3 Instances When You Should Hire A Lawyer For Your IRS Audit
Posted on: 2 May 2019
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No taxpayer wants to check their mail and find a letter from the IRS that states they're being audited. One of the first questions that may come to your mind is whether you need to hire a tax lawyer to assist you with the audit. Here are three instances when your IRS audit will benefit from the services of a lawyer well-versed in the tax law.
1. You Neglected to Report Significant Income on the Return
If you intentionally or accidentally neglected to report a significant amount of income on your tax return, you should consider hiring an attorney who practices tax law. Technically, failing to report income in hopes of lowering your income tax is tax evasion, and this is a crime. Even if the IRS hasn't formally charged you with anything, it's best to be proactive and get advice from a lawyer about your situation.
Some taxpayers don't report income because they don't think the IRS will find out about it (like cash payments), or maybe they didn't think it needed to be reported. Though ignorance doesn't excuse tax evasion, your lawyer can assist you with negotiating with the IRS should they decide to charge you with a criminal act.
2. You Used Intentionally Used Incorrect Info for Your Tax Return
Another behavior that frequently gets taxpayers in hot water is intentionally using incorrect information on their tax returns. Perhaps you overstated qualifying expenses for a tax credit, or maybe you deducted some expenses as business expenses when they didn't meet all of the criteria for legitimate business expenses.
Misrepresenting your financial information is tax fraud, and this is also a crime. It's possible for you to be charged just with tax fraud, or the charges might include tax evasion and tax fraud.
A tax lawyer can assist you with your options for correcting or handling the incorrect info in your tax return. Your lawyer may also make an offer on your behalf to the IRS to help you settle any taxes that you owe.
3. Your Audit is Complete and You Disagree with the Results
After the IRS completes your audit, if they find that your initial return was not correct (either intentionally or unintentionally), they will demand that you pay any additional income tax liability. If you disagree with the findings of your audit, a lawyer can help you argue your case and potentially get the additional tax liability decreased. They can also tell you what steps you need to take to bolster your arguments. For more information, contact a tax attorney, such as one found at Kitch Law Firm.