If you need or want help processing an IRS audit or reconsideration, you have the right to be represented. This means that you can hire an attorney, certified public accountant (CPA), or enrolled agent to represent you before the IRS. Another thing I generally like to do is use your public accountant, your tax preparer, or your registered agent, the person who prepared the tax return, as your best witness. The witness who can come and declare that you did everything right.
You deducted the items you were entitled to. You only took into account the correct revenues. I want to use them as witnesses. You can't use those people as witnesses if you represent them before the IRS, because then they go from being an unbiased witness who can actually help you to becoming an argumentative defender.
During an audit, the IRS will ask you for information and documents that explain your position on your tax return. It is important to provide the information as requested by the IRS. If you have a licensed professional doing the auditing, help your tax professional with the facts and your tax professional will work with the IRS. An experienced IRS tax lawyer knows tax law inside and out and understands how the IRS works.
They can potentially limit the scope of an audit, reduce your final tax bill, appeal the findings of an audit to a tax court, and provide legal representation in the event of criminal charges. Because some of the people who are audited by the IRS each year are simply chosen at random, it's impossible for you to avoid being selected from those groups. Find answers to frequently asked questions about IRS audits from a tax lawyer with more than 25 years of experience successfully representing clients before the IRS. Correspondence, office, field auditing and the Taxpayer Compliance Measurement Program are types of Internal Revenue Service audits.
If you disagree with the results of the audit, you have the right to appeal the final determination of the IRS within 30 days of the letter from the IRS. For this reason, you should always hire an IRS tax lawyer for any serious matter related to tax law. For office and field audits, you will have a specific date and time for an in-person appointment with the IRS representative who will be in charge of the audit. Unlike other types of IRS audits, taxpayers don't need to meet with revenue agents to clarify issues with mail-order audits.
The reason it keeps them for seven years is that the IRS has a general audit statute of limitations of three years. Certified public accounting firms (CPA) perform external audits, while the company's auditor is responsible for internal audits. In addition to that, if you do not comply with the 30 days, the IRS will send you a notice of deficiency and you still have 90 days to file a petition with the United States Tax Court in disagreement with the audit, and then process the appeals of the IRS and the IRS area council, not with the auditor, but with the IRS appeals area council to resolve the audit. The auditing process begins with an audit letter from the IRS and generally includes the specific items of income and expenses that the IRS intends to review initially.
The IRS conducts this tax audit to ensure that taxpayers comply with tax laws and update data from the Discriminating Functions System. While you can contact the IRS tax auditing department by phone, other options include the mail or online at the IRS. When you receive the audit letter from the IRS, the first logical step is to find out why you were selected.