IRS Tax Audit

What are the common problems that arise with an IRS tax audit?

The most common problem that arises with an IRS tax audit is the assertion by the IRS auditor that the claimed expenses were either improper or never paid. Often times, taxpayers do not keep perfect records of income and expenses. This does not equate to an increase in tax liability as the result of an IRS audit. An IRS audit can be easily appealed if expenses are deemed unproven or improper by the IRS auditor. Most times, a more reasonable view of the expenses will be granted to the taxpayer after an audit at the IRS Appeals Division. The tax attorneys at IRS TaxMasters Resolution System can smoothly guide you through the audit and into appeals if necessary.

Do I have to provide all the records that IRS auditor requests?

The IRS has the legal authority to summons your records. If you do not cooperate, the IRS can go directly to your bank and summons your bank records. In most audit cases, the fight with the IRS does not involve which records the IRS may look at, the fight involves how the IRS interprets the records that you provide to them.

Do I have to agree with the audit results?

No! The IRS audit result and corresponding IRS audit report are merely proposals of the tax that the IRS thinks you owe. The IRS auditor does not have the authority to assess that tax against you. If you disagree with the IRS auditor, do not sign the audit report. You simply need to appeal a disagreed audit.

Can I file an audit appeal myself?

Filing an audit appeal is not a difficult procedure. The paperwork to file an audit appeal can take as little as 30 minutes to prepare. Once an audit appeal is filed directly with the IRS auditor, your audit case will be transferred to an appeals officer. At the appeals level, you will sit a table with an appeals officer and have the opportunity to tell him which audit positions that you disagree with. The tax attorneys at Segal, Cohen and Landis LLP can guide into and through the IRS Audit and Appeals process.