The Benefits of Hiring an IRS Audit Attorney – Tax Lawyer
When it comes to IRS audits, the benefits of hiring a tax lawyer can be invaluable. An audit can be a stressful experience, and penalties and criminal prosecution are possible. It can also take years to get the case resolved. An attorney can draft responses to notices, deal with paperwork, attend meetings, and present your case legally to the auditor.
Field audit
Hiring a tax lawyer is one of the best ways to protect your interests during an IRS audit. While IRS agents are usually friendly and helpful, they are also trained to gather information that will be used against you during an audit. This includes questions that may seem innocent, but are designed to dig for information. If you don’t know the answer, you risk being reported to CID, the Internal Revenue Service’s criminal investigation division. With a tax attorney by your side, you’ll have less chance of having your honest mistakes exposed.
A tax attorney will be able to negotiate on your behalf, whether it’s to settle for less or to arrange for repayment plans. They may also be able to negotiate an offer in compromise, reducing your federal tax liability to an amount you can afford. They can also try to get your debt classified as CNC (cash-neutral debt). This means that you don’t have to pay the full amount, but you can get a grace period before paying off the debt.
Correspondence audit
A correspondence audit is a common IRS audit type. This type of audit occurs when a taxpayer has a high income or makes a large amount of charitable contributions. In contrast, an in-person audit takes place when a taxpayer has multiple issues or has made unusual transactions during the year.
During an audit, the IRS may request documents to verify a taxpayer’s income or expenses. They may also expand the categories that they are examining. Correspondence audit letters usually include a deadline for a taxpayer to respond. If the taxpayer is unable to meet the deadline, they can call the IRS to discuss the audit further.
A correspondence audit can be an efficient use of IRS examination resources. The auditor will typically ask taxpayers to submit copies of the documents requested. This is in contrast to a phone call, which requires taxpayers to provide the auditor with their original documents.
Your rights
Whether you are facing a tax audit or an administrative appeal, an experienced tax attorney can protect your rights and negotiate on your behalf. The attorney can discuss various options with the IRS auditor, including repayment options and sending additional information. If you believe you are being overcharged, a tax attorney can dispute the charges to reduce or eliminate them. In addition, a tax attorney can advise you on what you can do to minimize your tax liability.
When facing an IRS audit, many taxpayers may feel helpless, and that’s when hiring a tax lawyer is essential. There are many statutes and rights that protect taxpayers during this process, including three taxpayer Bills of Rights. A New York tax attorney can explain your rights and how they apply to your situation.
Your interests
An experienced tax attorney can protect your interests as a taxpayer during an IRS audit. These lawyers know how to deal with the IRS and how to provide the right information to the revenue agent. Moreover, they have extensive knowledge of state and federal filing requirements. In addition, they know how to handle the complex negotiation process that takes place during the audit.
Whether you’re facing a face-to-face audit or an online audit, you need an attorney to protect your rights. While the auditors are not on your side, they are paid to find problems and information that will cost you money. Moreover, if you’re suspected of tax fraud, the IRS will file criminal charges against you. That’s why it’s vital to hire a tax attorney who can protect your rights and interests.
