Under Audit? What Every Taxpayer Should Know About IRS Tax Audits
I recently read an article on CNNMoney.com written by Beth Braverman titled “5 things to know about getting audited.” I am always looking for helpful resources for my readers, so I wanted to share this IRS tax relief advice with you. Here is a quick summary of the 5 tips discussed in the article.
1. Audits are on the rise
After filing your taxes, there’s always reason to wonder: Will the taxman come knocking? Well, the answer is maybe. The number of IRS tax audits increases every year. According to Braverman’s article “experts expect that trend to continue, what with the ballooning federal deficit and the additional $400 million earmarked for tax enforcement in 2010.” The IRS is constantly looking for ways to crack down on delinquent taxpayers. If you get audited this year it is likely due to your 2008 taxes because audit letters are usually delivered 18 months after the filing date.
2. Delaying can cost you the right to fight
I’ve talked about procrastination again and again. If you find yourself in trouble with Uncle Sam, it is important to take immediate action. You usually have 30 days after receiving your first notice to respond, otherwise you could be facing serious penalties from the collections department.
As mentioned in the article, if you can’t get your act together in 30 days “You have the right to ask for a postponement, and the IRS should grant such a request if you say you need the time to track down records.”
3. It can help you to have a pro on your side
When it comes to dealing with IRS problems, it helps to have a professional tax attorney or certified tax resolution specialist on your side. Let them provide you with necessary tax help in sticky situations such as an audit. Although 75% of tax audits are done via snail mail, the IRS may request more complicated documentation that will require more serious IRS tax help. If you already had a tax attorney prepare your taxes have them involved in the auditing process because “the fee you paid may cover such help, and the agreement you have may put the person on the hook for mistakes.” If the audit escalates to a face-to-face meeting, you will want to have a reliable tax attorney or Certified Tax Resolution Specialist there to represent you and provide you with IRS tax help. Don’t go it alone or you are likely to wind up in more trouble than you were in before.
4. Anything you say can be used against you
Do not take chances, hire a tax expert who can defend your rights. If you choose to go it alone and handle the IRS audit yourself, you will get “creamed” – It’s like going to court without a lawyer and worse yet, the fear that your case may be referred to criminal investigations for criminal prosecution should be reason enough alone to seek IRS tax help. Auditors will often ask many complicated questions in order to get you to say the wrong thing. Don’t let this happen to you. Braverman’s article suggests it’s even “wise to remain tight-lipped at a face-to-face audit” because even small talk could get you in trouble. If you hire a professional tax attorney you don’t have to attend the meeting and potential disasters can in turn be avoided.
5. The auditor’s boss may be able to negotiate
If your unhappy with the results found by the auditor you can always ask politely to speak with their supervisor. In any business the boss has more pull than the little guy. In situations where there may be some gray area, there is room for exceptions.
If that fails, you also have the right to file an appeal. The IRS will consider your case, and if they feel that there is a chance they could lose in court they might cut you a break. Your last option is taking it to the legal system. This may not be a wise decision unless there is more than $10,000 at stake.
How do you know if you have a case worth pursuing? A professional tax attorney or Certified Tax Resolution Specialist can help you there. Don’t wind up owing big bucks in IRS back taxes by letting your tax problems pile up on top of you. Seek professional tax relief before the taxman comes knocking at your door.
Tax Resolution Services is the only national tax resolution firm comprised of experienced tax attorneys, CPAs, and Certified Tax Resolution Specialists certified by the American Society of Tax Problem Solvers (ASTPS). This is what makes us uniquely qualified to successfully solve IRS problems day in and day out. Call 866-477-7762 or visit our website at www.taxresolution.com to schedule a FREE consultation today.
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Tags: beth braverman, certified tax resolution specialists, CNN Money, irs problems, IRS tax audits, IRS tax help, Michael Rozbruch, tax attorney, tax relief
