, you can request an in-person audit.

An IRS in-person audit could occur at several locations, either at your home or business or at an IRS field office.

How May a Tax Attorney CPA Assist You with an IRS Audit?

Your tax attorney-CPA will assist throughout the audit by gathering requested information and helping you understand all the audit components. Your attorney will seek to ensure that your taxpayer rights are not overlooked.

Here are some fundamental taxpayer rights to keep in mind during an IRS audit:

• The right to representation. A CPA, EA, or an Attorney can represent you in front of the IRS.
• The right to understand why you’re being audited, the purpose the IRS uses the information for, and the ramifications of failing to provide the requested information.
• The right to be treated professionally by IRS workers.
• The right to confidentiality and privacy about your tax matters.
• The right to appeal any IRS decisions you disagree with, either within the IRS’s system of appeals or through the courts.

If your rights have been infringed upon in any way or you need assistance with your IRS audit, give Harmon Resolution, LLC a call Today.

Have a Tax Lawyer CPA Provide Vital IRS Audit Assistance

Arming yourself with a CPA-IRS EA who is a trained auditor and expert in business reporting will help you with your IRS tax audit facilitation and provide a correct review of your income tax returns. Combine this with having an attorney to ensure your rights are being looked after, and you will be less stressed knowing that you have covered all your bases.

Your attorney CPA-IRS EA will assist you in gathering all the required information the IRS seeks. You will not be alone and won’t feel so nervous because you will have a tax expert guiding you throughout this process.

Set up a free consultation with a tax attorney CPA-IRS EA, Will Harmon, from Harmon Tax Resolution, LLC. He understands the fears you’re experiencing and will do everything possible to alleviate them. Call Today, and sleep well tonight!

For many, dealing with the IRS can invoke significant stress, especially when one has received a notice of an impending audit. Should I lawyer up? This may be the first reaction; however, in many instances, this is not necessary.

When you get an IRS notification, you should first take a deep breath and relax so that you can constructively interpret what the IRS notification pertains to, along with its gravity. For example, you may receive an audit notification due to a random selection technique and not based on anything you did or reported. Or maybe the audit was triggered due to a simple omission or miscalculation of reported tax return items. Once you or your accountant have reviewed it, you can remedy and explain as needed. As a tax lawyer, I receive calls requesting legal services, which are not required. I inform the caller accordingly. However, as a licensed CPA, I also give accounting advice as needed.

As far as IRS representation goes, one can be represented by an attorney, a CPA, or an IRS EA. There is some overlap towards what any of these professional types can do. All can negotiate and structure IRS deals on your behalf, hopefully getting you a better outcome and reducing your tax debt.

In this blog, I will discuss the circumstances where you probably don’t need legal representation and the situations where having a tax attorney to address your issue is the wisest choice.

Situations Where You Don’t Need a Tax Attorney

In case of an audit, your records are well maintained, and you have followed the tax code correctly; you should be able to get through the process without much trepidation. At most, having a tax CPA who can help prepare the information audit will be all that is needed.

In cases where you are being audited because of a questionable item, a range that falls outside the norm for that industry, a charitable deduction amount, and certain questionable expenses, you may only need to provide verification and plausibility. Getting your records in order and providing scheduled schedules align with what a CPA or an EA would specialize in.

Suppose you have a tax assessment that has an amount beyond your ability to pay at once. In that case, other options may be available to settle the debt, including installment plans, tax reduction negotiations, and other options. This area is where a tax attorney, a CPA, or IRS EA could investigate all available options, arrange ideal payment terms, or incorporate possible debt reduction strategies. Some of these options could include the following:

• Penalty Abatements – specific penalties and associated interest removed or reduced.
• Currently Not Collectible status – having collections stalled.
• Offer In Compromise – settling the tax bill for a lower amount.
• Installment Plans – pay tax debt over time.
• Innocent Spouse Relief – typically, for joint filers, both are joint and severally liable for the entire tax bill; however, there are circumstances where one spouse can be relieved of tax liability attributable to the other spouse.

When Tax Lawyers are Required

The main reason to hire a tax lawyer is when there are potential tax fraud and/or tax evasion charges. A lawyer can provide the necessary expertise and legal counsel, which one would most likely not receive from a non-lawyer tax practitioner. Most tax audits do not require this representation level, but knowing your options is beneficial if the potential for criminal charges exists.

If you need tax audit defense, having a tax lawyer would be advantageous for the following:

• Negotiating – lawyers are trained to look at both sides of a position which is ideal when needing to leverage all elements of the situation to obtain optimal results.
• Testifying Exemption – lawyers offer privileged communications, whereas other tax professionals may be compelled to testify against you in a legal proceeding.
• Criminal Charges Looming – If your tax situation has regressed to where IRS is threatening you with criminal prosecution, you will want an aggressive tax attorney on your side to fight for your rights.
• Portray Greatest Defensive Capability – having a lawyer for day one signals that you plan to avoid criminal charges and have adequate legal counsel in your corner.

Harmon Tax Resolution, LLC has you covered in either realm.

Since Will Harmon is a tax attorney, CPA, and IRS EA, he can provide complete representation across the spectrum. Whether you’re undergoing an audit due to a minor clerical error or facing criminal charges for tax evasion or tax fraud, Will can help.

No matter what level of representation is needed, it is paramount to respond quickly and without delay. The situation only worsens the longer you wait to respond to the IRS. Sometimes, you lose certain appeal rights if you wait too long. For a free consultation with a Port Saint Luce, Fort Pierce & Stuart Tax Attorney, contact Will Harmon today.