Many taxpayers are so upset at the prospect of an IRS audit that they consider contacting an IRS audit attorney immediately. In most cases, according to a Tennessee tax attorney a taxpayer can obtain a “outside” review of the audit and findings before making any decisions. In some cases, the audit is a paid for project. The IRS will not tell taxpayers what kind of results they expect from the audit. Therefore, it is essential that taxpayers understand what to expect before even thinking about contacting a tax law attorney or having one do so. The Tennessee tax debt lawyer will provide a tax professional with information and advice necessary to represent a taxpayer in a potentially difficult situation.
If an audit triggers a tax payment resolution, the taxpayer must decide whether or not to cooperate with the IRS. In most cases, the audit is a requested result of an IRS matter. This means that the audit is being requested because the taxpayer is delinquent on his or her taxes. In this case, the taxpayer should contact a tax lawyer right away. A tax lawyer will review the audit report and advise the taxpayer of his or her options. Some advice that the tax lawyer may give the client:
The audit will reveal to the taxpayer certain information that will be damaging to him or her. For instance, an audit might reveal that the taxpayer made errors on his or her tax return or did not file his or her return at all. The IRS could issue an order for repayment or could issue a penalty for the non-payment. In either case, the taxpayer could lose important tax deductions. The audit itself cannot permanently harm a taxpayer.
The IRS audit and findings are not admissible in court. Although most taxpayers can recover any tax debts that were improperly assessed by the IRS, doing so would require a very complex and lengthy process in which the tax payer would have to litigate this matter before the courts. Moreover, tax attorneys are often unsuccessful in their attempts to recover tax debt from the IRS. The tax debt lawyer might be successful in recovering some debts from the IRS, but the chances are that the IRS will ask for even more money.
It would be extremely unethical for a taxpayer to disclose his or her audit review in any way. The audit report and all recommendations are confidential and are not intended to be shared with anyone outside of the IRS. Even if you have an IRS agent come to your house to interview you about your tax return, it is illegal for you to disclose anything regarding the audit in any way. You should not discuss what is said during the interview with anyone, including your tax attorney. The audit report is an important and crucial document that is meant to provide information to the IRS about your tax payments. If you share anything about what is contained in the audit report, such as the recommendations or what you consider to be a negative finding, it can seriously damage your ability to get your tax debts forgiven or reduced.
The audit procedure itself is usually a very simple one. You generally have up to ten days after the taxpayer’s notice of audit to request a hearing by the IRS to resolve any issues with the Internal Revenue Service’s initial examination. If no settlement can be reached between you and the IRS, then an appeal can be filed with the US Tax Court. If the tax debt relief request is denied, the taxpayer may ask the IRS to issue an Order of Waiver, which essentially says that the IRS is allowed to continue collecting the debt from the taxpayer, but that the tax payer is now authorized to pay the IRS directly. If you want to learn more visit the nearest tax law attorney office in your area.