Everything You Need to Know About IRS Audit Representation

irs audit representation

It’s easy to panic when you receive a letter from the IRS.

Just filling your taxes on time each year can feel like a hard enough task, but sometimes things can get a lot more complicated than that.

Each year, the IRS takes on about one million audit cases.

That means they go to individuals and businesses around the country and ask to see hard evidence of things like income and assets.

If mistakes, inaccuracies, or downright lies are found during this process, an individual could face serious penalties.

If you run into trouble with the IRS, things can get serious.

That’s why it’s essential to hire proper legal counsel if you find yourself in this situation.

Read on, and we’ll walk you through everything you need to know about IRS audit representation.

Why Would You Recieve An Audit Notice?

The main purpose of an audit is for the IRS to ensure that they’ve received the proper amount in compensation from an individual or entity.

There are a few reasons an audit might be called, but this is always the end goal of this kind of investigation.

If you received an audit notice, it may be because of suspicious activity or accounting in your tax return.

This might have been on purpose if you were intentionally trying to save money on your taxes.

You may have approximated much of your income, resulting in rounded numbers that don’t feel ‘real’ or true to your actual financial situation.

A lack of rounding is one big red flag for the IRS.

You might have also tried to report many losses in your tax return in an attempt to lower how much you owe to the government.

Putting personal losses on your tax return can trigger unwanted attention from the IRS.

You should only put losses you incurred as a result of your business operations on your tax return.

Of course, there’s a chance there were errors that were committed accidentally, not intentionally.

Maybe you don’t check your numbers well enough, did your math badly, or otherwise plugged in numbers that were not accurate to your real financial situation.

Unfortunately, this can be a very costly mistake.

Possible Penalties

No matter the reason your tax return was inaccurate, some serious penalties can be on the way.

If an audit turns up evidence of unaccounted for income, the IRS will take their share from you– and make you pay big for the inconvenience.

There are several different tax-related crimes one could be charged for.

Simple mistakes are likely to incur financially harmful penalties, like high fines.

But more serious charges, like substantial underreporting or negligence, could even land you behind bars.

Failure to file a tax return at all, or to file a fake tax return, is considered fraud.

You could find yourself in serious hot water with the federal government if you aren’t careful.

Even if you aren’t guilty, things can get quite hairy when the government arrives to comb through all your interactions and finances.

You need to be prepared for anything.

Why You Need IRS Audit Representation

Getting audited can be one of the most stressful times of a person’s life.

It’s something you don’t want to go through alone.

That’s why hiring IRS audit representation can be an essential step.

What does this representation do?

It stands in on behalf of a taxpayer during the long and trying audit process.

Under the law, a taxpayer is allowed to have an authorized representative stand-in on their behalf.

This can’t be just anyone, they must have specific credentials.

An audit representative will be highly knowledgable of tax laws and experienced in working with the IRS.

They will be able to develop a strategy that will help you best navigate the complicated and involved process of the IRS audit.

Advantages Of Hiring An Audit Representative

Audits are complicated, and there are many things that a representative can do for you during this time.

For one, they’ll be able to handle all the paperwork.

If you thought doing the paperwork for your taxes was complicated, you won’t begin to be able to face the trying process of audit paperwork.

Gathering all the needed documents, compiling evidence, and keeping track of deadlines can be a full-time job in and of itself.

Luckily, an audit representative has gone through these steps numerous times before and can keep on top of things for you.

They’ll also serve as your mouthpiece to the IRS.

There is a lot of back and forth communication required in an audit and the whole process can be quite time-consuming.

It can be a huge help to have someone running the communications for you.

It allows you to continue with your life in some regard, without all the massive interruptions.

A representative will also defend you and stand up for your rights.

If the IRS tries to take any action they don’t have a legal right to, your representative will know and be able to step in.

They will ensure you don’t end up paying for more than you need.

And they will be able to help strategize for you if you have made a mistake on your tax return.

They will know how to best mitigate the damage this might cause.

Concerned About Your Tax Situation?

If you’ve received an audit notice or are worried that you might, you really should consider IRS audit representation.

This kind of help can make a world of difference as you navigate the risky and complicated audit process.

Have more questions about the help you could receive?

Call us anytime for assistance.

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