An IRS tax audit is a serious issue and one that you should respond to promptly. It can seem tempting to provide the necessary paperwork and schedule a meeting with an IRS representative to handle this on your own but this could be a significant mistake. There are plenty of questions to ask in the wake of deciding what to do next after you have been notified of an audit.
If your accounting books have been well prepared, you might be better set up for this situation than others. However, an IRS tax audit is an inspection and an examination of your account books or a face to face interview with IRS auditors to ensure that there are no false reports or discrepancies in your tax returns. You will always hear first about an IRS tax audit through the mail. Some factors can increase your likelihood of being selected for a tax audit, such as having transactions with other taxpayers such as investors or business partners who have already been selected for a tax audit.
What to Do Immediately After Finding Out About a Tax Audit
When you’ve been notified that you’ve been selected for an IRS tax audit, it is strongly recommended that you hire an experienced tax attorney to assist you with tax audits. This is because there are many specific details associated with a tax audit that can easily become overwhelming or small mistakes that can cost you significantly. It is important to work with a tax attorney not just to be familiar with the process of a tax audit but to know how to respond to common challenges and problems.
An experienced tax attorney will understand all of the tactics necessary to minimize tax audit risks and ensure that you are as fully protected and prepared for this process as possible. While your CPA and accountant should have vast knowledge of tax audits and accounting, they might not be fully prepared to represent you in complicated tax issues including a tax audit. A knowledgeable tax attorney, however, has the ability to handle tax audits of all different types.
The Biggest Reasons to Select a Tax Audit Attorney
There are several common reasons why you should choose to work with an attorney rather than working with an accountant or trying to handle an IRS tax audit on your own. First of all, tax attorneys have special experience in dealing with all kinds of tax matters, including tax debt settlements.
They are well versed in dealing with complicated tax situations and as soon as you’ve been notified of your audit, your tax attorney can look at all of your account books, find issues, and then help you strategize for ways to deal with those.
Additionally, one of the biggest benefits of working with a tax attorney is that they have experience in dealing directly with the IRS. It can be very difficult to answer all of the questions and provide the necessary documentation to the IRS and your tax lawyer will sit down with you well in advance at this audit meeting or expectations to ensure that you know what you need to provide. Your lawyer will be familiar with the federal laws that you must abide by and opportunities that you might have to settle your case by protecting your assets.
Another big reason that it makes sense to partner with an experienced Georgia tax attorney is to reduce tax liabilities and penalties, particularly if the IRS has stretched back a few years in auditing you, it is the possibility that the penalties for failure to pay your taxes could be significant.
A knowledgeable tax law firm in Georgia can assist you with minimizing your tax liabilities and responding to the auditors with ways to reduce your penalties in the event that it has been determined that you owe back taxes. You will be able to understand all of the different options available to you when you retain an attorney who has years of experience in this particular field. A dedicated lawyer can be a significant ally for you as you move forward so that your questions can be answered promptly.