Most people think tax trouble starts with something dramatic, like IRS agents knocking on the door. In reality, it often starts with a letter. The IRS spots something they want to look into, and they open a civil audit or inquiry. These investigations are not criminal, but that does not mean they are harmless. They can still result in serious financial penalties, and they can escalate quickly.
If you received an IRS notice or suspect something on your return could raise a red flag, it is time to get serious. Working with a Baltimore civil tax defense lawyer gives you the best shot at resolving issues early before they spiral into something worse. Call a tax attorney today.
No single formula determines who the IRS will target, but certain things can increase the risk of a civil audit or inquiry. These include:
Just because the IRS initiates a review does not mean they believe fraud has occurred. Sometimes they are just trying to verify some details. How you respond to that first notice can shape the rest of the process, though. An attorney in Baltimore could help you respond to a civil task dispute.
A civil tax inquiry typically starts with a notice or request for documentation. Someone might be asked to provide receipts or justify the numbers on a return. This process can stay relatively routine, but it is not always simple.
Sometimes the IRS decides to expand the scope of the audit. They might want to look into multiple years or different returns. If things look suspicious, they can refer the case to the IRS Criminal Investigation Division (CID), which takes things to a much more serious level.
The IRS has the authority to issue administrative summonses under U.S. Code 26, § 7602, which allows it to examine records, question witnesses, and gather information necessary to determine tax liability. While this does not mean someone is guilty of anything, how they respond can have an impact on the outcome of the investigation.
A civil tax defense attorney in Baltimore does more than deal with paperwork. They can step in early to help manage the process and protect a client’s rights. No one should unintentionally provide the IRS with more than they are entitled to. Every decision in a civil audit matters, and having a lawyer early in the process can protect a client’s future.
If the IRS sent you a letter or if you suspect you are at risk of an audit, now is the time to act. Trying to handle it alone can lead to mistakes that cost you more in the long run. Even if you think it is a minor issue, it can grow quickly if not addressed in the right way.
A civil tax investigation does not have to end badly, but it requires the right response. Contact a Baltimore civil tax defense lawyer who understands how the IRS works and knows how to protect your rights every step of the way.