How To Survive A Tax Audit
- May 18, 2019
- Posted by: Platinum Tax defenders
- Category: Tax Relief
Receiving a notice of tax audit from the IRS will send you into a state of panic. However, you should stay calm and call a tax attorney. First things first, when you receive a tax audit notice from the IRS, make sure it’s not a mistake. Should you be unsure whether the tax audit notice is correct, consult a tax attorney from Platinum Tax Defenders. At Platinum Tax Defenders, we work with both IRS attorneys and x-IRS attorneys. Our tax attorneys are knowledgeable in the processes of the IRS and can help you survive during a tax audit. A tax attorney can help you prepare for your tax audit.
With a tax attorney on your side and these tips below, you can survive a tax audit.
Double Check Your Tax Returns
During a tax audit, the IRS will first check the income and credits from your most recent tax returns. The IRS reviews your returns because taxpayers attempt to reduce their tax responsibility by claiming false deductions, credits, and exemptions. A tax attorney can be especially helpful if the IRS finds false claims on your tax returns. Expert tax attorneys carry an in-depth knowledge of tax law. If false claims exist on your tax returns, a tax attorney can help you prove them to be genuine. Frequently, taxpayers make false claims due to a calculation error. A professional tax attorney should handle even the smallest of mistakes on your tax returns.
Tax Attorneys Can Delay The Tax Audit Process
One of the most popular tricks tax attorneys use to deal with tax audits is delay the audit process. Every year, taxpayers survive their tax audits in large numbers by postponing the audit process. You can pause the process by providing a reason for why you need more time to organize your records. Missing receipts and invoices can be another good excuse to delay the process. Ask for more time by stating that you need more time to arrange receipts, invoices, and expenses. Often, the IRS will agree to give the taxpayer more time if it means the audit process will be smoother.
Refrain From Hosting The Audit Yourself
Another way to survive a tax audit is by not hosting it yourself. Keep the IRS from holding the review at your business or home. Instead, go to the IRS office directly to handle the audit. Another option is to have your tax resolution professional handle your audit. The tax experts at Platinum Tax Defenders have years of successfully navigating our clients through tax audits.
Don’t Share More Information Than You Need To
When you’re in the middle of a tax audit, only share information for which the IRS is asking. Refrain from speaking any more than necessary during the tax audit. If you’re in doubt on what to say or how to handle your tax audit, consult a tax attorney.
Manage Your Expectations
When you go into a tax audit, don’t expect to come out of it without owing something. According to various reports, the average tax adjustment for an IRS office audit is $4,000. The average tax adjustment for a field audit (not done in the IRS office) is $17,000. Enlist the help of a tax attorney to ensure you get the best possible tax audit outcome.
Don’t Share Prior Years’ Tax Returns
Refrain from providing the auditor with copies of other years’ tax returns. If you offer previous tax returns and the auditor finds something they don’t like, they’ll make adjustments in those years. Make sure you don’t bring any document to the audit that does not pertain to the year under audit.
Negotiate The Audit
Inquire with the auditor about disallowances he or she is considering, and defend your position. Don’t, however, attempt to negotiate the amount of taxes you are to pay. Focus on negotiating your taxes issues, instead. For example, if you feel a particular deduction should be allowed, advise the auditor of that. Anytime you’re negotiating with the IRS it’s advisable to have a tax resolution expert on your side.
You Can Recreate Records
Taxpayers under audit are allowed to reconstruct any missing tax records, such as missing receipts and other documents. Before the tax audit, organize all your files for which the auditor might ask. Being organized will impress your auditor and show that you’re serious about your case.
Consult A Tax Resolution Expert
When attempting to survive a tax audit, never do so alone, especially if the term “tax fraud” is brought up. If tax fraud comes up during your audit, seek out the help of a professional tax attorney. If at any point you feel your tax audit isn’t going well, you can request time to consult a tax attorney. Also, if you think the auditor is treating you poorly, you can ask to speak to their manager.
Appeal Your Tax Audit Result
Upon receiving your tax audit report, you may not agree with the IRS’ findings. You also might not understand the results of the report. If something is confusing or if you aren’t in agreement, meet with the auditor. At this stage of the tax audit process, it’s beneficial to have a tax attorney on your side. If you don’t agree with the results, you can file an appeal within the IRS, or go to tax court. Before attempting to take the IRS to court, it’s highly advisable to seek out the help of a professional tax attorney. Platinum Tax Defenders works with tax attorneys and x-IRS tax attorneys who are intimately familiar with the IRS and audits.
Get Help With A Tax Audit From A Tax Resolution Expert
If you’re facing a tax audit, call Platinum Tax Defenders today. Platinum Tax Defenders have years of experience handling tax audit cases for thousands of clients. The expert tax relief team includes tax attorneys and x-IRS attorneys who are familiar with tax law and the IRS. Before you go into a tax audit with the IRS, make sure you consult a tax attorney. Tax relief experts can provide you with the help you need to survive your tax audit successfully.