An IRS audit can be a stressful and overwhelming experience, especially for taxpayers who have never been audited before. An audit involves the IRS examining a taxpayer’s financial records to determine if they have correctly reported their income and claimed deductions and credits.
If the IRS finds errors or discrepancies, they may impose penalties and interest and even initiate criminal proceedings in some cases. That’s why it’s important to have legal representation during an IRS audit. In this blog post, we’ll discuss the benefits of hiring an IRS audit lawyer and why you should consider one if you’re facing an audit.
What is an IRS Audit Lawyer?
An IRS audit lawyer is an attorney who specializes in tax law and represents taxpayers during IRS audits. The lawyer’s role is to protect the taxpayer’s legal rights and interests and ensure that the audit is conducted fairly and in compliance with IRS procedures. The lawyer also communicates and negotiates with the IRS on behalf of the taxpayer.
When to Hire an IRS Audit Lawyer
While not every taxpayer needs to hire an IRS audit lawyer, there are situations in which legal representation is necessary. Here are some examples:
- The audit involves complex tax issues: If the audit involves complex tax issues, such as business expenses, international tax law, or investment income, it’s best to hire an IRS audit lawyer. The lawyer can provide expertise in these areas and help the taxpayer navigate the audit process.
- The audit involves potential criminal exposure: If the taxpayer has committed tax fraud or other criminal activities, they may initiate criminal proceedings. In such cases, it’s essential to have an IRS audit lawyer who can defend the taxpayer and protect their legal rights.
- The taxpayer doesn’t have the time or skill to handle the audit: An IRS audit can be a time-consuming process that requires the taxpayer to gather and organize financial records and meet with the IRS. If the taxpayer doesn’t have the time or resources to handle the audit, an IRS audit lawyer can take over the process and handle it on their behalf.
Benefits of Hiring an IRS Audit Lawyer
Hiring an IRS audit lawyer has several benefits, including:
Expertise in tax law and IRS procedures
An IRS audit lawyer has in-depth knowledge of tax law and IRS procedures, which can be invaluable during an audit. The lawyer can review the taxpayer’s financial records and identify any errors or discrepancies, advise on the best course of action, and help the taxpayer navigate the audit process.
Protection of legal rights and interests
An IRS audit lawyer can protect the taxpayer’s legal rights and interests during an audit. The lawyer can ensure that the audit is conducted fairly and in compliance with IRS procedures.
Communication and negotiation with the IRS
An IRS audit lawyer can communicate and negotiate with the IRS on behalf of the taxpayer. The lawyer can provide explanations and documentation to support the taxpayer’s position,, and ensure that the taxpayer’s interests are represented in any dealings with the IRS. Most importantly, the IRS Audit Lawyer can meet with the auditor so that the taxpayer does not have face to face contact with the IRS.
How to Find an IRS Audit Lawyer
Finding an IRS audit lawyer can be difficult and it’s essential to choose the right lawyer for your needs. The attorney client privilege is a key advantage of hiring an attorney. It’s important when looking for an IRS audit lawyer to not discuss your audit with a non-lawyer.Once you have a list of potential lawyers, it’s important to research and evaluate them before making a final decision. Here are some qualities to look for in an IRS audit lawyer:
- Experience: Look for a lawyer who has experience handling IRS audits and is familiar with tax law and IRS procedures.
- Accounting Support: Look for a lawyer that is also a Certified Public Accountant (CPA) and/or has expert accountants on staff to support the accounting and tax preparation aspects of your case.
- Reputation: Research the lawyer’s reputation by reading reviews and testimonials from past clients and checking their disciplinary record with the state bar association.
- Communication skills: Choose a lawyer who communicates clearly and regularly with their clients and is responsive to their questions and concerns.
- Fees: Inquire about the lawyer’s fees and billing practices upfront to avoid any surprises later on.
In conclusion, hiring an IRS audit lawyer can provide many benefits to taxpayers facing an audit. The lawyer can provide expertise in tax law and IRS procedures, protect the taxpayer’s legal rights and interests, and communicate and negotiate with the IRS on their behalf. When hiring an IRS audit lawyer, it’s important to find a tax audit lawyer with experience, a good reputation, and excellent communication skills, and to inquire about their fees and billing practices upfront. If you’re facing an IRS audit, don’t hesitate to seek legal representation to ensure the best possible outcome for your case.