Did you know that an IRS tax audit opens the door for California tax agencies? If you receive a notification from the agency regarding an IRS audit, you have several immediate concerns. Your tax attorney and accounting professional at Allen Barron will provide extensive guidance on what to expect from an IRS audit and prepare an aggressive defense to limit the scope of the audit and your resulting financial exposure.
We will also help you to understand how an IRS audit opens the door for California tax agencies. Most US and California taxpayers do not know that the IRS and California’s tax agencies like the FTB and EDD actively share information. When you make a change to your federal return the IRS automatically notifies the EDD and FTB. Likewise, a change to your California tax return will result in a notice to the IRS. Therefore, our attorneys and accounts must carefully consider the impact which modifications to your federal tax returns during an IRS audit may ultimately have upon your California tax obligations.
The IRS and California tax agencies work hand-in-hand. When one finishes, the other is the next knock on the door you will hear. The challenge for California taxpayers is this:
A seemingly small settlement with one tax agency can open the door to a substantial tax liability with another tax agency.
If you have been contacted by the IRS for an audit it is not in your legal or financial best interests to communicate with the IRS directly. We invite you to contact us or call 866-631-3470 for a free consultation and to schedule an appointment and to learn how to protect yourself. The IRS has already strategized to separate you from your hard earned money before they ever contacted you for an audit. Allen Barron will aggressively defend you in a tax audit, limit the scope of the audit and ultimately reduce your financial exposure.