Taxpayers across the country are highly afraid of being audited by the IRS for a considerably good reason. A tax audit is a procedure where the Internal Revenue Service tries to confirm the numbers that you have put on your tax return. Almost all taxpayers become confused when it comes to an IRS audit. Many individuals are unsure of what an audit actually is. It is based upon a personal audit or a business tax audit. There are different types of IRS auditing methods.
Correspondence/ Mail-away Audit
Office Audit
Field Audit
There are several reasons why you shouldn’t handle an IRS audit on your own. The IRS always has an advantage due to the fact that the average taxpayer does not know enough of the tax laws to defend themselves against the IRS regarding these tax audits. Representations and statements you make during an audit “Can and will be held against you”. You have rights to representation according to IRS Code Section 7521 and will not be required to appear in person. The IRS has rules of engagement - the Internal Revenue Manual “IRM” is the single official source for IRS policies, directives, guidelines, procedures and delegations of authority. It tells IRS employees how to treat taxpayers in administering the nation’s tax laws. We can and will confront the IRS agent about the multiple mistakes he/she made regarding our client’s IRS tax audit.
With that in mind, when was the last time you read the IRM? Not knowing the rules of engagement and your rights as a taxpayer is reason enough to seek the help of a specialist who will review, breakdown the audit to all fundamental aspects and then design and build a negotiation strategy to produce a case representation by lawful means for the best possible tax resolution outcome.
These agents are highly experienced in interrogating taxpayers nationwide. They are considered the “detectives” of the IRS. It starts out with a simple IRS audit letter or perhaps a phone call asking you to discuss something as simple as your deductions. You then go to the IRS office thinking you can answer a few simple questions about your deductions and get yourself out of your audit situation. Usually, the audit interview will take place in a cubicle like setting, which many people describe as the “interrogation room”. Some IRS agents begin speaking to you in a nicely manner, then starts to become more aggressive in questioning you on your tax returns and in looking at your documents looking for inconsistencies and misrepresentations. This is where you begin to sweat and stumble. In most instances, you are questioned about deductions for one tax year and they actually open up information pertaining to one or two additional years. If you have a field audit; in 98% of all cases after the initial meeting, the IRS agent will send you a document requesting additional information. Most taxpayers are willing to send the agent all the documents they’ve requested. However, you really need an expert to review the documents the agent is requesting before you send them in. The IRS is only entitled to certain information. If you send in all the documents they asked for, it can hurt you in the long run.
In some cases, the agent may ask to come to your house. This may seem like an easier more convenient approach for yourself; however, you need to keep in mind that all the IRS desires is to find out as much information about you as possible. You do not want an IRS agent at your residence! They are simply trying to see what assets you have inside of your home.
If an IRS agent contacts you – we recommend that you be kind & courteous but advise them that your representative (Enrolled Agent, CPA, and attorney) will be contacting them regarding your case. If the IRS agent continues to question you, simply continue to inform him/her that your representative will be contacting them on your behalf. This is very important because whatever info you provide them with will be used against you rather than for you.
As soon as you receive a letter from the IRS in regards to an income tax audit, you automatically assume you should contact an attorney or even a CPA to handle the issue for you. Although, a CPA may have prepared your return and is familiar with your situation. This may not be the correct solution. Many CPA’s do not wish to battle with the IRS due to the fact that they have many other clients they need to protect. They fear that the IRS will go after their other clients. Further, a number of them do not specialize in IRS Audits and Representation. As for attorneys, most do not have the training or expertise in dealing with IRS rules & regulations. They specialize in criminal, prosecutorial, employment, immigration, business, insurance, personal injury, family, motor vehicle, wills and estates among others.
TAX DRx specializes in IRS audit representation and resolution. We know the IRS IRM audit guidelines. Our team includes a group of actual Enrolled Agents, ex IRS agents, ex IRS tax attorneys and CPA’s who are extremely knowledgeable of IRS procedures. We’re not looking to be the leader in TAX Resolution, simply the company who offers “the Remedy to your Taxing Concerns” in other words TAX DRx gets the job done.
TO ENSURE COMPLIANCE WITH REQUIREMENTS IMPOSED BY THE IRS, WE INFORM YOU THAT ANY TAX ADVICE CONTAINED IN THIS
COMMUNICATION (INCLUDING ANY ATTACHMENTS) WAS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF
(1) AVOIDING TAX RELATED PENALTIES UNDER THE INTERNAL REVENUE CODE OR (2) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER
PARTY ANY MATTERS ADDRESSED HEREIN.