Make Your Phoenix Tax Audit Fast and Painless with These Great Tips

Everyone dreads the idea of getting an IRS audit. But if you find out that you are the subject of one, you can’t just bury your head in the sand and hope it will go away. It won’t.

Failing to cooperate will only make the problem worse, and you’ll be dealing with a lot bigger problems than paperwork.

To understand what you are up against, you need to know what type of audit you are dealing with: A correspondence audit, office audit, or field audit.

If you were honest on your return, you have nothing to fear. Working with an Arizona tax audit lawyer can help you navigate the audit process, but there are several things you can do yourself to make your audit a little easier, as well. Understanding the audit process will help you understand how to behave.

Correspondence Audit

A correspondence audit is the most basic type of audit, and it typically takes place entirely through the mail.

Often, a correspondence audit is performed because the IRS records do not match what you submitted. For example, you may not have entered the same income shown on the W2 or 1099 forms submitted to the IRS.

The purpose of the correspondence audit is usually to get more information, but the IRS may also say that you owe money based on their calculations from the information they have.

You should always work with a Phoenix tax audit lawyer when responding to this request. Never talk to the IRS yourself, either in letter form or on the phone.

When you start talking to the IRS, you open yourself up to saying the wrong thing or providing extra information that invites more questions. You can end up digging yourself a bigger hole.

Your lawyer is more knowledgeable about tax law and know how to protect your rights. Also, if an auditor asks a question about your return, your tax audit lawyer can say that they need to check in with you, which gives them time to formulate a strategic answer.

Also, if you try to talk to the IRS yourself, it can take you three to six months to clear up a simple audit. Your lawyer can use the Tax Practitioners Hotline to talk to an agent more quickly and can clear up the issue faster.

Office Audit

An office audit asks you to come down to an IRS office and discuss the situation. Yet this would seem to violate the rule of never talking to the IRS.

You can send your tax audit lawyer in your place. An experienced lawyer will know how to provide just the documentation or information required so as to limit the scope of the audit. That way, no new issues will arise.

Whether you are dealing with the IRS yourself or you are working through your Phoenix tax lawyer, it is important that you never provide the IRS with more information than they need. Only provide the documentation that is requested, and only provide the exact information needed for the question asked.

If you provide additional information, you could unintentionally elevate your audit to a supervisor. Either the entry-level agent will not have the knowledge or skills to handle the more complicated information provided and will have to pass it on to a supervisor, or the new information will raise issues about the correctness of the return, requiring another look.

Field Audit

A field audit is the most advanced type of audit you can face, and it involves an IRS agent coming to your home or business to go over your return and your documentation.

A field audit can be quite stressful, and you may feel nervous and defensive while you are being asked to justify your return. You may even feel angry or resentful that you are being made to answer for yourself — especially if you know that you have done nothing wrong.

There can be a great deal of latitude in interpreting what calculations need to be made or in determining penalties. Make sure the auditor is inclined to be generous with your case.

As always, you should also be working through your lawyer and not trying to handle the auditor on your own. Your attorney can advise you on what to say and not say so as not to cause more problems for yourself, but you are in charge of your own attitude and demeanor.

Silver Law PLC can give you advice on any type of audit you are dealing with, whether it is for your personal taxes or your business. An experienced tax audit lawyer from our team will thoroughly review your return and help you understand what additional information or forms are needed to address the issues. You may just need to provide something simple like a receipt, or you may need to amend your return to use the right forms or to include information that was previously neglected. Our attorneys will work to help you get through the IRS audit as quickly as possible and with as few penalties as possible — preferably none. Call us today if you have been notified that you are the subject of an IRS audit.

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Silver Law, PLC

7033 East Greenway Parkway, Suite 200
Scottsdale, Arizona 85254

Office: (480) 429-3360

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