When you owe the government money, the situation can be extremely stressful. As the most powerful collection agency, the IRS has the authority to investigate any suspicions of tax evasion or other related issues. An audit made by the IRS is something no one wants to go through. Not everyone has the tools and/or adequate level of understanding of tax law to successfully take care of their tax problem the right way. For legal assistance, it is recommended that you seek the help of an experienced tax audit lawyer such as one from Crepeau Mourges who can provide you the guidance you need to resolve your matter.
An audit made by the IRS is a review of an organization or taxpayer’s assets and complete financial history. The IRS selects an individual for an audit if they have not paid the right amount of taxes or if an issue with a transaction is reported to the IRS. They are typically done through mail or in-person interviews. Audits are conducted to confirm reported financial information and to make sure that an individual or organization is not engaging in fraud or other illegal activity. At the end of an audit, the IRS may send a tax bill that must be paid.
There are three main types of audits that the IRS conducts.
These types of audits are typically the least concerning. Correspondence audits are done through mail, and usually occur when other parties report financial information that is different from what you have reported. One of the most common ways these are triggered is by failing to report certain transactions or withhold information.
An office audit is also known as a desk audit. These are more serious than a correspondence audit, and are more in-depth. The IRS will review an individual, business or organization’s financial records as well as business practices or lifestyle habits. Office audits are done in-person at an IRS office.
A field audit is the most thorough type of audit that the IRS conducts. They can last months or years, and require taxpayers to produce much more detailed financial information. Field audits are usually reserved for highly complex tax issues.
It is best to work with a tax audit lawyer to take the right steps to settle your tax issue. If you are not confident in handling tax-related problems on your own, talk to a tax audit lawyer so you can receive guidance for your particular situation. For more information about IRS audits and legal advice, schedule a case evaluation with a skilled tax audit lawyer today.