If the Internal Revenue Service (IRS) is auditing you, being prepared is crucial. Don’t let the IRS pressure you into paying or settling tax matters you don’t agree with. If you’re facing an audit, Attorney Ronald Arthur Stearns, Attorney at Law is ready to defend your rights. With nearly 30 years of litigation experience, he is a dedicated advocate for taxpayers and will stand up against the IRS to protect your interests.
We also defend against PPP loan audits. See our overview of PPP loan audit defense to learn more.
The IRS is highly efficient, processing nearly 240 million tax returns annually and conducting hundreds of thousands of audits each year. While many audits are random, triggers can lead to targeted investigations.
Even if you believe your returns are accurate, having a tax attorney can be crucial. Small errors in complex returns can lead to costly penalties or even prosecution.
Whether you’re facing a personal or business audit, Ronald Arthur Stearns, Attorney at Law offers expert tax audit defense. Our experienced team will assess your case and guide you through the process, working to prevent penalties and resolve issues effectively.
If you’ve received an audit letter, contact our office today at 210-853-2135.
You Might Need an Austin IRS Audit Lawyer
Make sure you have a strong defense if you’re being audited. Contact our experienced Austin tax attorney today. Many IRS audits happen at random since the IRS lacks the resources to audit every tax return. However, the agency is always on the lookout for probable cause. If you’re wondering why you’ve been selected for an audit, it may be random or due to one of these factors:
Under-reported Income
The IRS trusts tax return filings but uses automated checks to ensure that the income stated aligns with actual earnings. The IRS cross-references W-2 and 1099 forms with your return, so it’s essential to include all income. Failing to report income could be considered tax evasion. Consider if any of the following apply:
- Interrupted W-2 income due to changing jobs or tax codes during the year.
- Missing 1099 income from side gigs or additional work.
- Ignoring interest income from savings and investments.
- Neglecting to report capital gains from stock portfolios, cryptocurrency holdings, or property sales.
Business Losses or Large Deductions
Losses happen, and deductions can benefit businesses, but unusual patterns can trigger an audit. If your deductions are significantly higher than industry norms or if your business reports losses for multiple years, the IRS may scrutinize your tax return.
Claiming Tax Relief for Which You’re Ineligible
Tax relief is not only for businesses. Individuals can also benefit from programs like the Earned Income Tax Credit (EITC) or the American Opportunity Tax Credit (AOTC). However, it’s vital to ensure all claims are accurate. Claiming benefits you’re not eligible for is considered tax fraud.
Something Doesn’t Add Up
Simple errors, like numbers not adding up, can trigger an audit. While minor mistakes often lead to correction requests rather than audits, consistent inaccuracies could prompt further investigation.
Misreported Foreign Income
Foreign assets and income complicate tax returns. Taxpayers with foreign holdings should work with a tax attorney to navigate complex laws. U.S. nationals might have tax liabilities even when working abroad, such as reporting foreign bank accounts with assets over $50,000 using Form 8938.
You Have Received a Tax Audit Notice – What Now?
Upon receiving a tax audit notice, don’t panic. If your tax return is accurate, the audit may only require providing additional information. If you’ve used a Certified Public Accountant (CPA), they can often assist with sourcing the required documents and may resolve the issue with minimal fuss.
Correspondence Audits
Correspondence audits are the simplest, usually involving requests for more information. Often, these audits can be handled via email without the need for professional assistance unless you already have a tax attorney.
Office Audits
In more serious cases, an IRS audit may require a visit to your local IRS office. During this audit, the agent will inspect your records for inconsistencies. Having a tax attorney accompany you can be beneficial, as they can help eliminate errors and ensure compliance with tax law.
Field Audits
Field audits are the most serious and involve IRS agents visiting your home or business. It’s highly advisable to have a tax attorney present. You can request that the audit takes place at your attorney’s office, but this should be done only after consulting with your audit defense attorney.
Why You Need Tax Audit Defense in Austin
Tax audit attorneys provide specific advice tailored to each audit case. If you suspect an issue with your tax return, acquiring legal representation as soon as possible is crucial. The more time your attorney has to assess your situation, the better they can develop a strong audit defense.
The most common outcomes of an IRS audit include:
- A Settlement or Payment Plan: If you’ve underpaid your taxes, your attorney may arrange a way to make up the difference affordably.
- Civil Liability: If you owe taxes, your attorney may appeal the result or negotiate payment terms.
- Offer in Compromise: If you can’t pay your taxes, your attorney may negotiate a reduced settlement.
