Pensacola IRS Tax Attorney

Pensacola IRS Tax Lawyer

It can be incredibly stressful to face an audit, even if you are certain you’ve done nothing wrong. Minor errors can result in additional payments or even financial penalties by the Internal Revenue Service (IRS). More serious issues could even lead to criminal penalties. A Pensacola IRS tax attorney is an important ally during the audit process.

At TaxSmith, LLC, we have spent decades representing taxpayers to the IRS. We understand tax codes and IRS audits, as well as their impact on individual and business taxpayers. Let us help you navigate this process as successfully as possible. The closest Taxpayer Assistance Center is located at 7180 9th Avenue North in Pensacola. Our firm can represent you in discussions at this location and at other IRS offices.

Why Do Audits Happen in Pensacola?

There are several reasons why the IRS conducts an audit, and it does not always indicate that you did something wrong. Being selected for an audit can be stressful, but having dedicated legal support can help you prepare effectively. The IRS conducts audits based on the following methods:

1. Random selection: The IRS randomly selects a certain number of taxpayers to verify that their taxes are accurate.
2. Administrative error: If there is a discrepancy in your tax information or something considered outside the norm, an audit may be conducted to review this error further. This may be a spelling mistake, an information or math error, or underreported income.
3. Related examinations: Your taxes may be audited if a person or business with whom you have transactions was audited. This may be a business partner, investor, or other party. They may be audited randomly or due to an error.

Regardless of the cause of the audit, you should not take it lightly. Audits could potentially lead to serious consequences depending on the types and severity of errors present in your taxes. Even if you believe you made no errors, it is essential to protect your rights during an audit. By working with a tax lawyer, it will be easier to navigate the Pensacola IRS tax laws and the audit process.

The Possible Outcomes of an Audit

An IRS audit is conducted either by mail or an in-person interview. An in-person interview can be requested if you have too much information to mail.

There are three main ways an audit can be resolved:

1. The IRS agent determines there are no discrepancies in your taxes, and therefore, no change has to be made.
2. The agent finds a discrepancy or other issue, alters your tax return to be accurate, and you agree to the change and make the new payment amount.
3. The agent finds a discrepancy and alters the tax return, but you disagree with the change or the new payment amount.

After the audit is concluded, you can discuss the outcome with your attorney to determine what was found and the right response. An attorney can help you file an appeal when you do not agree with the audit conclusion and help you appropriately respond to IRS notices for payment so that you avoid additional issues with the agency.

In serious situations, the outcome of an audit may result in criminal charges. When you make a genuine mistake, the IRS will work with you to resolve the issue. However, if the IRS believes you committed tax evasion or tax fraud, you could be charged. Penalties for tax evasion range from a first-degree misdemeanor to a third-degree felony, while tax fraud can be charged as severely as a first-degree felony for repeat offenses.

Why Should You Hire an IRS Tax Attorney in Pensacola?

It is much easier to manage the audit process with the assistance of an IRS tax attorney. While many taxpayers can manage IRS audits on their own, it can be a stressful process. Taxpayers may be unaware of their rights during the process and what they can do if they disagree with the IRS agent’s final decision.

With an attorney, it is much easier to navigate the process. An attorney can help you gather the documents you need, including loans, canceled checks, employment records, and expense information. They can properly sort this information so that everything necessary is included in the audit.

Your attorney can also help you navigate the appeals process if it is necessary. Depending on the outcome of the audit, your attorney can help you understand what happens next.

FAQs About Pensacola, FL IRS Tax Law

Can a Tax Attorney Negotiate With the IRS?

A tax attorney in Pensacola can negotiate with the IRS, but you should always check their licensure and credentials in this area. You may want to hire an IRS tax attorney to negotiate your tax debt or navigate the process of an audit. Audits can be complex to deal with, and an attorney helps you protect your rights and gather important information to make the process go more smoothly.

Is It Worth Getting a Tax Lawyer?

It is often worth it to get a tax lawyer if you have tax debts that you don’t have the ability to repay or you are facing an audit. An IRS tax lawyer helps you determine your options.

During an audit, a lawyer can identify any errors or discrepancies and protect your rights as your tax information is reviewed. When you can’t pay tax debt, an attorney reviews the options to reduce or eliminate your tax debt.

Is a Lawyer or CPA Better for Negotiating With the IRS?

A tax lawyer is generally better for negotiating with the IRS compared to a CPA (certified public accountant) because a lawyer is specifically trained in negotiations and can provide legal advice. A CPA can help with tax filing, straightforward audits, and other financial planning information. A lawyer is much better equipped to handle disputes, appeals, and other complex legal tax issues.

How Much Will the IRS Usually Settle for?

The IRS usually settles for the amount that you can reasonably pay, which the agency determines based on information like your income, expenses, and asset equity. A tax debt settlement, or an offer in compromise, will resolve your tax debt for a lesser sum. However, not all taxpayers qualify for this option. Out of 33,591 offers in compromise proposed in the fiscal year 2024, the IRS accepted nearly 7,200, or approximately 21.4%.

Skilled Pensacola Tax Attorneys

Having a dedicated tax attorney by your side can help you prepare for any tax issue. Contact TaxSmith, LLC today and discover how we can assist you with the IRS.