I'm Being Audited. When Should I Get An Attorney?

Daren Brown
By Daren Brown | March 22, 2019

tax-return-webOne of the most feared financial processes anyone can endure, being audited, is never an invited exchange of communication with the Internal Revenue Service. However, if you are being audited, it isn't the end of the world. At the same time, poor decisions could cost you a significant amount of money. While you can complete the audit yourself, the best option is to get a tax attorney as early on in the process as possible. The following information briefly explains a few important facets of a tax audit.

What Is A Tax Audit?

During a tax audit, an auditor from the IRS examines your business or individual tax returns to ensure your compliance with the tax laws and that you have filed your return accurately. If you can prove your tax returns were filed properly, the process will be complete and no further action will be taken. However, if the IRS finds purposeful errors, you’ll have to pay the return plus any interest penalties.

Types Of Tax Audits

When you find out you are being audited, it could be one the following four types of audits:

  1. Office Audits are when you are asked to provide specific documents to your local IRS office.

  2. Correspondence Audits are when the IRS requests specific information about a portion of your tax return. In most cases, this type of audit will require you to provide checks, receipts, and other types of similar information.

  3. Field Audits are when an agent actually visits you in your place of business to complete the audit.

  4. Taxpayer Compliance Measurement Program Audit is the most in depth audit. With this type of audit, you will be required to substantiate every part of your tax return with documents such as marriage licenses and birth certificates. The main goal of this audit is to ensure the information inside of the computer scoring program is accurate and up to date.

While you should consult a lawyer for any type of audit, Taxpayer Compliance Measurement Programs and field audits are the most extensive, therefore it's highly suggested you have a tax lawyer present while these types of audits are being conducted.

Contact A Tax Attorney

If any audit indicates signs of deliberate evasion or misrepresentations in your return, the matter could be referred to the Criminal Investigation Division of the Internal Revenue Service.  Federal Prosecution for tax crimes is very serious and you need someone experienced to protect your rights. When it comes to the future of your business or your personal finances, you shouldn't chance your tax audit alone. Instead, contact Christy Drake at Stockard, Johnston, Brown & Netardus, P.C. in Amarillo, Texas. As the most experienced Federal Criminal attorney in Amarillo, Christy Drake can provide you with the counsel and legal advice to ensure your rights are being upheld during your audit or criminal investigation.

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Topics: Federal Criminal