- Tax Court: In serious cases, the IRS may pursue civil or criminal proceedings. An experienced attorney is essential in these cases.
- No Further Action: Sometimes, audits conclude with no further action if no discrepancies are found
Effective Strategies for IRS Audit Defense in Austin
Navigating an IRS audit can be daunting, but having a knowledgeable IRS audit attorney in Austin can make all the difference. Our firm offers comprehensive audit defense services tailored to your specific needs. We provide thorough examinations, customized defense plans, and direct negotiations with IRS auditors to protect your interests.
Our strategies include:
- Detailed examination of IRS audit notices
- Customized defense plans
- Direct negotiations with IRS auditors
- Proactive identification of audit triggers
- Comprehensive review of financial records
- Timely responses to IRS inquiries
- Strategic use of legal precedents
- Collaboration with financial experts
- Focus on minimizing penalties and achieving favorable outcomes
Our Audit Defense Strategies Include:
- Thorough examination of IRS audit notices and initial assessments.
- Customized defense plans tailored to each client’s unique situation.
- Direct negotiations with IRS auditors to protect client interests.
- Leveraging extensive experience in tax law and audit procedures.
- A proactive approach to identifying audit triggers and addressing potential issues.
- Comprehensive review of financial records and documentation.
- Timely responses to IRS inquiries and audit requests.
- Strategic use of legal precedents and IRS guidelines in defense strategies.
- Collaboration with financial experts and accountants for comprehensive defense.
- Focus on minimizing penalties and achieving favorable audit outcomes.
Proactive Strategies for IRS Audits
Facing an IRS audit can be a daunting experience, but with a customized audit defense plan, you can navigate the process confidently. Our experienced team of IRS audit lawyers in Austin understands the complexities of tax law and is dedicated to developing a strategy that addresses your unique situation. By meticulously reviewing your financial records and identifying potential areas of concern, we create a robust defense plan tailored to your needs, helping to mitigate risks and achieve favorable outcomes.
Comprehensive Support Every Step of the Way
At our Austin audit defense firm, we prioritize clear communication and proactive solutions. From the initial audit notice to the resolution of your case, our goal is to provide you with comprehensive support. We will guide you through every step, ensuring that you understand your rights and options. Our customized approach includes:
- Thorough analysis of your financial documents
- Personalized defense strategies
- Direct communication with IRS representatives
- Ongoing support and updates throughout the audit process
With our tailored audit defense plans, you can rest assured that your case is in capable hands, allowing you to focus on what matters most.
Options If You Can’t Pay Your Tax Bill
When the IRS determines what you owe, and you are unable to pay it, it creates a lot of stress and anxiety. You might be concerned about your assets, the future of you and your family, or what will happen to your hard-earned business.
When you have a IRS audit attorney on your side you will be able to take advantage of a broad range of options that could help you to pay off your tax collections, or even have them reduced. It might not be as bad as it initially seems!
An attorney who takes the time to understand your case and explore your options will be able to advise you on what is possible in your case and what will bring the most benefits to you.
Your options may include:
Currently Not Collectible Status
If certain circumstances apply to your case, then your attorney may be able to have the IRS agree to place your entire IRS tax obligation on hold. You will not have to pay anything until your circumstances improve and you are able to make a payment.
Partial-Pay Installment Agreement
Your attorney may be able to secure an installment agreement, which will allow you to only pay a small percentage of what you owe initially, and then you will continue with an agreed payment plan.
Offer In Compromise
An offer in compromise could substantially reduce your IRS tax collections if you are eligible. Your attorney will fight to reduce things like penalties and interest so that you are left with a much smaller amount to pay.
Innocent Spousal Relief
You may be able to secure total or partial relief from your tax obligation if your attorney can secure innocent spousal relief. You may be eligible if it was your spouse or ex-spouse who was guilty of underreporting income or improperly claiming tax deductions.
Additional IRS Programs
The IRS has many more options available to individuals and businesses to minimize their tax obligations. Contact Attorney Ronald A. Stearns Sr. today and discuss all the options available to you based on the specific circumstances of your case.
You Need An Experienced Tax Audit Defense, Not An Accountant
Taxpayers have rights, and Attorney Ronald Arthur Stearns, Attorney at Law will leverage them to your advantage during an IRS audit. Many taxpayers mistakenly rely on unqualified individuals or attempt to represent themselves. Avoid these pitfalls by choosing an experienced Austin tax lawyer.
