Navigating an IRS Tax Audit: What You Need to Know

IRS tax audit

For many, receiving a notice from the IRS for an audit can be a source of immediate stress and anxiety. The prospect of facing the government's tax collection arm can be daunting, but it is important to remember that you have rights and options. This blog post will demystify the audit process and explain why having a knowledgeable tax attorney on your side is critical.

At Rona Law Firm, we specialize in representing individuals and businesses in Torrance and Southern California during IRS audits. We handle the communication and legal strategy so you can focus on your life and business, knowing your case is in expert hands.

The different types of IRS tax audits

An audit isn't a one-size-fits-all process. Understanding what kind of audit you're facing is the first step toward a successful resolution. Common types include:

Correspondence Audit: The most common type, handled entirely through the mail, where the IRS requests documentation for a specific item on your return.

Office Audit: This requires you to meet with an IRS agent at their local office to review your financial records in person.

Field Audit: The most comprehensive audit, where an IRS agent visits your home or place of business to conduct a thorough review of your financial records.

Why an audit requires more than a CPA

While your CPA is invaluable for preparing your tax returns, an audit is a different matter entirely. An audit involves potential legal disputes with the IRS, where an attorney's role is crucial.

Here's what an experienced tax attorney brings to the table:

Privileged Communication: Unlike with an accountant, your conversations with an attorney are protected by attorney-client privilege. This is a vital layer of protection for sensitive financial and legal information.

Legal Representation: A tax attorney can act as your legal representative, handling all communications with the IRS and shielding you from direct and potentially aggressive questioning.

Expert Negotiations: Audits often involve complex negotiations. Your attorney understands the tax code, knows the IRS's processes, and can negotiate for the most favorable outcome, whether that's reducing the assessed tax, penalties, or interest.

Your first steps after receiving an audit notice:

Do not ignore it: Ignoring an IRS notice will only lead to more serious consequences, including further penalties or levies.

Organize your documents: Gather all relevant documents related to the item the IRS is questioning. The better organized you are, the smoother the process will be.

Contact a tax attorney immediately: Before you provide any information to the IRS, consult with an experienced tax attorney. Early legal intervention can significantly improve your outcome.

Your best defense starts here.

The IRS has vast resources, but you don't have to face them alone. A proactive and strategic approach, guided by an experienced Torrance tax attorney, can help you navigate the process with confidence. Don't let an audit turn into a legal and financial nightmare.

Facing an IRS audit?

Contact Rona Law Firm today for a confidential consultation at 818.964.1829 or email info@ronalawfirm.com.