IRS audits can be a stressful and overwhelming experience for individuals and businesses alike. The prospect of being audited by the Internal Revenue Service (IRS) can be daunting, especially if you do not have the necessary expertise to navigate the process. This is where IRS audit attorney services come in.
IRS audit attorney services are designed to help individuals and businesses navigate the complex and often confusing process of an IRS audit. These services are provided by attorneys who specialize in tax law and have extensive experience dealing with the IRS. They can assist clients with everything from responding to audit requests to negotiating settlements with the IRS. By hiring an IRS audit attorney, clients can ensure that their rights are protected and that they receive the best possible outcome from the audit process.
Overall, IRS audit attorney services can be a valuable resource for anyone facing an IRS audit. With their expertise and knowledge of tax law, these attorneys can help clients navigate the audit process and achieve the best possible outcome. Whether you are an individual or a business, hiring an IRS audit attorney can provide you with peace of mind and ensure that your rights are protected throughout the audit process.
Understanding IRS Audit
What is an IRS Audit?
An IRS audit is an examination of an individual or business’s tax return to ensure that the information reported is accurate and complete. The IRS may conduct audits either by mail or in person.
Types of Audits
There are two main types of IRS audits: correspondence audits and field audits.
A correspondence audit is conducted by mail. The IRS will send a letter requesting additional information or documentation to support items on the tax return. The taxpayer has a specified amount of time to respond to the letter.
A field audit is conducted in person by an IRS agent. The agent will contact the taxpayer to schedule a meeting at the taxpayer’s home, business, or the agent’s office. The agent will review the taxpayer’s records and ask questions to gather additional information.
It is important to note that receiving an audit notice does not necessarily mean that the taxpayer has made an error on their tax return. Sometimes, audits are random and conducted to ensure compliance with tax laws. However, it is important for taxpayers to respond promptly and provide accurate information to avoid penalties and interest charges.
In the event that a taxpayer disagrees with the results of an audit, they have the right to appeal the decision through the IRS Office of Appeals. It is recommended that taxpayers seek the advice of an experienced IRS audit attorney to navigate the audit process and protect their rights.
The Role of an IRS Audit Attorney
What Does an Audit Attorney Do?
An IRS audit can be a daunting experience for anyone, and it can be especially stressful for those who don’t have experience dealing with the IRS. This is where an IRS audit attorney can be invaluable. An audit attorney is a tax attorney who specializes in representing clients who are being audited by the IRS.
The role of an audit attorney is to provide tax audit representation to their clients. This means that they will work with their clients to gather all of the necessary documentation and information that the IRS is requesting. They will also help their clients prepare for the audit by reviewing their tax returns and identifying any potential issues that may arise during the audit.
During the audit, the audit attorney will be present to represent their clients. They will answer any questions that the IRS may have and provide any additional information that is needed. They will also work to negotiate with the IRS on behalf of their clients to ensure that they receive the best possible outcome.
Why You Need an Audit Attorney
If you are being audited by the IRS, it is important to know that you have the right to retain representation. While it is possible to represent yourself during an audit, it is not recommended. The IRS is a powerful entity, and they have a team of experienced auditors who are trained to find any potential issues with your tax returns.
By hiring an audit attorney, you can be confident that you have someone on your side who understands the tax code and knows how to navigate the audit process. They will work to ensure that your rights are protected and that you receive a fair outcome.
In summary, an IRS audit attorney plays a vital role in providing tax audit representation to their clients. They work to ensure that their clients receive the best possible outcome during an audit and help to alleviate the stress and anxiety that can come with being audited by the IRS. If you are being audited by the IRS, it is highly recommended that you seek the services of an experienced audit attorney.
The Audit Process and Taxpayer Rights
Steps in the Audit Process
When a taxpayer is selected for an audit, the IRS will notify them by mail or phone. The first step in the audit process is to schedule an appointment with an IRS auditor. The auditor will explain the audit process and request documents and records related to the taxpayer’s tax return.
Once the auditor has reviewed the documents and records, they will discuss any discrepancies or issues with the taxpayer. If the taxpayer agrees with the auditor’s findings, they will sign an agreement and pay any additional taxes owed. If the taxpayer disagrees with the findings, they may request a conference with the auditor’s supervisor or appeal the decision to the IRS Office of Appeals.
Taxpayer Bill of Rights
Taxpayers have certain rights during the audit process. These rights are outlined in the Taxpayer Bill of Rights, which was enacted by Congress in 2015.
Some of the rights include the right to:
- Be informed: Taxpayers have the right to clear explanations of the audit process and the taxpayer’s rights.
- Quality service: Taxpayers have the right to prompt, courteous, and professional assistance from the IRS.
- Pay no more than the correct amount of tax: Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties.
- Appeal an IRS decision: Taxpayers have the right to appeal most IRS decisions in an independent forum.
- Privacy: Taxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary.
- Confidentiality: Taxpayers have the right to confidentiality of their tax information.
It is important for taxpayers to be aware of their rights during an audit and to assert them if necessary. A qualified IRS audit attorney can help taxpayers navigate the audit process and protect their rights.
Resolving Audit Issues
When facing an IRS audit, it is important to have a qualified attorney by your side to help you resolve any issues that may arise. Here are some ways an experienced IRS audit attorney can help you:
Payment Plans and Installment Agreements
If you owe taxes as a result of an audit, an attorney can help you negotiate a payment plan or installment agreement with the IRS. This can help you avoid collection actions such as wage garnishments or bank levies. Your attorney can work with the IRS to determine a payment plan that fits your budget and helps you avoid financial hardship.
Appealing Audit Decisions
If you disagree with the results of an audit, you have the right to appeal the decision. An attorney can help you prepare and submit an appeal to the Office of Appeals. This can be a complex process, but an experienced attorney can guide you through it and help you present your case in the best possible light. Your attorney can also negotiate with the IRS to try to reach a settlement before the appeal process begins.
Overall, an IRS audit attorney can help you navigate the audit process and resolve any issues that may arise. Whether you need help negotiating a payment plan or appealing an audit decision, an attorney can provide the knowledge and expertise you need to achieve a favorable outcome.
Additional Resources for Taxpayers
Taxpayers who are facing an IRS audit may benefit from utilizing additional resources that can provide them with assistance during the audit process. Two such resources are Low Income Taxpayer Clinics and the Taxpayer Advocate Service.
Low Income Taxpayer Clinics
Low Income Taxpayer Clinics (LITCs) are organizations that provide free or low-cost legal assistance to taxpayers who have a low income and are facing an IRS audit. LITCs can provide representation, education, and advocacy to taxpayers who are experiencing economic hardship.
LITCs can assist taxpayers by providing representation in tax court, negotiating with the IRS on their behalf, and helping them to understand their rights and responsibilities. LITCs can also provide education and outreach to low-income taxpayers to help them understand their tax obligations and rights.
Taxpayer Advocate Service
The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that provides assistance to taxpayers who are experiencing economic hardship or who are facing an IRS audit.
TAS can help taxpayers by providing information about their rights and responsibilities, assisting with resolving disputes with the IRS, and advocating on their behalf. TAS can also provide education and outreach to taxpayers to help them understand their tax obligations and rights.
In conclusion, taxpayers who are facing an IRS audit may benefit from utilizing additional resources such as LITCs and the TAS. These organizations can provide assistance, representation, education, and advocacy to taxpayers who are experiencing economic hardship or who are facing an IRS audit.