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IRS Audit Representation
The attorneys at Segal, Cohen & Landis have extensive experience successfully representing clients through the entire audit process including defense of the filed tax return, protection from assessment of additional tax liability, and resolution on appeal where necessary.
What is an IRS Audit?
The IRS conducts over ten thousand audits a year. The audit process involves a review of the individual and/or business tax return(s) and supporting documents to confirm that information has been reported correctly and that the tax due is correct. There are different kinds of audits. Some are in person (office and field audits) while others are done via mail (correspondence audits). If subject to a correspondence audit, the taxpayer will receive a letter in the mail asking for more information about certain items on the tax return such as income, expenses and itemized deductions.
What can you do if you don’t agree with an IRS audit?
A list of records the IRS may request may be found at: https://www.irs.gov/businesses/small-businesses-self-employed/audits-records-request.
IRS Audit Selection
There are several reasons why a taxpayer’s tax return might be selected by the IRS for examination. Some include:
- The information the IRS has on file for the taxpayer is different than what the taxpayer reported
- Random selection and computer screening whereby the return is selected purely based on a statistical formula
- The information on the report triggers review (e.g., large schedule C deductions for a sole proprietorship)
- Related examinations where the tax returns of taxpayer’s business partners or investors are subject to examination
Years Subject to Audit
Generally, the IRS can include tax returns filed in the last three years in an audit. If they identify a substantial error, additional years may be included in audit. The IRS rarely goes back more than six years.
If the audit is not concluded within the typical three-year timeframe, the IRS may request that the taxpayer consent to an extension of the statute of limitations for assessing tax. Taxpayers are not required to do so and are encouraged to consult counsel in these situations.
Why You Need Audit Representation
Our attorneys have successfully resolved thousands of audit cases for clients involving a wide range of examination issues. We can help you:
- Communicate with the IRS throughout the entire audit process
- Present the supporting documentation with a view to best defend your tax return
- Defend the items reported on your tax return and minimize the assessment of additional tax liability
- Resolve any outstanding liability on appeal, including abatement of penalties
- Avoid future tax audits of the same issue(s)