The IRS selects tax returns for audits for many different reasons. Some audits result from computerized screenings based on certain criteria. In others, the IRS may have specific information from a source that has caused it to question the veracity or completeness of the information on the return.
Whatever the reason for the audit, you should not meet with the IRS without the advice and representation of an experienced tax attorney. Doing so could harm your ability to affect the outcome and possibly expose you to significantly higher tax liabilities.
Boston Audit Defense Attorney
Theodore L. Craft has more than 30 years of experience examining tax returns and representing clients in IRS audits. He also handles cases involving audit protests and appeals. His clients have included small-business owners, individuals in professional practices and large corporations.
Contact Theodore L. Craft for a consultation. Mr. Craft can review your situation, explain the audit process and discuss what his firm can do to avoid or limit potential harm to you.
What Might One Expect to Happen in the Event of a Tax Audit?
The answer, as one might expect, is "it depends." In an income tax audit case, for example, some general statements can be made. Especially in those cases in which the audit is one conducted in the field for the examination of the books and records of a business by an IRS Revenue Agent, the agent will be looking to verify that the factual information presented on the return is correct from:
- Verification of reported transaction details from books and records regularly maintained, and which, theoretically, ought to support the financial information presented on an income tax return [income and expenses];
- Corroboration of the accuracy of income reported from a bank and other financial records in addition to internal books and records;
- Answers provided by the taxpayer [the Client] to questions relating to disclosures of matters made or not made, and which are essential to determining the accuracy of representations made on an income tax return or returns;
- Confirmation of third-party relationships, and
- Reconciliation of expense or capital expenditure to business necessity and use
One is more often than not ill prepared, at best, to respond to demands for production of financial and tax records and, moreover, for explanations of how these records support information on an income tax return or returns. Business, banking and tax records enjoy no privilege of non-production. Nonperformance is not an option. Time is usually [in fact, always, at least to the Revenue Agent looking for information] of the essence. Thus, timely performance is of critical importance.
As is the case in an enforced tax collection action, or in any matter in which there appears to be a sense that fraud may be suspected, one cannot see leverage in the situation. One cannot afford anything less than a truly knowledgeable, effective advocate to stand in one's shoes as advocate for what has been done or not done being understood and treated in a civil, sensible manner, and closed out as quickly as possible.
Comprehensive Audit Representation Services
The IRS already knows a great deal about you when you are called in for an audit. In fact, it may have obtained much more information about you than appears on your tax returns from a third party such as a bank, an employee, relative or business competitor.
When representing you, Theodore L. Craft will first try to determine why the IRS has called you or your business [or both] in for an audit. Since he has handled hundreds of audit cases and formerly worked for the IRS as its legal counsel, he understands how to determine the IRS's purpose. He is the "go to" person for developing an appropriate response, and attitude.
Mr. Craft will carefully examine all aspects of your case and represent you zealously during the audit. He knows which standards of weight and sufficiency of evidence the IRS uses when evaluating returns for audit changes, and how to be responsive to IRS determinations, or "findings."
The goals of attorney Theodore L. Craft will be to present your case in the best light and to influence the outcome in your favor to the best of his ability.
IRS Audit Appeals
If after an audit the IRS determines that you owe additional taxes, you have the right to contest the decision. Theodore L. Craft can represent you in an audit protest to the IRS Appeals Division. If that is not successful, he can petition the United States Tax Court or Federal District Court for relief in a tax appeal.
Learn more about the:
- Internal Revenue Service audit process
- Equitable jurisprudence in tax law
- Sensitive tax audits standards of evidence
For a consultation about an IRS audit, contact attorney Theodore L. Craft. Call 781-665-6872 locally or 1-888-TAX-RISK 829-7475).