You Received a Letter from the IRS Notifying You of an Audit.
Taxpayers, be they a business entity or an individual, face an uphill battle during an audit.
The IRS has more resources, manpower, and ability to perform an IRS tax audit.
While there’s a small chance that you were randomly selected for an audit, most likely you’re going to defend yourself against the IRS.
You don’t have to do it alone.
IRS tax audit representation can make a huge difference before, during, and after the process.
As an experienced IRS tax attorney in the Dallas, TX, area, Scott Scammahorn can help.
Contact our offices today to schedule your initial consultation.
Why Are You Getting Audited?
The first question people have after receiving an audit notice is, “Why.” Here are the most common reasons you’re getting audited:
You Were Randomly Selected
Every year, the IRS randomly selects taxpayers to undergo an audit. This allows the IRS to compare that return against similar returns. Generally, there’s nothing to worry about if you were randomly selected.
You Deducted Business Losses
In some instances, business owners are allowed to deduct business losses from their personal returns, but the IRS keeps a very close eye on these deductions and other Schedule C submissions.
You Didn’t Report All of Your Income
The IRS is aware of exactly how much you are paid each year. If you fail to report some earnings, the IRS will flag your return for a potential audit. In egregious cases, the IRS may charge you with tax evasion.
You Claimed Deductions You Shouldn’t Get
A lot of individuals itemize their taxes to claim more deductions. The IRS reviews these deductions, and if you claim ones that you don’t qualify for they’ll flag you and your return to be audited.
You Didn’t Report Foreign Income
If you earned income outside of the United States, on a real estate deal, for instance, you may owe the IRS on that income. Likewise, if you live overseas and earn income in the US, you’ll need to pay taxes, too.
The Numbers Didn’t Add Up
Tax returns can get complicated, and this is doubly true if you itemize, freelance, or own a small business. Errors happen, but those errors can trigger an audit. An IRS audit attorney, Scott Scammahorn is here to help.
Experienced IRS Tax Audit Lawyer for Individuals & Businesses
With an advanced degree in tax law and decades of experience defending taxpayers from overzealous IRS agents, Scott Scammahorn and his team are prepared to push back against the IRS.
A tax audit is serious, and you’ll need a tax attorney for your IRS audit. You won’t find one more committed to improving your outcome than Scott Scammahorn.
Contact our offices today to schedule your audit consultation.
The Three Types of IRS Audits
The IRS will conduct audits via email, at a local office, or at your office. They’ll never conduct an audit via phone.
Correspondence Audits
Correspondence audits are simple. They often occur because a taxpayer has been randomly selected or there are minor inconsistencies in their return. They’re conducted entirely via mail and are often concluded quickly.
Office Audits
For an office audit, the IRS will require that you travel to a local office. You’ll need to bring hard copies of your tax documents, and the IRS agency will look over them for evidence. A tax attorney can help with these audits.
Field Audits
If the IRS informs you that they’re going to conduct a field audit, you need IRS audit representation. In these audits, the IRS will send agents to your home or business to go through your records, tax documents, and tax filings.
Potential Results of An Audit
Every audit is unique. No two ever look the same or have the same outcome.
In the best cases, the IRS will determine that you paid and filed your taxes correctly. This is the common conclusion to correspondence audits.
Larger audits or audits concerning considerable amounts of money can have a number of potential outcomes, including
Offers in Compromise
If it’s determined that you owe the IRS money, there are circumstances where they’ll take less than the amount to settle the debt. This is known as an Offer in Compromise (OIC), and is a sought-after result.
Settlement or Payment Plan
If you owe the IRS but don’t have the money to pay in a lump sum, they’ll accept a payment plan. This will often come with penalties and interest, but a good tax attorney can negotiate to lower both of those.
No Further Action
Occasionally, a good IRS audit attorney can convince the IRS to drop the audit and investigate no further–often by demonstrating an error on their part. You will owe no money, and the IRS will stop the audit.
Tax Court
If the IRS believes that there was a sincere attempt to avoid paying your taxes, they may initiate civil or criminal proceedings against you. These are serious, and you need to enlist an attorney to defend you.
An Audit Is a Legal Matter. You Need Legal Representation for It.
Audits are scary. No one who receives a notification that they’re being audited feels good about it.
But with proper representation, you’ll likely make it through an audit owing some money to the IRS.
You may have also been randomly selected.
Only an experienced Dallas, TX, IRS tax audit attorney can help you.
Contact our offices today to schedule a consultation to discuss your audit notice.
