No business owner wants to be audited. While most companies submit their returns and pay their taxes without incident, a minority of taxpayers receive notice that the Internal Revenue Service (IRS) needs more information. The purpose of an investigation can vary, but it often comes from evidence of incorrect information on a return or the failure to pay taxes.
Audits can lead to serious consequences, making it important that you seek help from a dedicated IRS tax attorney. By taking the right approach, it may be possible to prevent an audit from turning into something more severe. You have the right to discuss your options with a Richmond IRS audit lawyer.
The IRS often has different reasons for pursuing an audit. Most of the time, these efforts begin due to conflicting information in a company’s tax returns. For example, agents might identify an unusually large number of deductions and want more information, including receipts or other business records.
At other times, audits occur due to a failure to comply with the law. The IRS can initiate an investigation when a person or business files their tax return late without receiving an extension. Alternatively, going multiple years without submitting a return can also lead to an audit.
It is crucial to be prepared for an audit, regardless of why the IRS initiated an investigation. By working with an attorney in Richmond, it may be possible to bring the IRS audit process to a favorable conclusion.
Not all audits are the same. Some are relatively informal, while others can require face-to-face meetings or even an in-person inspection of a place of business. The least intrusive of all the options is known as a correspondence audit.
A correspondence audit is conducted entirely through the mail. The IRS notifies a taxpayer of questions or issues regarding a return. They will generally request additional documentation related to one or more factors.
In more complex cases, a business owner might have to meet directly with investigators. The most intrusive of these options is the field audit, which involves the IRS appearing at a place of business and reviewing their records in person. Having a lawyer in Richmond could help limit the disruption that these IRS field audits may cause.
There are many reasons to hire an attorney when facing an IRS audit in Richmond. One of the most important benefits of relying on legal counsel is making the most of their skill and experience. Tax law is complex, and most people are not familiar with what to expect from an audit. The right legal counsel can help a taxpayer understand what may happen throughout this process and answer any questions they might have.
Having an advocate is also important during an audit. An attorney could deal directly with the IRS, which could not only limit the amount of stress a taxpayer experiences but also ensure the protection of their rights.
Negotiations are often a part of the audit process. In many situations, it is possible to resolve any issues that may arise without escalating a tax controversy. An attorney could work with the IRS to get a favorable outcome.
If you are being audited, there is no time to delay. Speaking with an experienced attorney could reduce the risks you are facing and help you formulate the best possible response. The sooner you speak to legal counsel, the faster you might be able to reach a positive resolution. These investigations do not always result in litigation, especially when you are proactive. Contact a Richmond IRS audit lawyer today to learn how they could help you.