An audit or examination is an IRS review of your books, receipts, and records. Unlike in other areas of the law, the IRS thinks you’re guilty until you prove your innocence. Because the auditor or examiner will have a detailed understanding of tax law, you may want to strongly consider hiring a tax attorney to not only level the playing field but be able to preserve the strength of your case should you be unable to reach an agreement with the IRS. Because a tax attorney has oversite of your case at the audit stage, that same attorney will represent you in tax court, should the need arise.
What Triggers an Audit or Examination?
Returns are selected for audit or examination in a number of ways — some that you can control and some that you can’t. Some selection is simply random. Other returns are manually pulled when your tax return doesn’t match your 1099s, W-2s, or other statements. Other selection is based on computer scoring of how closely your income and expenses match similar returns.
What Happens in an Audit or Examination?
There are different types of audits or examinations. The first is by correspondence where you will be asked to send additional documents to the IRS. For more complicated issues, you may be asked to come to a local IRS office. If you run a business, the IRS may also come to your offices to perform an on-site audit.
We can help you gather your records and prepare for the interview so the Revenue Officer sees the supporting information he or she needs.
To schedule a consultation with an experienced tax attorney, contact Erdmann Law, PLLC, today. We serve the greater Orlando area and beyond.