You just received a notice that your taxes are going to be audited: should you get a tax attorney in Houston? An IRS tax audit is an accounting procedure where the IRS will examine your business or individual financial records to ensure you filed your tax return honestly, and accurately.
If you prove that your initial filing was complete and correct, you won’t be asked to provide anything further, but if the IRS finds errors or intentional mis-reportings, you’ll have to pay the recalculated return amount plus any interest and penalties. If you received an IRS audit notice, here are a few steps you can take to quickly resolve a stressful situation.
Ask Why Your Tax Return Was Picked For An Audit
Although the IRS is supposed to tell you why your return was selected, they will wait until you to ask. Your taxes can be audited for a variety of reasons, including:
- Specific activity on your return, such as cash wages, 1099 and W-2 forms that don’t match your reporting, high deductions relative to your income, reports inconsistent with previous years, etc.
- Related examinations, where your report involves transactions with someone else being audited
- Automatic flags, where computer programs find outlying “scores” on returns (ex: above average withholding)
- Random selection
All IRS Audit Notices or IRS Letters contain a notice number in the upper right-hand corner. These numbers will further inform you about the specific issue(s) your tax return was flagged for. Once you know what the audit is about, you can narrow your focus and start gathering the documents they want to review.
What Type of IRS Audit
The IRS has different types of tax audits, each with their own specific requirements. Knowing how they will audit you will help you determine what documents you need to prepare, where to send them, and whether you’ll need the assistance of a tax lawyer.
- Correspondence Audit: the IRS Service Center will ask you for certain information concerning part of your tax return. The IRS is generally looking for receipts, checks and similar information.
- Office Audit: the IRS Service Center requests you to bring certain documents to your local IRS office. The audit will be conducted there.
- Field Audit: an IRS agent comes to your business and conducts the audit in person.
- Taxpayer Compliance Measurement Program Audit: this is the most invasive type of audit, where each part of your tax return must be substantiated by proof in the form of documents, including even birth and marriage certificates.
For both of the field audits and TCMP audits, it’s highly recommended that you have a tax lawyer present while the audit is being conducted.
As soon as you get the notification of an IRS tax audit, contact your CPA or tax advisor who prepared your return. If you’re still nervous about going in alone to the audit, have a field auditor come out to your workplace. It would be advisable if your nervous to hire a professional tax lawyer.
Get An IRS Audit Tax Attorney In Houston, Texas
A tax lawyer will represent your interests and safeguards your rights should you become involved in tax controversies. If you are already facing issues with the IRS or State Tax Revenue, a tax attorney can assist you by resolving the problems FAST. It is possible that a tax attorney in Texas will be able to negotiate your debt relief with the removal of liens and levies.
They should also be able to arbitrate, reductions of penalties or interest. They would handle all negotiations with the IRS or government on your behalf. IRS tax attorneys are normally accredited lawyers who have been trained to focus on domestic or international tax laws. With in depth knowledge of taxation, they are able to assist with counsel or advice on various tax problems. Because these professionals are experts at understanding and applying tax law, they can help you find debt relief to reduce the amount owed to the Internal Revenue, and can assist in setting up payment plans to minimize your debt obligations.
Services provided by a tax debt attorney include, but are not limited to negotiating repayment of taxes on your behalf. They are also able to provide assistance on most tax related problems. If you are deficient on your taxes, you should be aware that the policy for the IRS to encourage full payment of all tax debt, and also that there exacting instructions and administrative barriers, before they will accept an Installment Agreement.
The services of an IRS tax lawyer is almost absolutely necessary when facing tax related issues such as an audit. Tax attorneys can act on your behalf in a number of capacities that may include negotiating your tax burdens, in property seizures and levies, wage garnishments and bankruptcy proceedings.
Do I Need a CPA or Tax Attorney In Houston?
The conclusion to hire a tax attorney should be a simple one. Tax related problems can be avoided with the guidance of a proficient tax lawyer who can be maintained with a monthly retainer. Then, he or she can act in the capacity of an advisor, and you can be apprised of impending difficulties with your tax strategies. Working together with your accountant, your tax lawyer in Houston can ensure that your affairs remain compliant and legal.
