Business Tax Audit Representation
IRS Audit Defense for Businesses and Individuals
Tax Representation Done Right
What to Do When You’re Facing a Business Tax Audit
A business tax audit can happen at any time, so it’s smart to talk to an attorney and CPA who handle this kind of case on a regular basis. Or maybe you disagree with the IRS audit workpapers, and you’re wondering what your next steps should be. Perhaps IRS Appeals, or U.S. Tax Court? Contact Us for a Zoom Consult.
How Do I Know If My Business Has Been Audited?
If your business is being audited, you’ll receive a notice in the mail. Watch for letters addressed to your business from the IRS, open them right away, and read them carefully. These notices give you more detail about the situation.
Keep in mind the IRS will never call you or send you an email. Instead, a call or email from someone claiming to be the IRS is most likely a scam, so don’t respond to these messages. If you’re concerned, contact the IRS directly to report a scam or Contact Us.
I Received an Audit Notice. Now What?
Understanding Your Notice
The letter you receive will give you more information about what’s happening. It’s important to remember that an audit notice doesn’t necessarily mean your taxes are wrong, or that you owe the IRS money.
There are many types of notices, and many of them are automated. Because notices aren’t always accurate, you should work with a tax attorney or accountant to make sure you don’t pay more than you should.
What Your Notice Means for You
Your notice will explain what kind of review the IRS plans to conduct. Regardless of the type you receive, you should speak with a tax professional. If the IRS made an error, a tax accountant can help organize your documents and show your taxes were filed correctly. Or if your returns weren’t accurate, an expert can help reduce what you owe, or set up a payment plan that works for you.
If your taxes are correct but the IRS hasn’t accepted your proof, it’s time to bring in a tax attorney to defend your business. With the right help, you can resolve things with no lasting damage. Contact Us.
What Happens Next?
There are four main types of audits, and each one is different. Some wrap up quickly and easily; others take more work. In some cases, you can resolve things without ever meeting or speaking with an IRS agent. What happens next depends on which type you’re facing.
Office Audit
If your case calls for an office visit, it usually means a few documents won’t be enough, and the IRS has follow-up questions that mail alone can’t answer. You’ll need to visit a local IRS office in this case.
A tax professional can help make sure your paperwork is in order at this stage. With the right documents, an office visit can wrap up in just one day. But if you can’t find what you need, or the IRS raises questions you’re unsure about, a bigger review may follow.
Field Audit
Here, an IRS agent will actually visit your business. The agent will typically ask a wide range of questions about your return and your day-to-day work. Since this approach takes more time and resources than others, the IRS usually saves it for cases where the issues look big. Because the agent may ask about any part of your business, you should always bring in help, including a tax accountant and attorney. Contact Us.
Correspondence Audit
Here, the IRS asks for extra documents you either left out of your return or may have lost. Part of your filing may have been unclear, so the IRS wants more proof it was correct. Handled properly, this type resolves quickly. But if you find documents showing an error, it’s best to contact a tax professional before responding, since fines and penalties may apply.
Randomly Selected Review
This last type isn’t tied to anything specific on your return. Instead, the IRS selects a group of businesses at random to keep its process fair. Though random, these reviews are still thorough — you’ll need to back up every line with proof. If you’re chosen for this kind of review, Contact Us.
Why Bring In a Tax Attorney and CPA?
An IRS review means the agency is taking a closer look at your personal or business taxes. Defending your position without professional help can be tough on your own. Our attorneys and CPAs have extensive experience handling complex business tax audit cases. Contact Us.
