The IRS Provides 3 Categories for Guidance:
- IRS regulations which are generally binding. Even reliance upon temporary regulations will not result in assessing penalties.
- The IRS publishes a number of sources known as “official guidance.” This includes Revenue Rulings, Revenue Procedures and a variety of announcements and notices included in bulletins. In theory, taxpayers cannot be assessed penalties and taxes for following this official guidance.
- The IRS publishes its “unofficial guidance.” Unofficial guidance can include website articles, press released, various forms, tax instructions and its FAQs. Though the IRS publishes this information, it also maintains that taxpayers cannot rely upon it. If a taxpayer relies upon this information and later finds out it is wrong, they will still face penalties.
Guidance changes over time
What is even worse, all of these materials are subject to change without notice. This means you could follow the unofficial guidance of the IRS and still face a tax audit by the IRS.
When you have questions concerning tax issues such as what forms to file and what deductions to take, professional advice and representation may be in order. An experienced attorney can assist and, when necessary, raise a defense to the IRS.
When it’s tax time, the last thing you’ll want to worry about is getting audited. It’s a real possibility, which is why when this happens, immediately retain an attorney for tax audit help.
Lawyers that are trained and seasoned can make your tax process a breeze, and can defend and represent you during an audit.
To find out why these professionals are so necessary, consider the following information.
1. Tax Attorneys Have a Better Handle on the Auditing Process
Just 1 in 60 people are audited each year. Since this is such a paltry number, it’s hard to nail down a rhyme or reason for when and why people get audited.
You need to bring in a lawyer to help you, since they have a much better handle on and understanding of audits.
There are many terminologies that come with the territory that you might get bogged down with and lost. They can also take the temperature of the situation, so to speak, to assess what the Internal Revenue Service is assuming about your taxes.
This part is important, since they won’t be forthcoming during the investigation until they’re ready to present their findings. Your lawyer can analyze how deep they’re looking into your taxes to let you know whether the IRS thinks it’s a criminal situation or an oversight.
Having this preemptive knowledge will be valuable in crafting a defense against the audit.
2. You Could Be Subject to Penalties, Fines and Tax Fraud Charges
Because tax evasion and tax avoidance are very real issues, you need to be certain you are getting all the legal help you need.
An audit could be about clearing up a mistake, and you could get a small fine, or the IRS could hit you with expensive penalties and worse — criminal charges.
With so much on the line, it’s only right that you have a lawyer familiar with what entails tax evasion and tax avoidance, so you can present evidence to the contrary.
People that evade taxes account for more than $130 billion in unpaid taxes, so expect the IRS to be aggressive on these sorts of matters.
Do you know how the IRS defines tax fraud vs. negligence? Read more here.
3. There Are Different Types of Audits
Besides terminology and legalese, there are also different audits.
Some examples include a correspondence audit, an office audit, and field audit. These audits all have their differences, and your attorney can help differentiate them and assist you with whichever type you are subject to.
With a correspondence audit, the IRS will send you letters in the mail detailing mistakes, usually minor, that need to be corrected. You can take this correspondence to your lawyer, so that the two of you can decide if mistakes were actually made.
From there, they can be corrected, and your lawyer will help you send correspondence to the IRS.
An office audit requires you to come into a local IRS branch to go over records and correct or explain discrepancies. This audit is a lot more complex and involved, and you will definitely need the help of an attorney.
You will generally be given an appointment for this office audit, and an agent that is assigned to your case.
With a field audit, the IRS will come out to your home or office. You’re able to request an office appointment instead, but this might prompt the IRS to think you’re being elusive, so consult an attorney for advice on this.
4. Getting Tax Audit Help Cuts Out Mistakes
The last thing you’d want to do is have your taxes investigated for mistakes, only to then also make mistakes on your audit defense.
When you have the help of a lawyer, they’ll be able to reduce the mistakes you make, so that your audit defense is ironclad. This expedites the audit process and helps to make sure you get success and results.
5. You Will Have More Negotiating Power
Tax attorneys are also great negotiators, which can get you the best-case scenario for your tax audit.
Having a lawyer can help you negotiate the ideal payment plan or other form of settlement. These lawyers will help you get organized and send documents to the IRS as requested.
When the IRS requests proof and documentation, it’s important that you send only exactly what they are asking for, and nothing more. Your lawyer will help be the go-between in this process, so you can protect yourself and negotiate accordingly.
Also, if the IRS moves forward with criminal charges, your attorney can then represent you in that regard. Since you gave them a head start in understanding your situation by helping you with the audit, they will also be better able to defend you against criminal charges.
Therefore, it’s so important to do your research and find the absolute most dependable tax attorney that you can find.
Get the Tax Audit Help You Need
These tips point out exactly why you need to get the help of an attorney for your tax audit help.
Because you have so much on the line, you’ll need the help of the best attorneys in your area.
We’d love to help you out.
The Silver Tax Group is experienced with audits, tax evasion cases and any other matter you need help with.
Contact us 24 hours a day and 7 days a week to get a free evaluation for your case.