March 1, 2021
Most people agree that the worst thing that could happen to you regarding taxes is being audited by the Internal Revenue Service (IRS). An audit by the IRS is typically invasive, extensive, and generally uncomfortable to experience, as a tax audit lawyer in Hanover, MD, such as from Crepeau & Mourges, can explain. Tax audits are conducted to verify that the information provided is accurate and does not necessarily mean that they are incorrect. However, typically the returns audited are ones that are suspected to have errors and inaccuracies.
Who Can be Audited?
In short, anyone has the potential of being audited. Whether you are a business, a high-earning individual, or a low-earning individual, you could be chosen by the IRS for an audit. The IRS sometimes chooses who to audit based on statistics from a computer scoring system that flags returns that are questionable because of things like drastic changes from previous years, such as income. The IRS will typically audit only for the past two years of returns, but in some cases has the right to go back six years.
What does an audit entail?
The process of an audit starts with initial contact from the IRS letting you know that you will be undergoing an audit. The audit will then be conducted either by mail or with an in-person interview. Because the purpose of the audit is to verify that your return was accurate, you will be asked to provide documentation that explains why you took the position you did in your return. It is important to provide all of the information as asked by the IRS auditor. You may even want to work with a tax lawyer who knows the process and can work directly with the auditor on your behalf.
Work with a Tax Audit Lawyer
If you are being audited, there is no time too soon to talk with a tax audit lawyer. A lawyer can discuss your situation, the audit process for your specific circumstances, and what to expect next. You may not be able to find an ally more experienced and helpful than a tax audit lawyer, because they know the laws and process for taxes and audits. When you are being audited as a business or individual, you find it beneficial to have the legal guidance of a lawyer. Contact a law firm today to schedule an initial consultation to discuss your situation and next steps.