Partnering with you through the Audit Process
Looking in the mail and finding an IRS or State audit notice is an anxiety provoking experience. Especially when 280 E deductions are involved. The stress and unease of receiving a tax notice leaves most people panicked.
Emotions like these are not irrational, but with expert audit representation from a knowledgeable tax attorney, you can avoid the many pitfalls that can lead to financial devastation.
The IRS can and does have far-reaching powers to turn your personal and business world upside down. Some of the possible penalties the IRS can hold you accountable for are:
- 20 percent penalty – You can expect to pay this on the portion of any tax underpayment associated with negligence, disavowing IRS regulations, or a significant understatement of tax liability.
- 75 percent penalty – Watch out if you’ve made a serious underpayment to the IRS through fraud. You can be hit with a 75 percent penalty in this situation and it is up to you to prove that your underpayment is NOT fraud. If you can’t prove this to the satisfaction of the IRS, you can expect to pay 75 percent penalty on the entire underpayment.
- Interest – If the IRS charges you with fraud, failure to file on time, negligence, or undervaluation of your property, you’ll also have to pay interest that accumulates from the time your return was due – including extensions – until the day you pay your penalty. In some cases, no interest is charged if the penalty is paid within 21 days.
- Incarceration – Serious cases of tax evasion can bring more significant fines, loss of assets, and even in some cases prison time.
Our law firm provides top notch representation in an audit. We assist individual and business taxpayers with all aspects of examinations including 280E deductions, proposed assessments, offers in compromise, sales, use, and employment tax matters, penalty abatements, protests and appeals.
We understand the entire audit process and, as such, we always find innovative ways to negotiate and find solutions to your tax issue. We believe that the tax audit is your opportunity to convince the State or IRS that your return is correct. Many taxpayers instinctively turn to an accountant to represent them during audits, but this is often the wrong choice. Mistakes made during the audit can leave you no choice but to litigate and may seriously damage your chance of success.
Our tax attorney holds an advanced degree in tax law and understands the nuances of audits. He will stay by your side through every step along the way. Our firm will establish facts and law that will benefit you in every phase of the audit process and, if necessary, beyond. Let us assist you in your audit to maximize your tax position and minimize your personal and business exposure during an audit.
After receiving an audit letter, it is essential that you contact a tax attorney immediately. Let us help.