An IRS audit brings many challenges to a US taxpayer. Here in San Diego, the IRS revenue officers or auditors are extremely aggressive. The first challenge for our clients is to remain calm. The IRS Notification of Audit letter is sure to make most hearts miss a beat. However, the IRS audit process isn’t a mystery and the experienced IRS audit and tax attorneys at Allen Barron are prepared to help you to achieve better results than you would on your own. We handle all communications and meetings with the IRS, and in many situations our clients don’t even need to be present.
It is important to understand that the IRS revenue officer has a strategy for your audit. Your return was selected for a reason, and if the IRS auditor is going to dedicate time to your account it is due to the revenue they believe they can generate from the additional check(s) they expect you will write. This is why it is so important not to speak directly with an IRS agent or representative. The second challenge most taxpayers face is the urge to provide far too much information in an effort to appear cooperative with the IRS. You will never get on the IRS’ “good side” and providing more information than required actually strengthens the IRS’ hand. They will use this information to expand the scope of the audit, and ultimately increase the amount you wind up paying at the end of the audit.
The third challenge most taxpayers face is simply a lack of knowledge about the IRS audit process itself. We provide our clients a detailed white paper “What to Expect from an IRS Audit” that helps them to understand each step. It is important to ensure some information is included in the “audit record” as this is useful when appealing the audit findings to reduce the taxes you might owe. The fourth challenge is a misunderstanding of the importance of the statute of limitations, and how to use it to your advantage. In many cases, the IRS comes up against the three year statute of limitations in the midst of an audit and sends the taxpayer a letter asking them to voluntarily extend the statute. This may or may not be in your best interests.
If you have been contacted by the IRS it is important to speak with the experienced IRS tax attorneys at Allen Barron. An IRS audit brings many challenges, and we will help you to successfully navigate this complex process and put you in the best position to achieve a successful outcome. We invite you to call 866-631-3470 for a free consultation.