Why do you need an attorney if you are facing an IRS audit? What is the strategy of an IRS audit and the statute of limitations which arises during many audits? Allen Barron provides sound advice and experienced representation for US taxpayers facing an audit. The first piece of strategy surprises most taxpayers: you do not have to speak directly with the IRS during an audit and it is not in your best interests to do so. Many IRS audits are actually begun with a fairly innocent looking letter requesting information from the taxpayer regarding certain portions of the tax return. The IRS knows that US taxpayers tend to provide much more information than necessary and far more information than they should in response to these letters in an attempt to appear honest and cooperative. The IRS then uses the information provided by the taxpayer against them after revealing their intent to audit.
Allen Barron’s experienced tax attorneys manage all communications with the agency during an IRS audit. Our clients are relieved when they learn they do not actually have to speak with the IRS or sit through an audit. This reduces the stress, worry and fear most taxpayers experience when they go into an IRS audit without an experienced tax attorney. They also are surprised to learn information shared with a CPA, accountant, tax preparer or other financial adviser can be subpoenaed by the IRS and used against the taxpayer. The tax attorneys at Allen Barron extend the protections of the attorney-client privilege which is an absolute legal barrier against the IRS. The taxpayer is able to share information with our attorneys under the protections of the attorney-client privilege so that we may have a full and candid discussion about the strategy of an IRS audit and how we will limit or outright defeat the IRS’ attempt to elicit additional taxes.
Most US taxpayers are unaware there is a three year statute of limitations for the IRS to audit your return (unless you have failed to report substantial income, failed to file a return or provided fraudulent information). This important date often arises during the course of the audit and the IRS routinely sends a letter to the taxpayer asking them to waive the statute and continue with the audit. Is this in your best interests? In some cases it is absolutely not and you should hold the IRS to the statute, while in others it is appropriate to agree to waive the statue of limitations. How will you know what to do?
What should you do if you receive a letter from the IRS requesting additional information or a Notification of an IRS audit? Allen Barron provides those with questions about IRS communications or facing an IRS audit with a free guide “What to Expect from an IRS Audit” and invites you to contact us for a free consultation at 866-631-3470. Learn more about the strategy of an IRS audit as well as your rights and answers to questions such as the statute of limitations and appealing an IRS audit.