IRS Audit Defense Lawyer

The Internal Revenue Service (IRS) conducts audits to uncover errors, unpaid taxes, and criminal fraud. While many IRS audits are straightforward and routine, any audit has the potential for serious consequences. An IRS audit defense lawyer helps you prepare for an audit, preemptively address any mistakes, and protect your rights from an IRS agent. This provides you with peace of mind and can limit the consequences of the process.

Hire an IRS Audit Defense Lawyer at TaxSmith, LLC

Working with the right professional can make a significant difference in the process of your audit. At TaxSmith, LLC, we have more than a decade of tax law experience, and we can defend you against an IRS audit. We understand how the audits impact individual taxpayers and businesses, and we also know that they can be very stressful.

Our firm helps you understand the potential impact of an audit and what your options are moving forward. We assess your unique situation and review your tax information, determining the right way to resolve an audit and protect your rights.

What Is an IRS Audit?

An IRS audit occurs when the agency reviews your financial records and tax information to determine if you reported the correct information and paid the correct tax on your tax returns or other tax filings. It reviews information like receipts, bills, canceled checks, employment information, loan agreements, and bank account information.

Often, audits are incredibly routine. However, there can be consequences to an audit, from requiring you to pay more in taxes to even criminal consequences.

Even if you believe there are no issues with your taxes, it’s useful to reach out to an attorney if you have received notice of an IRS audit. It is even more important if you think you may have made errors in your tax forms. Your attorney can explain what you can expect from the process and review your taxes before the audit happens. This can help you determine the next steps to take proactively.

What Leads to an Audit by the IRS?

The IRS conducts audits on taxpayers each year, and facing an audit doesn’t mean the agency thinks you did something wrong. There are three main reasons why the IRS conducts audits:

1. Your taxes were randomly selected.
2. An automatic computer screening of your returns against the norm uncovered a discrepancy.
3. You had transactions with other taxpayers that were selected for an audit, whether that audit was random or for cause.

In 2024, the IRS closed over 505,500 tax return audits in the United States, over 444,000 of which were on individual income tax returns. Most of these audits result in an increase or decrease in the taxes you owe the IRS, while some result in no changes.

It is very rare that these cases lead to more serious consequences, but it could happen if the IRS thinks you deliberately committed fraud. In the same year, the agency launched nearly 2,700 criminal investigations into taxpayers.

What Are the Types of IRS Audits?

An IRS audit is generally conducted in one of the following ways:

1. Mail audit: In a mail audit, copies of documents for the audit are sent through the mail. If there are too many documents to send, you can ask the IRS to conduct an in-person review.
2. In-person office audit: This is when the audit is conducted at an IRS office. You will meet with the IRS examiner at an office local to you.
3. In-person field audit: These audits are conducted at your home, place of business, or the office of an accountant or other representative. This type of audit tends to have the widest scope.

Instructions for your audit type and contact information are included in the initial letter you get from the IRS regarding your audit.

What Can Happen After an IRS Audit?

After an IRS audit, one of the following will likely happen:

1. The IRS audit found no issues, and no changes need to be made to your taxes or what you paid.
2. An issue was found, you were assessed more to pay in taxes, and you agree to the change and the payment.
3. An issue was found, you were assessed more in taxes, and you do not agree to the change or the amount asked to pay.

If you don’t agree, there are additional steps, like an appeal, you can take.

FAQs About Tampa, FL State Tax Law

What Is an Audit Defense?

An audit defense is when you work with a professional to navigate an IRS audit, protecting your rights and financial interests. When you hire a Miami state tax lawyer, they can contact the IRS on your behalf, help you gather important tax information and other financial documentation, and answer any questions you have. They make sure the IRS respects your rights. If the IRS states you owe additional taxes, your attorney can assess your next steps.

Is IRS Audit Defense Worth It?

An IRS audit defense is often worth it, as it can save you a lot of stress and money. With legal representation, you don’t have to gather tax information and deal with the IRS yourself. If you are assessed additional tax, an attorney can determine if the assessment is fair and make an appeal if it isn’t. If the assessment is fair, but you can’t pay, an attorney can review options to negotiate with the IRS, like an installment agreement.

What Is a Red Flag to the IRS?

There are several things that may be red flags to the IRS. This may include taking unusually high deductions or credits, income discrepancies, failing to report certain assets like offshore accounts, failing to file all required tax forms, having an especially high income, or cryptocurrency transactions and violations. You can also be audited for having business interactions with another taxpayer that was selected for an audit.

Can the IRS Audit You After Seven Years?

Usually, the furthest the IRS will audit is six years, with most audits only reviewing the past three years of returns. However, there may be exceptions, depending on your circumstances and the information the IRS deems necessary for the audit. When you work with an IRS audit defense attorney, they can help you determine what is reasonable for the IRS to review in a potential audit and prepare accordingly.

IRS Audit Defense Attorney

When you need straightforward and exceptional legal support for an IRS audit, reach out to TaxSmith, LLC.

Venice, FL Tax Law Additional Resources:

Tax Liens in Florida

• How to Remove a Tax Lien in Florida
• Federal Tax Lien Statute of Limitations in Florida
• How Long Does a Tax Lien Last in Florida?

Tax Debt & IRS Issues in Florida

• How to Get Out of Tax Debt in Florida
• Can a Tax Attorney Negotiate with the IRS to Resolve Tax Debt Issues in Florida?
• IRS Offer in Compromise in Florida
• How to Negotiate a Tax Debt Settlement with the IRS in Florida
• Tax Settlement Options for Florida Residents