A good tax attorney can help you navigate IRS audits. No one wants to get a letter from the IRS, it is never good news, and it instantly strikes a nerve. The IRS is a powerful agency that can audit any type of return. It can audit a business return for up to three years after filing. The IRS can go back 10 years to collect back taxes.
This powerful agency will stop at nothing to collect taxes. All the back and forth starts with an audit. There are three things you need to know about IRS audits before you make your next move.
They Are Random
Even if you are the person that crosses all of their t’s and dots all their I’s you can be audited. The problem with IRS audits is that you really do not get much say in it. You are not really given a lot of opportunities to voice your opinion on the matter. The whole focus of an IRS audit is to find something wrong with your return.
The smallest error on your part can mean thousands of dollars in penalties. If you skipped a year in filing, you need a good tax attorney on your side. The IRS will continue to dig until they find a way to collect their taxes.
Due Process
The IRS will give you an opportunity to answer their findings. One of the worst things you can do is to ignore letters from the IRS. Yes, it can be scary to have to face the music and call or respond, but if you do not, the IRS will put a lien on everything you own and garnish your wages. As soon as you get a notice, call a tax attorney and let them handle it. Do not wait.
It Can Take a Long Time
If you missed a year of filing and the IRS catches it, they will audit other years. The audit process will take a long time. You may not hear anything at all for months. Do not think they forgot about you, they have not, they are just working on the audit.
If you get a notice about an audit from the IRS, immediately contact a tax attorney that can help you navigate the process. It is better to be proactive than reactive with the IRS.