An IRS Tax audit can be a difficult and confusing process. Don’t make the mistake of going it alone! Choosing a tax law professional to guide you through the complex maze of ever-changing rules and regulations can make all the difference.
Experienced IRS Tax Attorney Mary E. King has helped many taxpayers protect their interests and avoid making very costly mistakes.
If you receive an audit notice from the IRS, IRS Publication 1 addresses taxpayers rights. Tax audits invoke fear in business owners and individual taxpayers. The audit may be a simple request for additional information, or a “field audit” at your home, or place or business, to examine your records.
If your audit is held in an IRS office, your tax examiner can apply remedies only available to IRS representatives. The examiner can income average, locate and apply deductions or credits you overlooked, and solve the problem to your benefit. They can help you create a reasonable payment plan within your budget if they determine that you owe taxes to the IRS.
During the audit, you’ll be asked to produce organized financial records, documentation, or cancelled checks. Your Taxpayer Bill of Rights lists your basic rights. You have the:
• Right to know and understand the tax laws and procedures applicable to your
• Right to prompt, clear and understandable communication
• Right to pay no more than is legally due to the IRS
• Right to raise objections and receive a response from the IRS
• Right to appeal to the U. S. Tax Court
• Right to a statute of limitations
• Right to privacy, confidentiality, and due process
• Right to an attorney or Low Income Taxpayer Clinic
• Right to an equitable determination
The IRS does not need a judgment against you to garnish your wages, but U. S. law and state law limits the amount of money the IRS can take. Tax law requires the IRS to leave you the money you need for basic living expenses. The amount you require for living expenses is calculated using the number of exemptions you claimed on your tax forms. If you do not offer to compromise, make a payment plan, or file bankruptcy, the IRS will garnish your wages, place a lien on your property, or seize your assets to pay your tax debt.
The IRS frequently places liens on taxpayers’ properties. Tax liens are public records in the county where they are filed. An IRS levy is the actual collection of the deficit owed to the IRS through seizure of assets, freezing bank accounts, taking money from bank accounts, and garnishing wages.
If you receive a Notice of Federal Tax Lien, the lien on your property has already been recorded with your county’s clerk of courtoffice. The IRS removes tax liens placed in error, and releases tax liens when your tax obligation is paid, or the statute of limitations has elapsed. If a federal tax lien is enforced, it will remain on your credit report as released for 10 years after your obligation is met. The IRS Publication 594, available online, explains IRS tax liens for small businesses.
A Federal Tax Lien can limit your ability to get credit and directly usurp your business income as it is received. Furthermore, if you file bankruptcy, the IRS may continue to collect after the discharge of debts. Bankruptcy may not discharge all IRS tax debt.
If you owe less than $25,000, you may qualify for the Fresh Start Program. You must also be in full compliance with all tax reporting procedures and current on your estimated payments to the IRS.
The IRS provides a Taxpayer Advocate Service to assist individual and small business taxpayers with all aspects of IRS tax laws, procedures, and collection processes. The Taxpayer Advocate Service even provides Low Income Taxpayer Clinics, and advises all taxpayers, “the worst you can do is nothing at all.”
Call Mary King now for your initial IRS tax audit consultation at, 941.906.7585