If the Internal Revenue Service (IRS) sends you a notice that states that you are going to be audited, it is most likely that the first thing you will do is start to panic. That is a completely understandable response, but try to take a deep breath and keep as much of your cool as possible.
Once the initial news hits, then you need to start thinking about a response – because an IRS audit notice is something that you should not ignore. In beginning to figure out how to deal with the IRS audit, you can also begin to realize that it might not be as painful as it first sounds – kind of like a root canal.
So, even though the first thing you will do is panic, the first thing you should do is get some assistance to respond to the IRS. It is highly recommended that you obtain the services of an experienced tax law attorney when the IRS is auditing you. A tax attorney will be able to help you figure out the best strategy in working with the IRS and will give valuable advice on whether to agree to a tax bill if that is the end result.
In this article, we will talk about tax audits by first discussing why you might have been picked for an audit in the first place. Then, we will further discuss why having a tax attorney in your corner is a smart move.
If, after reading this article, you would like to discuss your own tax circumstances, we invite you to call the Sarasota tax law attorney Mary E. King. The Law Office of Mary E. King, P.L. can make sure that your tax issues are resolved efficiently and at the lowest cost to you. Please fill out our online contact form, or call us at 941-906-7585 today.
Why Did I Get Picked for an Audit?
The IRS conducts about one million tax returns each year. Thus, there are many reasons why the IRS could be conducting an audit. Moreover, the IRS does random audits as well, so a person being audited might not be specifically targeted for any reason. That said, here are some reasons why the IRS may have initiated an audit with you.
1. Errors on your return. One big reason that a red flag may pop up at the IRS is if your tax return contains an obvious error. If you forgot to attach a certain form, or if your math does not add up, then those simple mistakes could put you in the IRS’s “to be audited” pile. That is why you need to proofread your return before sending it. That said, if you made an honest mistake that was not major, the IRS’s audit can easily bear that out.
2. You were picked at random. As noted, the IRS does random audits based on certain metrics and trends. There are IRS computer programs that will suggest an audit when a number of characteristics match returns that tend to have problems. Thus, it is very possible that your tax return was picked at random, and thus the IRS is not specifically going after you.
3. Audit by association. The IRS will also pick your individual return for an audit that return is somehow in the orbit of activity that is suspected to be fraudulent or criminal. For example, if you did business with a person or company that was also selected for audit, is being investigated for tax fraud, or is under an IRS criminal investigation, then it is possible that your return could get pulled in with any investigation, even if you have no knowledge of the activities of the real investigation target. As another example, if your tax preparer is under investigation, then your return might get picked up for audit.
Why Would a Tax Lawyer Help?
Having a qualified tax lawyer in your corner can be invaluable in the audit process. A tax lawyer who has dealt with the IRS many times in the past will be well versed in how to communicate with the IRS, what documents the IRS is most interested in seeing, and how to negotiate and resolve matters most efficiently.
If you have never dealt with a government agency before, you may feel overwhelmed with the kinds of requests the IRS makes, or even the legalese that is packed into an IRS letter. Accordingly, your tax lawyer will be ready to quickly, accurately, and effectively interact with the IRS on your behalf. That is well worth the cost of legal assistance.
Let an Experienced Sarasota Tax Law Attorney, Help You With Your IRS Audit
No question, a tax audit can be stressful. Yet, having a Sarasota tax law attorney at your side to advise you on options and strategies for responding to the IRS is invaluable during the audit process. So, when it comes to dealing with tax relief and tax litigation, you need to talk to a Sarasota tax law attorney who can help. Mary E. King has spent her career concentrating on tax law and can help you with tax scams in Florida and elsewhere. Attorney King has a wealth of information about what types of options would make the most sense for you and your business.
That helps explain why she’s received an A+ rating from the Florida Better Business Bureau. If you have a tax-related issue – no matter how small or how large – setting up an initial consultation with Mary E. King, tax lawyer of Florida, is the first step you should take towards relief.
The Law Office of Mary King P.L. offers complete IRS problem-solving services including all areas from tax debt settlement to planning the most efficient tax strategy for individuals and businesses. Call us today to schedule an initial consultation. With years of experience as a tax lawyer in Sarasota for many clients, Attorney Mary E. King can make sure that your tax issues are resolved in your favor. Fill out our online contact form, or call us at 941-906-7585. Remember, at the Law Office of Mary E. King, we are focused on solving your tax issues for good.