The Internal Revenue Service audits less than one percent of all of the tax returns that it receives. While the percentage of audits is small, the threat of being audited looms large in every taxpayer's mind. Receiving notice that you're being audited can be frightening and you may be unsure of what your best course of action is if you find out that the IRS wants to take a closer look at your tax return.
If you receive an audit notice, you want to respond proactively and ensure you take the right steps to protect yourself. Often, this means contacting a Maryland tax attorney who can assist you in understanding what the IRS is looking for and in responding to the IRS queries in a smart manner designed to minimize the possibility that financial loss will result from the audit.
Responding to an IRS Audit
If you receive notice of an IRS audit, the first thing to do is to ensure that you are actually being audited. The IRS will only send the initial notice of an audit via mail, so if you are notified of an audit via email, phone, or social media, you may be the victim of an attempted scam. If you receive a notice from the IRS, it might also just be an adjustment, which happens when the IRS finds a math error in your tax return and adjusts your return accordingly.
If your notice from the IRS is actually legitimate and does indicate you are being audited, you'll need to find out what the potential problem with your return is and will need to begin assembling paperwork to prove that you actually declared an accurate income or that your deductions were legitimate.
The IRS will specify in their audit letter whether or not they are auditing the entire return or just a part of the return, so you should focus your efforts to obtain your records on providing the specific information that the IRS is looking for.
You should also reach out to a legal professional in order to get help preparing for the audit and to ensure you have a knowledgeable advocate representing you. A Maryland tax attorney will help with your audit response so you can ensure you do everything possible to satisfy the IRS in their investigation and so you can reduce the chances you'll be found to owe back taxes and penalties.
An attorney can represent you in any hearings or any interactions with the IRS and can help you to prepare records and correspondence to send to the IRS, even if that attorney was not involved initially in preparing your tax returns.
You should not talk with the auditor or respond to any requests for information until you have obtained legal advice about the implications of your responses or the documentation that you are providing. Contact US International Tax Advisors as soon as you've received notice of an audit so your lawyer can help you to begin formulating a strategic response to protect your wealth.
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