IRS audit representation in Baltimore

A Baltimore IRS audit begins with a letter asking you to prove parts of your return. It may question self-employment or gig income, cash sales at your business, or an easement deduction on a historic building. Whiteford Tax Defense handles IRS audits for Baltimore individuals, self-employed filers, nonprofits, and businesses of every size. We stay with you from the first notice through records, interviews, and appeals.

We explain what kind of audit you face, help you gather the right records, and handle your contact with the auditor. If the Comptroller of Maryland is also reviewing your state return, our Baltimore office can handle both reviews together.

Easement deductions on historic Baltimore properties

Baltimore's long history makes conservation and facade easement deductions on historic properties fairly common here. The IRS often disputes them. It may say the appraisal was too high, the paperwork is missing, the easement fails the perpetuity requirement, or the property isn't truly historic. Each one comes down to documents, so careful records matter.

The time and place of an audit meeting

The most common kind of audit is handled entirely by mail. See how mail, office, and field audits differ. When the IRS does want to meet, it picks the date, time, and place. It will work with you or your attorney on the date and time, to try to limit the disruption.

If you live in Baltimore, an office audit is generally held at the nearest IRS office that has audit staff. For a company, the IRS goes by where its books and records are kept. A field audit brings a revenue agent to your home, your business, or your accountant's office.

Moved since you filed, or keep your records somewhere else? You can ask in writing to move the audit, and the IRS decides each request case by case. Your attorney can often attend in your place. Whatever the format, gather and organize your records first, and give the IRS copies rather than originals.

Disputing the result: Appeals and the Tax Court

If you disagree with the examiner's findings, you can usually ask the IRS Independent Office of Appeals to review them. Appeals works apart from the IRS staff who audit returns and collect tax. Our page on IRS appeals in Baltimore covers that step.

Within Maryland, the U.S. Tax Court holds trials only in Baltimore. If your dispute doesn't settle, you can ask to have the case tried there. You start it by filing a petition within 90 days after the IRS mails a notice of deficiency. Filing usually puts off payment of the disputed tax until the case is decided. Our page on tax litigation in Baltimore explains what a court case involves.

Audit selection and common triggers

The IRS doesn't say exactly how it picks returns. Its computers compare returns with norms for similar returns. The IRS builds those norms by auditing a random sample of returns in its National Research Program. An audit of a business partner or investor can also lead to yours. Self-employment, gig income, and cash-heavy businesses can carry extra risk. Our list of common audit triggers covers the rest, from rounded numbers to repeated business losses.

Eggshell audits and criminal exposure

An eggshell audit is an informal name for a civil audit that carries a hidden risk. You may have information you'd rather the IRS not find, the IRS may suspect fraud, or both. Such an audit can become a criminal investigation.

If you're worried about what the IRS might find, talk early with an attorney who handles both audits and criminal tax defense. Once you retain counsel, communications with your attorney are generally privileged. That lets you plan for sensitive issues without disclosing more than you need to.