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!
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