Getting a notice of audit by the Internal Revenue Service (IRS) may spell trouble. An audit could be a cakewalk or a nightmare. The way you approach the matter determines which kind of experience it would be. It is also a wise idea to consult a tax attorney beforehand to avoid legal complications later.
Preparation for the audit
Do your research first. Go to the IRS website and find out the details of the problem and the procedure.
Talk to an attorney to understand the objective of the IRS in conducting the audit. Your attorney would be able to help you understand the reason for this as well.
The notice of audit would have the Taxpayers’ Bill of Rights (IRS Publication 1). Read it thoroughly. Ask your attorney if you are unable to understand any particular point.
Discuss the issue with the professional tax preparer who helped you with the return filing. Ask him to be present at the time of the audit if necessary.
Get all relevant records together. Do not provide records the IRS did not ask for, or volumes of irrelevant ones that make the process more complex.
Undergoing the audit
Do not lie or provide incorrect information to the auditor. This could lead to serious complications.
Do not provide more details than what the auditor asks for in the first place. Be concise and stick to the point while answering questions.
Ask your attorney to be present at the time. This would ensure avoidance of legal complexities later.
Completion of the audit
In most cases, you would need to pay up something. If you agree to pay up front, there are no further problems. However, if you do not agree to the decision or are unable to pay the amount, consult your
Maryland tax attorney about the best thing to do.
You have three options –
Try to negotiate the matter with the auditor
Try to come up with a monthly repayment scheme
File an appeal at Tax Court or at the IRS Appeals Office
Getting legal help and representation from the very beginning is important to avoid any hassles. There are various law firms in Maryland specializing in this field. All you need to do is find a good one and get an attorney for consultation. Whether you are preparing for an audit or undergoing it, proper legal help could ease the process.
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