IRS Tax Audit Attorneys Helping Clients Nationwide Navigate The Audit Process
A tax audit is an intrusive, difficult experience. If you have received notice that you will be audited, your next step should be to contact a lawyer. Many individuals and businesses facing an audit will first retain an accountant or other tax professional. While these professionals can provide skilled guidance, they may also be forced to divulge financial information you believed to be confidential. When you hire a tax attorney in your audit defense, your information will be protected by attorney-client privilege.
At Goldburd McCone LLP, we guide individuals, businesses and nonprofit organizations through the audit process. Our straightforward, strategic approach to all areas of tax law has led to favorable outcomes time and again.
Allies In All Aspects Of The Tax Audit Process
An audit is an extremely delicate matter. If the IRS or New York State Department of Taxation and Finance believes that you made erroneous deductions or failed to report income, it could substantially increase your tax bill while also levying penalties and interest. In the most serious cases, it could even bring criminal charges.
A tax lawyer will compile all the evidence and present your position in the most favorable light possible. We know that an audit is grueling, and we will work to ease your burden and make the process as painless as possible. If the IRS does claim that you or your business owes additional taxes, we can present an appeal to the IRS Appeals Office if necessary.
We dedicate our firm’s resources to helping clients mitigate risk in situations such as:
- Residency audits for people who have recently relocated out of New York to a low-tax state (and compliance consulting prior to moving from New York)
- IRS individual income tax audits in New York state, New Jersey and Connecticut
- IRS audits relating to personal expenses as business deductions
- Providing legal support and guidance during sales tax audits, defending vigorously based on evidence and case law
- Nexus audits with regard to Amazon or any other e-commerce situation
Additionally, our lawyers’ familiarity with tax planning strategies helps high net worth individuals take advantage of the legal loopholes designed to decrease tax obligations.
Answers To The Questions You Have About Tax Audits
There are so many misconceptions surrounding tax audits that it is hard to know what is true and what is false. Fortunately, a tax audit attorney with our firm can provide the correct, accurate information that you need. Below, we have answered some of the questions that we hear most frequently.
What Triggers A Tax Audit?
A number of details can trigger an IRS tax audit, including:
- Differences between your declared income and the IRS’s calculations
- Substantial digital transactions
- Businesses that frequently handle cash
- Errors in your tax return
- Large foreign assets
Many audits involve more than one of the aforementioned factors.
How Far Back Can Your Taxes Be Audited?
In most cases, the IRS can go back up to six years for an audit. However, for suspected tax evasion or fraud, the period extends indefinitely.
What Are The Potential Penalties You Could Face After Being Audited?
Most penalties involve paying back taxes plus a civil fine of 20-40% of the unpaid taxes. High-asset individuals or corporations with substantial tax penalties face higher fines. However, if the IRS recommends a criminal investigation, the penalties could include years of prison time.
What Should You Do After Receiving An Audit Notice?
If you receive an audit letter, you must respond to the Internal Revenue Service within 30 days. Do not volunteer any information; instead, consult a lawyer who can advise you of your rights in your tax situation.
What Are The Different Types Of IRS Audits?
Tax audits fall in three categories:
- Correspondence audits: The simplest form of auditing, usually conducted by mail. The IRS will request additional information and clarifications regarding specific items on your tax return, such as income, expenses, or credits claimed. You’ll need to send the required documentation to support your tax return entries.
- Office (desk) audits: More in-depth than correspondence audits, office audits require you to visit an IRS office. An auditor will review your records and ask questions about your return. It’s focused on more complex issues than can be addressed through correspondence.
- Field audits: The most comprehensive type, field audits involve IRS auditors visiting your home, business, or accountant’s office to do a thorough review of your financial records. They will examine a wider range of information and may look into your lifestyle to ensure it aligns with the income reported on your tax return.
For all audits, you should have an experienced tax attorney to assist you.
If The Auditor Proposes Tax Liability Adjustments, What Will Happen?
If an auditor concludes that your tax filings require modifications and suggests adjustments, this means they believe your tax liability should change to reflect their findings. These adjustments might result in you owing more tax, being entitled to a refund, or having no change at all. If additional tax is due, the auditor will provide a detailed explanation of the reasons for the adjustment and the specific areas of your tax return affected.
What Happens If You Still Owe Taxes After An Audit?
If you have outstanding taxes due after the audit concludes, you should address this liability promptly. You can do this by having a tax audit lawyer arrange a payment plan with the IRS or by paying the amount in full to avoid potential penalties and interest.
What If You Disagree With The Audit Results?
If you do not concur with the conclusions of the audit, you have several avenues to challenge the findings. These can include requesting a further review by the IRS, filing an appeal or seeking mediation or arbitration.
Why Hire Goldburd McCone LLP For Your Tax Audit Matters?
Our intelligent attorneys have in-depth, extensive experience representing individuals and corporate entities in audits and other tax controversies. We have offices in New York, New Jersey, Florida and California for your convenience. Most importantly, we have a proven track record of successful results for tax issues.
Working With Nonprofits That Are Facing Audits
The IRS frequently audits charities and other nonprofit and tax-exempt organizations. These audits are complex and often time-consuming. Having successfully represented many nonprofit organizations in audits, our lawyers understand how the tax code relates to these organizations. We will prepare appropriate documentation, answer any questions and show the IRS that your organization is complying with applicable regulations.
Schedule Your Initial Consultation With An Experienced Tax Audit Attorney Today
No matter the type of audit you are facing, call our Manhattan law firm at 212-302-9400 or toll-free at 844-653-2873, or complete our email form to get tax help.