IRS Tax Audits

An IRS Tax Audit can feel like a Disaster-in-Waiting

When a tax audit or examination notice arrives and informs you that your tax return has been chosen for examination, the news can immediately bring on anxiety and fear. You need legal help now if you are undergoing an audit! There are many reasons a return is selected for examination.

Call or email us to learn more about the solutions our tax attorneys can offer and how Martelle Law can assist you.

The following is a list of reasons for the most typical IRS Audits:

• A basic tax audit is generally randomly selected. This kind of audit can be quite difficult for the average taxpayer to work with since the IRS revenue agent will inspect every aspect of the tax return and require substantiation of each item on the return.

• Another type of tax audit directly examines your return for specific expenses. This form of audit is conducted if the IRS thinks you may be writing off expenses that are not allowable as write offs. These could be expenses related to travel, business, or other items. If this is the case, the IRS revenue agent will examine your documentation extensively in regards to the specific items in question.

• The IRS might think you are not claiming all of your income. During this type of audit, the IRS is looking for proof that the taxpayer has not declared their full income. The investigation begins when various tax reporting sources have reported higher earnings than were reported by the taxpayer.

• Another type of exam occurs when the tax payer fails to file a return. If a business or person does not file necessary returns, the IRS will file returns for them. The IRS calls this an SFR or Substitute for Return. At this point, the IRS sends out a Notice of Deficiency. If the taxpayer does not protest this Notice, the end result will be a tax assessment. As you can imagine, if the IRS prepares the forms, it is not in the taxpayers favor. Your income could be overstated and any business or personal expenses would not be included.

If your return is chosen for audit or examination or you receive a notice from the IRS informing you of a tax assessment, you need a tax attorney NOW!

You will have to comply with many strict timelines and guidelines concerning an IRS tax audit. All of your documentation must be collected and prepared in a manner that is easily understood. The entire IRS audit process can be a nightmare and no fun at all. However, if you obtain competent legal representation, your chances of owing less or no money to the IRS at the end of the audit process will be much better than if you had tried to do handle it yourself.

If you miss the time deadlines and the tax is assessed, you owe it and the IRS will take steps to collect. If this occurs, often your best option is an Audit Reconsideration. This is a proceeding to get the IRS to take another look at the taxes that were assessed and reconsider whether you owe them. Martelle Law takes pride in our successful track record of representing our clients all over the United States. We vigorously represent our clients and do our best to solve their tax problems.

For a complimentary, no obligation assessment of how or if we can assist you with a Tax Audit Click Here