Attorney Ronald Arthur Stearns, Attorney at Law offers the expertise and representation you need. With extensive experience handling IRS cases, he can anticipate government actions and effectively navigate the audit process.
Attorney Stearns represents clients throughout Texas, as well as clients who need California tax defense.
Contact Our Austin IRS Audit Defense Attorney For a Strong Tax Audit Defense
With over 26 years of tax law experience, our firm combines legal expertise with an understanding of audit-related stress. We prioritize your best interests, whether dealing with the IRS or State Taxing Authorities.
The IRS is committed to collecting what’s owed, but we believe everyone deserves fair representation. From simple errors to complex cases, we guide you through every step of the audit process, ensuring the best possible outcome.
An audit won’t resolve itself. Our audit defense attorneys are here to ease the burden and pursue a fair resolution for you.
Contact Ronald Arthur Stearns, Attorney at Law now at 210-853-2135 to find out more about your options and to get to work on the best possible defense.
Frequently Asked Questions about IRS Audit Defense
What Do I Need to Know When Facing an IRS Audit?
If you are faced with an IRS tax audit, then your first step is to understand what issues need to be addressed. Are the IRS auditors simply asking for supporting documentation that is easy for you to provide? Or have you underpaid or underreported what you owe to the IRS office?
You will also need to have some understanding of audit methods and IRS examination. For example, usually, correspondence audits are carried out via email, they are usually focused on itemized deductions and do not require an in-person visit. These are the least serious and usually only require additional information to clarify your returns.
On the other hand, office audits require a visit to the IRS, and field audits require IRS agents to come to your business or home, these types of audits are usually much more serious.
All audits carry risk, if the IRS discovers tax code violations, there can be substantial consequences that are best avoided. You should therefore speak with a tax professional who can limit your liability.
What Are Common Issues with IRS Audits?
When it comes to tax problems and tax code violations, the most common issues that require assistance from an attorney include:
- Miscalculation of Tax Liability
- Failure to File IRS Forms
- Failure to Report Foreign Income or Offshore Assets
- Business Tax Violations
- Cryptocurrency Violations
Can I deal with an IRS Audit on my own?
If you are facing a desk audit as an individual, then you do have the option of trying to handle it on your own. However, we recommend that anyone facing an IRS audit seeks help from a lawyer. Tax law is extremely complex, and an audit can examine many years worth of tax records. An attorney will thoroughly assess the risk associated with your case and protect your interests. If you seek help quickly, the options available to you will usually be better.
What are my first steps after receiving an audit letter from the IRS?
After receiving an audit letter from the IRS, you should consult a Austin tax attorney as quickly as possible. If it is not dealt with in the proper manner you could receive additional interest and penalties. By asserting a strategic defense promptly you may be able to substantially reduce, or even avoid your liability.
How often do IRS audits lead to tax liability and penalties?
It’s hard to put a number on the amount of IRS audits that lead to tax liability and penalties. If there is evidence to suggest that there has been underpaid or underreported federal tax liability, or there is insufficient documentation to support your returns then you could be at risk
Can you fight an IRS audit?
As a taxpayer, you have the right to appeal your audit. You must file an official protest within 30 days of the date on the letter you received from the IRS. You will need to prepare your defense with your attorney, who will present your case and negotiate a solution.
How much does audit defense cost?
The cost of an audit defense will be highly dependent on the details and complexity of your case, and whether or not it needs to be negotiated in court. Contact Ronald Arthur Stearns, Attorney at Law today and we can give you an idea of what defending your case could cost.
Can you go to jail for an IRS audit?
Although the IRS does not pursue criminal tax evasion charges for many people, the penalties for those who are guilty are harsh. They will be required to repay taxes with an expensive fraud penalty, and there will be a potential jail sentence of up to five years.
What happens if you are audited and found guilty?
If you are audited by the IRS and found guilty then consequences range from large fines to criminal charges, as well as a lot of paperwork.
What should I do if I know I have underreported or underpaid tax?
If you are aware that you underpaid or underreported your federal tax liability then you need to take great care when responding to your IRS audit. The IRS expects people to address filing mistakes and if you fail to do so it could worsen your penalties. The IRS offers voluntary disclosure options, but they are only available to you prior to when the IRS starts looking into your returns. You should seek advice from an attorney who can advise you on your particular case.
What if I can’t afford to pay what I owe the IRS?
If you can’t afford to pay what you owe the IRS, you should speak to an attorney who can assess what your options are. They may be able to reduce what you owe or help you negotiate a payment plan.