If the Internal Revenue Service (IRS) is auditing your 2020 tax return, there are some important steps you need to take, and there are also some critical miscues you need to avoid. While it is possible to resolve an IRS audit without additional liability in many cases, an audit can also lead to additional tax plus interest and penalties, and it can potentially trigger a criminal tax fraud investigation as well. In order to avoid unnecessary consequences, you need to rely on the advice of an experienced Maryland tax lawyer, and you should schedule an appointment to speak with a lawyer as soon as possible.
5 Steps to Take if You are Being Audited by the IRS
Are you being audited by the IRS? If so, here are five steps you should take right away:
Step #1: Make Sure You Know What’s Next
Depending on the type of audit the IRS is conducting, there could be a few different next steps in your audit. You may have an obligation to submit documentation that substantiates your tax returns, or you may need to begin preparing to meet with an IRS auditor in person. Regardless, you need to be prepared, and you need to ensure that you have a clear understanding of the issue (or issues) that triggered the IRS’s inquiry.
Step #2: Gather Your Financial Records
In order to respond to the audit effectively, you will need to gather your financial records related to the tax year (or years) in question. This includes your W-2 or 1099, property tax records, year-end account statements and any other documents that substantiate the information contained in your return(s).
Step #3: Learn about the Potential Consequences of Your Audit
In order to ensure that you give your audit the attention it deserves, it is important to learn about the potential consequences of facing IRS allegations of tax evasion or tax fraud. For an overview, you can read: Common Tax Penalties.
Step #4: Learn about Strategies for Avoiding or Minimizing Additional Liability
While the penalties for underreporting or underpaying your federal tax liability can be significant, there are many ways to defend against these types of allegations. To learn about the ways you may be able to avoid additional liability in your IRS audit, you can read: Ultimate Guide to Maryland Tax Audits and Criminal Tax Law.
Step #5: Consult with a Maryland Tax Lawyer Promptly
Finally, as we mentioned above, if you are facing an IRS audit, it is important that you speak with a lawyer as soon as possible. Our tax lawyers have decades of experience representing individuals and businesses in Maryland, and we can start representing you in your audit immediately if necessary.
Schedule a Confidential Initial Consultation with a Maryland Tax Lawyer at US International Tax Advisors
Do you need to speak with a Maryland tax lawyer about an IRS audit? To schedule a confidential consultation with US International Tax Advisors, call 844-796-8565 or request an appointment online now.
Share This Post