Being Audited? Here's Why You Need an Attorney

Being audited can be a terrible experience. Fortunately, the right attorney can offer guidance and assistance to minimize the emotional and financial impact of an audit.

Tax season can be stressful for anyone. This can be especially true if you run a business, have a lot of deductions, or maintain a large number of investments. Determining exactly how to file your taxes each year can be complicated and time-consuming. Unfortunately, once you submit your taxes, the journey isn't always finished. Each year, approximately 1% of tax returns are audited. The IRS may choose to audit returns for a number of reasons; however, there are several things you can do to minimize both your tax burden and your chances of being audited. Here's what you need to know.

Document Everything

One of the biggest reasons that audits occur is when there appears to be a discrepancy in the amount of money you made when compared with the number of deductions you claimed on your tax return. Whether or not you take a large number of deductions or business expenses, make sure you document everything. Save your business receipts, copies of expense reports, and any invoices you may have received or issued. Never "guess" as to how much you made or spent each year, as doing so is an easy way to get audited.

Don't Take Shortcuts

While you might try to rush through the process of filing your taxes, make sure you focus on taking your time and reading each section carefully. It's important to understand exactly whether you can make certain claims or deductions on your account. If you are audited, it's also important that you avoid taking shortcuts in your response to the IRS. You will need to respond promptly; however, make sure you meet with an attorney who can guide your response and help you provide the documentation you need to have a positive outcome.

Talk With Your Attorney

Anytime you receive correspondence from the IRS, make sure you respond appropriately and promptly. A tax attorney understands the verbiage present in an IRS letter and can help make sure you cover all of your bases in your response. Your lawyer can help you organize the documentation you need to respond to an audit and can help you navigate the process effectively. Understand that you may be required to pay additional taxes if your tax return was filed incorrectly; however, your attorney can help ensure you pay the correct amount and are not overcharged during this time.

When you're facing an audit, remember that you don't have to deal with the situation alone. Your tax attorney can help you understand exactly what information you need to submit and how you can deal with the outcome of the audit. They'll help fight for your rights to ensure you're treated fairly and that you're able to minimize the impact of the audit on your life. Don't wait to reach out. Call today.