Although tax day is two months away, this is the time of year when individuals, couples and businesses spend the time to prepare their taxes. The focus is typically on getting them done and not what could arise, such as a tax audit. This process is designed to uncover possible fraud; however, when one is accused of such conduct, it is important to consider the defense options available.
Because the audit process can be overwhelming and confusing, a legal tax professional can aid in the process, helping an individual explore their options when it comes to assert a defense to any issues that may come up. This allows for communications with the IRS, gathering of necessary information, the attendance to any required meetings and ensures that all necessary documents are submitted.
It should be noted that less than 25% of the taxpayers audited avoid paying additional taxes. This means that considering negotiations is often a beneficial step to take. This can help limit the damages that result.
Once the causes for the audit are understood, it is possible to move forward with a defense. If an error was made and were the result of a tax professional, such as an accountant, this could be documented and communicated with the IRS. This could help resolve the issues at hand, even avoiding further damages.
Finally, it is possible to appeal any decisions that are made by the IRS. A taxpayer can go to tax court and appeal the decision made.
It is far more common to entrust a professional to prepare one’s taxes than it is for an individual to complete them on their own. Thus, it is imperative to consider the possibility that a tax professional may be the cause of any issues arising from a tax audit. A legal professional can help you better understand this process, how to initiate a defense and how best to protect one’s rights.