Even the most honest taxpayers get nervous when they receive a notice of an IRS audit. The audit process can be stressful, but many audits can be resolved fairly simply and without even meeting face-to-face with your auditor.
If you receive an IRS audit notice, follow these steps.
Understand the Notice
IRS notices can be difficult to understand. You want to make sure you know exactly what the notice is referring to and what you have to do.
For example, you may receive a notice of adjustment and mistake it for an audit. This notice is actually just telling you that your return is being adjusted, and you only need to do something if you disagree with the adjustment.
If your return is being audited, it may only be because of a single item. These issues are often handled in correspondence audits, which are done entirely by mail.
If the issue simply requires sending in proof of a deduction or expense, you may just send in the necessary documents and wait for a response. For more complex audits, you should consult a tax audit defense attorney.
Audit Mistakes
While you try to sort out your issues with the IRS, avoid these common audit mistakes:
- Don’t volunteer information that isn’t specifically asked for.
- Don’t talk to an IRS auditor without speaking with an attorney first.
- Don’t avoid the audit notice or try to hide from the IRS.
You can avoid many of these problems by seeking representation from a tax audit defense attorney. You have the option of having your tax attorney handle all of the communications on your behalf. If there is an in-person audit, your attorney can attend in your place or you can both go together.
Tax attorneys have attorney-client privilege, which means your attorney can’t be forced to testify against you. You can, therefore, be forthcoming about the facts surrounding your case.
However, be advised that other professionals, such as accountants, don’t have the same privilege and can be subpoenaed to testify against you.
Many tax audits involve simple oversights or errors, but severe penalties and tax fraud charges are imposed in some cases. If you have any reason to be concerned about the items on your tax return, contact an audit defense attorney right away.
Get help with an IRS tax audit by calling The Gartzman Law Firm at (770) 939-7710. We can communicate with the IRS on your behalf and dispute any adjustments made to your return.