Audit Representation

Resolving Your Tax Audit

A tax audit is one of the most stressful events a taxpayer will experience.  Audits are used by all tax agencies to verify that income, expenses, withheld taxes, and credits are accurately reported on tax returns. If your tax return has been selected for audit it is important you understand your rights and obligations. Tax audit representation from an experienced tax attorney is key to resolving your audit with minimal tax and penalties assessments.

THE AUDIT PROCESS

Each audit proceeds down a slightly different path. Some audits are conducted entirely through the mail while other audits require meeting with the examiner at your home, place of business, or the auditor’s office. Generally speaking, each audit will include some variation of the following:

WHY RETURNS ARE SELECTED FOR AUDIT

The majority of examinations are performed by the IRS on an individual’s 1040 tax return. The IRS determines which tax returns to examine based on three different techniques: Computer Scoring, Third Party Documentation, and Information From Other Sources.

NOTICE

After your tax return has been selected for examination, you can expect to receive a mailed notice. The notice not only informs you that your return has been selected, but is your cue to begin preparing for your exam and making arrangements to have your representative contact the assigned examiner.

TAXPAYER RESPONSE

The notice received by the taxpayer usually calls for the taxpayer to respond within a certain period of time. How you respond to the notice will impact how the rest of audit will be carried out. The initial contact with the auditor will set the scope of the audit, the documents to be provided, and timeline for providing those documents. It is also an opportunity to develop a good working relationship with the auditor without conceding any ground.

SPEAK WITH A TAX ATTORNEY REGARDING YOUR AUDIT

If your tax return has been selected for audit, then you should consult with an experienced tax audit attorney first. We provide free audit evaluations to taxpayers.  Request your free evaluation today.