Learn what the IRS is looking for during an audit, the steps you should take to prepare for an IRS audit, and when it's best to get expert help. Gather the forms that the IRS has requested. You'll need to make sure you have copies, not originals. Organize your documentation and make sure that the documents you have match the year in which you are being audited.
If you realize that you have misplaced certain records, call immediately and request that the duplicates be sent to you. 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. For this reason, hiring an experienced tax auditing lawyer who not only trusts the details of the most recent tax laws, but also has experience negotiating these complicated issues, can produce monumental results compared to taxpayers trying to speak on their own behalf. The IRS has developed a set of rules based on audits of samples of returns selected at random from previous audits.
Tax lawyers, on the other hand, are licensed professionals who not only have the knowledge needed to understand the details of your tax auditing situation, but they also have the authority to negotiate with the IRS on behalf of the taxpayer and defend them in subsequent litigation, if necessary. In addition, when you hire a tax lawyer, you get an attorney-client privilege that you don't have with public accountants or tax preparers, and that everything you say to your tax lawyer is protected by the attorney-client privilege, and all the documents they prepare are protected by the attorney-labor product privilege. The reason it keeps them for seven years is that the IRS has a general audit statute of limitations of three years. If you ignore the audit notification, the IRS will overestimate the amount you owe, send the notification of deficiency to the last address it has on file for you, and calculate taxes, penalties, and interest without your knowledge.
While many tax audits are performed on a random basis and are issued for the IRS to generate accurate and up-to-date tax statistics, if your tax return was destined for a tax audit because you are suspected of committing fraud or tax evasion, having a legal professional who can guarantee the confidentiality of the attorney-client privilege is likely to give the best result when it comes to tax audits when it comes to tax audits. If you have received an audit notification from the IRS and expect to get the best outcome with respect to your tax savings, it is best to consult an experienced IRS auditing lawyer as soon as possible. They can generate more audit adjustments from them than from other tax returns, so they audit people with high incomes. An IRS audit involves reviewing or examining a taxpayer's account to confirm that all the information in their filed tax return is accurate, such as the total income reported and the tax exemptions requested, and that the tax preparation complied with federal and state tax laws.
If you consult an IRS auditing lawyer early in the auditing process for tax help, you are more likely to save money on tax expenses and avoid the severe penalties that can result from discrepancies in tax returns. Correspondence auditing is done entirely by mail, so there is little or no in-person interaction with IRS auditors. Another essential characteristic that a taxpayer should look for in an IRS auditing lawyer is their experience in helping clients through the tax audit process and achieving positive results. Due to certain disclosure requirements, the IRS will contact the taxpayer to notify them of their selection for an audit only by mail or phone.
