Tax Audit

One of the biggest fears of taxpayers is having their tax returns audited by the Internal Revenue Service (IRS).  According to the IRS Audit Statute of limitations, there is up to three (3) years to audit your tax return from the time that you file it.  Fortunately, there are steps that you can take to avoid being audited, as well as ways to get assistance in the event that you are audited by the IRS.

Avoiding Tax Audits

You can avoid needing tax audit help from a tax debt attorney by taking certain steps as a precautionary tax audit defense with avoiding common factors that might trigger an audit by the IRS.  First, prepare a neat tax return using a computer program or software, which will help you to avoid common calculation errors.  Next, if you have made unusual or large claims or deductions on your tax return, include the documentation to back them up, and be prepared to produce additional documentation in the event of an audit.  Finally, remember that filing Schedule C – Profit or Loss for Business, often triggers an audit.  You may want to consult a tax professional as to any alternate ways to claim self-employment income, or to prepare Schedule C in as straightforward a way as possible.

Tax Audit Defense

If you are notified that you are being audited, you will want to contact your accountant immediately, so that you can review your tax return and prepare yourself for the tax audit process.  Your accountant may be able to give you invaluable advice in terms of handling the tax audit, and even may be willing to assist you with the process.

Next, educate yourself about the tax laws that pertain to you and your situation, so that you are knowledgeable about what is required from you in order to prepare an air-tight tax return.  The IRS publishes countless information sheets and pamphlets that summarize relevant tax laws and advise taxpayers as to many different tax-related issues.

Finally, do not hesitate to contact a tax attorney at any time during the tax audit process, even if you are the midst of the actual audit.  You are free to consult with your attorney at any time, and you may be able to even postpone the audit until your attorney is available, if need be.  An experienced tax debt relief attorney can assist you through the audit process, and help you present your tax return and documentation to the IRS in the best light possible and help you avoid an IRS federal tax lien or any other penalties that can be used against you.

Winning a Tax Audit

You should always be prepared by keeping all of your records and receipts organized, which will make your tasks much easier in the event of a tax audit.  If you are audited, and you need additional time to obtain and/or organize necessary documents, don’t hesitate to request an extension from the IRS so that you can properly prepare for the audit.  Keep in mind that only 25% of tax payers who are audited escape the audit without paying more taxes.  Therefore, you need to be as prepared as possible in order to minimize additional taxes that you may be ordered to pay.

Next, try to meet with the IRS at their offices, rather than allowing them to enter your home or place of business, which might raise further questions about your return.  Likewise, do not volunteer information to the IRS that is not directly or specifically requested by them.  There is no need to provide additional information to the IRS, which may cause only more questions and/or inquiries into your tax records.

Finally, if you are not successful with your tax audit, and the IRS orders you liable for additional taxes, you have the option to discuss your tax audit report with the examiner, and even to appeal the decision in the court of tax appeals.  In order to determine whether an appeal might be beneficial to you, or to avoid receiving a negative audit report in the first place, you should be sure to contact an experienced tax attorney for assistance with your tax audit.