Audits are one of the most powerful tools employed by the IRS against taxpayers. Ranging from minor to severe, audits are used to ensure the correct information has been given on financial records and tax returns. If the IRS suspects a taxpayer has manipulated figures on their records or returns, they will seek additional information through an audit. Most audits are minor and additional information is to be sent by mail, but some audits require more effort.
A field audit is the most severe of all audits. An IRS inspector is called to the individual’s place of business, office, or residence (usually unannounced) to further investigate all financial records and returns in order to ensure complete accuracy. If the field audit turns up errors or fraud the individual may be subject to penalties, liens, fines, criminal investigations, court hearings, and even jail time. While less than 1% of taxpayers experience a field audit annually, we believe it is important to prepare even the most honest for this worst case scenario. Following are a few tips to keep your composure in a field audit.
• Do not get angry: While it may feel that you are under a cloud of doubt, remain calm. It will not only help your case but it will not lead to greater suspicion. Have all information readily available and assist in any way you can. We understand how difficult this may be as your stress level is mounting, but it is the most important tip to remember.
• Breathe: Most audits generally occur 2-3 years after the IRS has found what they believe to be an error, so you will have time to gather all information and get over most of the fear that an audit brings. Many times audits are a very simple problem to solve; this is even true of severe field audits.
• Hire a professional tax audit attorney: If you face a field audit it is important to remember that you do not have to face it alone. Handling a potentially detrimental field audit alone will make it harder to cope and reach resolution. It is important that you seek professional assistance in the form of IRS audit representation. A professional tax attorney will not only be able to settle your case in the most civil manner, but they will also be available for support. Our Pure Tax Resolution attorneys are available 24/7 to represent you and settle your IRS audit.