Receiving a notice from the IRS is stressful. There is panic, fear and anxiety about the process, what the IRS is looking for and whether there will be a large assessment of penalties or fees. When dealing with the IRS and other regulatory agencies it’s important to have an experienced and professional representative that understands how to effectively represent your interests in an audit or other situation. Whether you are facing an audit for the first time or are dealing with an ongoing issue, we can help. The IRS allows a taxpayer to have an authorized representative represent them. This means you do not even have to communicate with the IRS, we can handle that for you! We will develop the best strategy to defend your position. We can also assist in preparing all documents requested by the taxing authority and handle all correspondence on behalf of the taxpayer.
What To Do If You Get a Notice from the IRS
Most “audits” are just a letter asking for additional information about your tax return. In other cases, you’ll get an invitation to meet with an agent to discuss your return. There’s no need to panic, but there are certain steps you should take.
Don’t ignore the letter
Ignoring the IRS is the worst possible thing you can do. The situation won’t go away. While you should write back as soon as possible, you or your audit representative can ask for more time to gather the paperwork and forms.
Decide whether you need representation
Most of the time the letter you get in the mail is just a simple request for information to support an amount on your tax return. In that case, just sending in the requested paperwork is usually sufficient, and you don’t need to get your lawyer or accountant involved. If you can’t find the information they’re looking for, you’ll probably want to call a professional to advise you on your next move. And if you’ve been called in to meet with an agent, you should almost certainly bring in outside help from a qualified tax attorney or accountant.
Tell them what they want to know (and nothing more)
Only about 2% of audits are random; the rest of the time, the IRS has very specific questions it wants answered, and will request forms and receipts accordingly. That means two things: Send or bring all the forms you’re asked to bring and answer all the questions to the best of your ability. That second point is important. Provide truthful answers, but do not volunteer to share information that is not specifically requested. This is where have an audit representative could be extremely important.
Negotiate and appeal
Once the audit is done, the agent will assess any taxes and penalties you owe. However, the assessment can always be appealed. The IRS may be willing to cut you a deal that will make you happy because they don’t want the case to drag on. This is another time where it pays to have good audit representation.
Contact us today if you have received a dreaded letter from the IRS. Even if you believe that you have not done anything wrong, we don’t recommend that you attempt to represent yourself.