An Internal Revenue Service (IRS) audit is a serious matter. Even if your audit results in no adverse findings or consequences, it is still a stressful process. However, your audit could result in back tax demands, penalties, or potentially even criminal consequences. When your financial records are under scrutiny, you need an IRS tax audit lawyer in Phoenix. Contact Dayes Law Firm today to speak to one of our experienced tax controversy attorneys who could advise you on what to do, what to avoid, and how to come out of it in the good graces of the IRS.
What Are the Different Types of IRS Audits?
The IRS conducts several types of tax reviews, each varying in complexity and level of scrutiny, and all could benefit from the support of a Phoenix attorney.
Correspondence audits generally investigate minor errors or mismatches. These are handled entirely by mail, and you must provide all documents requested by the IRS by post.
Office audits take place in a local IRS office, where you will answer questions about your tax return. Typically, the IRS requests additional information regarding records such as itemized deductions, business expenses, or income sources. You must arrive at the IRS office with all your documentation.
Field audits take place in your home or office so that an IRS agent can conduct a comprehensive examination of your records. Although every IRS audit can feel daunting, field audits are particularly rigorous.
What Are the Potential Consequences of an IRS Audit?
An IRS audit can have significant financial and legal consequences. If your returns show no issues, the audit can end with no further action. However, if the audit uncovers errors, the IRS may assess you for additional taxes, interest, or penalties. In serious cases, especially if they suspect tax fraud, the IRS may pursue criminal charges.
The scope of an audit can extend to previous tax returns, increasing your potential liability. Beyond the financial aspect, audits can be time-consuming, stressful, and require detailed documentation. They may increase the likelihood of future audits, especially if the IRS views you as high-risk. Having professional legal representation from one of our Phoenix lawyers during a tax audit could help protect your rights, ensure proper communication with the IRS, and reduce or eliminate penalties.
Why Do I Need a Lawyer for an IRS Audit?
An IRS audit can be stressful and complex, making it crucial to have legal support. Our attorneys in Phoenix understand IRS audit procedures, rules, and deadlines, helping you avoid costly mistakes. We could act as your representative, handling all communication with the IRS so you do not inadvertently say something that could be used against you.
We could also gather and present evidence, and challenge incorrect findings. If the audit uncovers serious issues, such as potential fraud or unfiled taxes, we could protect you from criminal liability.
Ultimately, having our professional legal representation ensures your rights are safeguarded, your financial interests are defended, and the process is handled as efficiently and successfully as possible.
Contact an Attorney in Phoenix Today About Your IRS Audit
An IRS audit can put a lot of pressure on an individual or a business, and you should avoid dealing with the agency without professional support. An experienced IRS tax audit lawyer in Phoenix is always available to protect your rights, handle communications with the IRS, and advocate for the best possible outcome. Get trusted legal guidance today when you call for a free consultation and take control of your financial future.
An IRS audit is a review of a taxpayer’s financial information and records to ensure compliance with tax laws and regulations. Audits can be conducted either by mail (correspondence audit) or in person (field audit).
The IRS uses various methods to select taxpayers for audits, including computerized screening based on discrepancies or anomalies in tax returns, random selection, and referrals from other sources, such as third-party reporting.
There are three main types of IRS audits: correspondence audits, in-person audits (field audits), and office audits. Correspondence audits are conducted by mail, while field and office audits involve meetings with IRS representatives.
If you receive a notice of an IRS audit, it’s essential to respond promptly and follow the instructions provided. Failure to respond to an audit notice can result in adverse consequences, including penalties and additional taxes.
Taxpayers should gather all relevant documentation and records to support the items reported on their tax returns, including income statements, receipts, bank statements, investment records, and other financial documents.
Common triggers for IRS audits include discrepancies or inconsistencies in tax returns, high-income levels, claiming deductions or credits that are unusually high or out of the ordinary, and involvement in certain industries or professions that are more prone to tax evasion.
During an IRS audit, the IRS will review the taxpayer’s financial records and documentation to verify the accuracy and completeness of the information reported on their tax return. The taxpayer may be asked to provide additional information or clarification as needed.
Taxpayers have certain rights during an IRS audit, including the right to representation, the right to appeal any proposed adjustments, the right to confidentiality, and the right to a fair and impartial process.
The potential outcomes of an IRS audit include no changes to the tax return, adjustments to the tax liability (either increases or decreases), penalties for underpayment or non-compliance, and, in rare cases, criminal prosecution for tax evasion.
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