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Getting a notice from the IRS that your tax return has been selected for audit is something you should take seriously but that can be carefully managed with a legal professional.
Get in touch with a Fairfax IRS audit and appeals lawyer when you receive notice that the IRS intends to audit your personal or business returns. Our trustworthy tax lawyer can handle document production and provide knowledgeable advice on how to properly respond. In addition, if you have already experienced an audit and dispute the results, our firm could help you appeal the result.
Some businesses and individuals are at higher risk of audits than others. While some returns are selected at random for audit, the IRS’ automated system flags most of the returns. A taxpayer who fails to file returns will increase the possibility of an audit, especially if their income is relatively high.
A taxpayer’s returns may be flagged for audit if the system detects a possibility of unreported income. When the reported income does not match the information that the IRS received via W2, 1099, and K1 forms, it may investigate the discrepancy. Self-employed people and those operating cash businesses are also more likely to be audited than others.
The IRS system also compares the deductions someone took with those of other taxpayers with similar incomes. If deductions are unusually high in comparison, that individual or business may be flagged for an audit. The decision to audit does not necessarily mean the reviewer will find a problem, but it is advisable to have a Fairfax lawyer on hand to navigate any IRS audit that occurs.
You will receive an audit notice by mail. The IRS will not make initial contact by phone or email. The audit notice will specify the tax year(s) of the return the IRS is reviewing, explain the reason for the review, and provide the name and contact information of the examining officer. The audit letter may ask for additional information and provide a deadline for your response.
Contact a Fairfax attorney as soon as you receive the audit letter. They can compile the information the IRS requested or provide reasons why the information is not available. A lawyer should handle all contact with the IRS reviewing officer.
Many audits can be performed entirely through the mail but sometimes an auditor conducts an in-person audit. An examiner conducting an in-person audit might want to tour your business if they are auditing a business return. In most cases it is advisable for the attorney to handle all communications with the IRS and not have the taxpayer speak with the IRS.
When the audit is complete, the IRS will notify you and your legal representative of the results in writing. If the accepts your return as filed there will be no further action. It may issue a refund if the audit indicates you overpaid taxes. The IRS may also propose changes to your return that require you to pay additional taxes.
You may accept or reject the IRS’ proposed changes. If you accept the changes, you should pay the amount owing as soon as possible. When you do not agree with the changes, and the proposed tax bill exceeds $50,000, a Fairfax attorney could help you appeal.
Appeals can often be resolved through providing additional documentation and through informal conferences with the examiner’s manager, and, if that does not lead to an acceptable resolution, with the IRS Office of Appeals. If these discussions do not lead to a satisfactory outcome, your lawyer could potentially petition the Tax Court to consider your case.
Audits by the IRS are not guaranteed to result in penalties or aggressive collection efforts, but it is in your best interest to have a legal professional distill the issue in a way that offers clarity.
Consult a Fairfax IRS audit and appeals lawyer when you receive a notice of audit. We can communicate with the reviewer, compile all necessary information, and offer avenues of appeal if it comes to that. Get in touch today to schedule a consultation.
Pontius Tax Law, PLLC is a tax law firm that strives to resolve sensitive tax problems through trust, dedication and value. The law firm was founded by John Pontius with offices in Washington, DC, Rockville, MD, Bethesda, MD, Fairfax, VA, and Alexandria, VA. Mr. Pontius represents individual and business clients with sensitive and serious tax matters before the Internal Revenue Service and state taxing authorities. His client base is local, national, and international.
Over the course of his career, Mr. Pontius has represented businesses and individuals with complex tax issues in the following areas: FBAR examinations, offshore and domestic disclosures, FATCA, FIRPTA, tax planning, unfiled tax returns, release of tax liens and levies, trust fund recovery penalty, IRS and state audit examinations, as well as appeals, penalty abatement, U.S. Tax Court litigation, along with defense of tax fraud and evasion. If you require assistance from a tax lawyer, contact Mr. Pontius to discuss your situation.
