The Wall Street Journal recently examined plans for 700 new IRS auditors who will be added to the IRS department that specifically monitors small business and the self-employed. IRS Commissioner John Koskinen claims the new money was found as a result of retirements, internal turnover, and other “efficiencies.” Lawmakers are pounding the White House and the IRS management team, who have repeatedly called for an increase in the IRS budget. While the political arguments rage, the implications for US taxpayers are clear: the number of IRS audits – especially those associated with small business and the self-employed – is about to rapidly rise.
What should you do if you receive a notification from the agency concerning an IRS audit? Never contact the IRS directly. Most taxpayers think the IRS revenue officer or agent will “warm up” to them if they are overly nice and provide more information than requested, and they will have a much better result in the audit. The exact opposite is true. IRS revenue officers and agents are highly skilled, trained interrogators who know how to elicit information from taxpayers that is not part of the audit, and should not be provided. They use this information, “voluntarily” provided by the taxpayer, to expand the scope of the audit increasing their ability to find information to dispute, open previous years tax returns and significantly increase the amount owed by the taxpayer at the end of the audit.
The experienced IRS audit and tax attorneys at Allen Barron have years of expertise dealing directly with the IRS. We handle all communications on your behalf, and hold the IRS to a high standard based upon tax laws and Generally Accepted Accounting Principles or GAAP. The audit letter and informational requests expose the IRS’ strategy for your audit, and we can take proactive steps to limit the scope of the audit, challenge the IRS when necessary and reduce or eliminate your exposure to paying additional taxes as a result of the audit itself.
Our clients appreciate the peace of mind gained by not having to talk to the IRS, and the comfort of knowing that Allen Barron’s attorneys are aggressively protecting their interests. If you have been contacted by the IRS or one of the 700 new IRS auditors regarding a small business, self-employment, offshore, FBAR or personal audit we invite you to contact us for a free consultation at 866-631-3470.