The main difference between a tax attorney and a CPA is often misunderstood, and under appreciated. Not everyone will need to hire a tax attorney for a personal return. However, if you own a business and you hire a tax attorney instead of a CPA, different rules apply in court. Should you be audited and it goes to trial, unlike a CPA, accountant or bookkeeper that can be called to testify against you in court, anything you say to your tax attorney is completely protected by the client / lawyer confidentially agreement.
Local Tax Attorney For 77006
The most prominent reason to hire a tax lawyer, are audits with the IRS. Being audited and confronting the IRS can be traumatic for most of the initiated people.. It can indicate criminal intention, incompetence, or ignorance in previous tax returns. None of these charges are very flattering, especially when viewed in the morning paper.
Many taxpayers feel helpless when it comes to an IRS audit. They often make rash decisions, which can involve deciding to forgo hiring a lawyer or reluctantly paying what the IRS has decided their adjusted tax liability should be. That NEVER goes in your favor! A legal tax professional possesses the necessary skills required to properly handle the tax issues that you are currently facing. They will take the time to evaluate your tax return and come up with the right strategy. Possibly even a REFUND. These tax professionals have years of experience working with the IRS, tax code and regulations.
By using a tax attorney from the very beginning, many tax problems can be completely avoided. Using software or tax return processing stores can often lead to mistakes and additional tax liabilities. These solutions do not provide you with the assistance you need when the IRS decides to audit. An attorney can also advise you of tax advantages that you are not currently taking advantage of with your personal or business planning. You may find that you are not claiming all of the tax deductions that you deserve.
With a full-blown audit, an IRS agent will likely come to your home or business to comb through your records looking for inconsistencies. Without the advice and counsel of a tax attorney, you would be leaving yourself open to being pressed by an agent to admit things that are not true and to incriminate yourself. A lawyer is your best ally against an IRS agent and their intrusive techniques.
Another major point to consider is attorney-client privilege. When you hire an attorney to handle an audit, your affairs are kept in the strictest of confidences. You can rest assured knowing that you can provide your attorney with all the information that they need to properly defend your case.
Types Of Tax Lawyers In Houston, TX
There are also instances when one type of attorney may cover work done by another type of attorney. To ensure that you are getting the best tax attorney is by knowing what your needs are and picking the lawyer who will properly fulfill these needs. You can find and communicate with the best tax attorney in Houston, or you can find online or over the phone. There’s no need to have to go into their office or have them come to yours. The different types of tax attorneys available in Houston are:
- Tax planning attorneys – these assist you in reviewing and restructuring your financial affairs in a bid to protect you from the IRS
- Criminal tax attorneys – these help you when the IRS brings criminal charges of tax evasion or tax fraud against you
- Business tax attorneys – these provide tax services to businesses as their name suggests.
- Tax audit attorneys – they are used when you already have a case filed in court which is pending
- Property tax law attorneys – these are best employed when you would like to renegotiate your property tax obligations with the IRS
- Bankruptcy tax attorneys – these specialize in taking care of cases of bankruptcy and they will help you to file bankruptcy as well as to provide all the necessary documentation that shows that filing for bankruptcy is in fact unavoidable
- Corporate attorneys for tax – these work with the various corporations when it comes to tax strategies, and getting the most out of their businesses
Another reason to hire a tax attorney is they understand that the tax laws are not exactly black and white, cut and dried. There are many shades of gray between the two. The tax law has become so convoluted that even the IRS agents can’t agree on the amount you owe. This is how you can go from owing money, to getting a return! It just depends on how good your attorney knows the tax code.
He/she will be your voice at IRS. Everyone knows the intimidation tactics the IRS will use to get more money. A good lawyer understands these tactics and how to “fight” their obvious over-reach in these cases.
If you owe a significant amount of money in back taxes, hiring a tax attorney is your best option. People who try to take on the IRS alone usually end up paying MUCH more than those who are legally represented. With attorney-client privilege, you will be able to honestly talk to your attorney about exactly what went wrong so they can find the legal options for you. Your tax lawyer knows the tax law inside and out and can come up with a solution for both the short term and the long term. You don’t want to underestimate the bullying tactics of the IRS. If you ignore them, they will pursue you even more aggressively.
If you own a business or a larger estate, you should also consider consulting with a tax lawyer. Your tax attorney will make sure all your assets are set up according to the required tax laws. This can save you thousands of dollars in tax deductions and give you the peace of mind that your tax return is above reproach.
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