IRS Audit: When You Need a Tax Attorney and How to Find One
An IRS audit can be a stressful and confusing experience. You may feel overwhelmed and unsure of what to do. If you are facing an IRS audit, it is important to understand your rights and options. This article will discuss when you need a tax attorney, what a tax attorney can do for you, and how to find one.
When Do You Need a Tax Attorney?
Not everyone needs a tax attorney during an IRS audit. If your audit is simple and straightforward, you may be able to handle it yourself. However, there are certain situations where it is highly recommended to hire a tax attorney.
- You are facing a complex audit: If your audit involves complicated tax issues, such as business deductions, foreign income, or trusts and estates, you may need a tax attorney to help you navigate the process.
- You believe the IRS is making a mistake: If you think the IRS is incorrect in its assessment, you may need a tax attorney to challenge their findings and argue your case.
- You have been accused of tax fraud: If you have been accused of tax fraud, you need to hire a tax attorney immediately. Tax fraud is a serious crime that can lead to significant penalties, including fines and imprisonment.
- You are dealing with the IRS’s Criminal Investigation Division (CID): If the IRS is conducting a criminal investigation into your tax affairs, it is crucial to have a tax attorney represent you. CID investigations can be highly complex and potentially lead to criminal charges.
- You are facing a large tax liability: If you owe a significant amount of money to the IRS, a tax attorney can help you negotiate a payment plan or explore other options to reduce your tax liability.
What Can a Tax Attorney Do for You?
A tax attorney can provide you with a variety of services, including:
- Represent you during an IRS audit: A tax attorney can attend audit meetings with you, review IRS requests, and respond to IRS inquiries.
- Negotiate with the IRS on your behalf: If you disagree with the IRS’s assessment, a tax attorney can negotiate a settlement or compromise on your behalf.
- Prepare and file appeals: If you are unhappy with the outcome of an audit, a tax attorney can help you file an appeal with the IRS.
- Represent you in tax court: If your appeal is unsuccessful, you may need to go to tax court. A tax attorney can represent you in court and argue your case before a judge.
- Help you understand your tax obligations: A tax attorney can provide you with guidance on your tax obligations and help you understand complex tax laws.
- Protect your rights: A tax attorney can ensure that your rights are protected throughout the audit process.
How to Find a Tax Attorney
If you decide to hire a tax attorney, there are several ways to find one.
- Ask for referrals: Talk to friends, family members, and other professionals for referrals. You can also ask your accountant or financial advisor for recommendations.
- Search online directories: Several online directories list tax attorneys in your area. You can search for attorneys by location, specialization, and experience.
- Contact your state bar association: Your state bar association can provide you with a list of tax attorneys licensed to practice in your state.
- Check the IRS website: The IRS website has a list of resources for taxpayers, including a directory of tax professionals.
Choosing the Right Tax Attorney
Once you have a list of potential tax attorneys, you should interview several of them before making a decision. Ask them about their experience, fees, and how they would handle your specific case.
Here are some questions to ask potential tax attorneys:
- How much experience do you have handling IRS audits?
- What is your fee structure?
- What is your approach to IRS audits?
- What are your qualifications and credentials?
- Are you a member of the American Bar Association?
- What are your success rates in IRS audits?
- Do you offer a free consultation?
Tips for Working with a Tax Attorney
Once you have hired a tax attorney, it is important to communicate with them clearly and openly. Be sure to provide them with all of the necessary documentation and information.
Here are some tips for working with a tax attorney:
- Be honest and upfront: Provide your attorney with all the relevant information, even if it is embarrassing or incriminating. This will help them build a strong defense for you.
- Ask questions: Don’t be afraid to ask your attorney questions about the audit process and your legal rights.
- Follow their instructions: Your attorney will advise you on how to handle the audit. Follow their instructions carefully.
- Stay organized: Keep track of all communication with the IRS and your attorney. This will help you stay organized and avoid any misunderstandings.
- Be patient: The audit process can take time. Be patient and trust your attorney to handle things effectively.
Conclusion
An IRS audit can be a challenging experience, but it is important to remember that you have rights and options. If you are facing an audit, you may need to hire a tax attorney to help you navigate the process and protect your interests. By following the tips in this article, you can find the right tax attorney for your needs and ensure that you are properly represented.
