Full blown, old-fashioned audits have become rarer and rarer. You know the kind…everyone’s fear, where you are called into an IRS office for a face to face meeting. Unfortunately, this type of audit still occurs. The first thing to remember is to relax. Often these notices do not mean you are in trouble or did something wrong. They may be random audits that spot check taxpayers. Sometimes there is something that causes concern for the Government and there is a reason you are being asked to come in. It is imperative to seek professional assistance in defending an audit. The audit process is complex and needs to be played like a chess game. There are procedural rules that if violated, could hamper your arguments in defense of a given deduction. Moreover, a tax attorney with experience in audit defense can put your mind at ease by spelling out worst case scenarios and working on a game plan to address the issues raised in the audit.
Lastly, always keep in mind that no matter the outcome, the IRS can be very willing to accept a reasonable payment plan for any amounts owed. In some cases, you may be able to work out an agreement with the government based on your financial circumstances to pay less than the full amount owed.
Bottom line…if you get an audit notice, don’t panic. Call our office and we can review your notice and the tax return at issue and discuss options and a plan to make sure your rights are protected, and you achieve a good outcome.