You Don’t Have to Face the IRS Alone
If you’ve received an IRS audit letter, the experienced tax attorneys at Wiggam Law are here to help ensure that you respond correctly and provide you with tax audit representation. You don’t have to face the IRS alone.
When You Get the Dreaded IRS Audit Letter
The IRS conducts thousands of organization and individual tax audits every year in an effort to ensure financial information is accurate according to tax laws. The IRS reviews and examines documentation, reports, accounts and financial information to confirm the tax report is correct.
The IRS is required to contact you via mail to inform you of a tax audit. The Notice of Audit and Examination Scheduled explains that your return has been chosen for a tax audit. The audit letter will describe the type of examination, as well as necessary documentation and deadlines.
There are three types of audits:
- Correspondence Audit – The entire audit is conducted through mail and phone conversations.
- Office Audit – The audit takes place at a local IRS office.
- Field Audit – The IRS examiner visits your home or place of business.
The type of audit will determine the depth of the audit, as well as how long it will take.
Our professional tax attorneys at Wiggam Law can help you fill out the correct forms, organize documentation, and defend your tax return and deductions.
What Are the Chances of Getting Audited?
With all the horror stories circulating, it’s certainly scary to think about getting audited by the IRS. However, it’s highly unlikely that you will be audited in your lifetime.
While the IRS audits hundreds of thousands of taxpayers every year, the number of audits only adds up to less than 1% of US taxpayers.
Who Gets Audited the Most?
The IRS most often audits the taxpayers who find themselves on opposite sides of the spectrum. Taxpayers who earn less than $25,000 and high income taxpayers who earn an Adjusted Gross Income of $10 million dollars or more are most likely to get audited.
What Causes You to Get Audited by the IRS?
The IRS has two main methods for choosing taxpayers for audit:
- Random – The IRS randomly selects thousands of returns each year. As part of its National Research program, the IRS is able to track overall compliance.
- Computerized Screening Techniques – The IRS compares returns against national norms. When returns are outside the norm, they are flagged for audit.
IRS Audit Triggers
The IRS has several red flag areas in which they have realized less compliance. Common red flags for an IRS tax audit include:
- Reporting High Income
- Underreporting Income
- Taking Large Charitable Conations
- Failing to Report Foreign Income
- Home-Office Deduction
- Claiming rental losses
- Not Filing a Tax Return, Especially WhenThere Is a High Income
- Business Use of an Automobile
- Filing Schedule C for Sole Proprietors
- Taking an Early Payout From an IRA or 401(K)
- Acquiring Cryptocurrency
- Reporting Business Losses
- Taking an Alimony Deduction
- Deducting a Large Amount of Business Expenses
- Operating a Business With a Lot of Cash Transactions
If you have included any of these in your tax return, it’s best to have accurate documentation and precise justification.
While they expect accuracy in all areas of tax reporting, the IRS is especially detailed in these areas. They require accurate figures and sufficient supporting details.
How Do You Know You’re Getting Audited by the IRS?
The IRS is required to send notice via mail. You will receive a Notice of Audit and Examination Scheduled. It will inform you that you are being audited by the IRS, and what type of audit they are conducting. It will also explain the specific items on your return that need to be reviewed, as well as the records they need in order to review your account. For instance, the auditor may send you an IDR request on Form 4564.
What Does the IRS Audit Letter Look Like?
In order to avoid scams, make sure the IRS audit letter contains the following:
- Your Full Name
- Taxpayer/SS ID Number
- Form Number
- IRS eEmployee ID Number
- IRS Contact Information
This letter should clearly identify the primary reason for the audit and what documents you will be expected to provide.
How Far Back Can the IRS Audit You?
In general, the IRS has three years from the date you filed your return to audit it. However, if they suspect a substantial error, specifically a large amount of underreported income, they can go back up to six years.
IRS Tax Audit Defense
When you find yourself in a tax audit with the IRS, the tax attorneys with Wiggam Law can provide you with tax audit defense.
We provide this service to help you understand your situation and develop a strategy to defend your return. Our professional tax attorneys will address communication with the IRS and assist you during all audit appointments.
In an effort to save you time and money, Wiggam Law provides experienced and knowledgeable tax audit defense.
What Is Tax Audit Representation?
Tax audit representation, otherwise known as tax audit defense, occurs when legal professionals act on the behalf of the taxpayer during an IRS audit.
Instead of facing the IRS on your own, the professional tax attorneys at Wiggam Law assist you during the entire process to defend your tax return.
Why Get Tax Audit Representation?
The benefits of tax audit representation are endless. Most importantly, tax attorneys are educated and familiar with IRS procedures, which ultimately saves you time and money.
If you get an audit notice, a Wiggam Law tax attorney can develop a strategy to reduce penalties and protect your rights.
In addition to saving time and money, tax audit representation from a knowledgeable tax law attorney has several other benefits that help:
- Protect Your Rights
- Understand the Extent of IRS Audit
- Take the Pressure Off
- Avoid Errors
Wiggam Law provides the professional and experienced tax audit defense that you need to get the best results for your tax audit.
Wiggam Law Tax Audit Representation Services
Wiggam Law tax attorneys provide an unmatched level of tax audit representation. We listen to our clients, and pay special attention to each unique situation.
Responding to an IRS audit notice in a timely manner with the correct information is the first step toward a quick and favorable resolution. If you’ve received an IRS audit letter, the experienced attorneys at Wiggam & Geer can help you write an appropriate response and prepare you to face the IRS.
Tax Audit Defense Success Stories
$542,852 Saved
The taxpayer did not file income tax returns, or C corp. tax returns for her business, from 2006 to 2012. The IRS audited her and the business and assessed total taxes of $609,175 and a fraud penalty of $56,783. We contested these audit assessments in Tax Court and successfully removed the fraud penalty in its entirety and reduced the tax balance to $123,106 for a total savings of $542,852. We then filed an offer in compromise on behalf of the taxpayer and settled the remaining $123,106 tax liability for $33,410.
$99,802 Saved
Our client had a complicated travel and mileage audit with the United States Tax Court. Unfortunately, he had minimal records and no official travel log. We diligently worked with our client to obtain as many additional records and circumstantial evidence as possible and negotiated with the Internal Revenue Service Counsel, successfully settling the case for $12,748 from $112,550.
80% Saved
We filed a U.S. Tax Court Petition for our client that had an alleged federal corporate income tax liability. The liability stemmed from the IRS auditor who disallowed many of our client’s business expenses. In the end, we achieved an 80% reduction of our client’s liability when the IRS settled, reinstating the majority of the business expenses and abating all penalties.
$123,000 Saved
Our clients, husband and wife, received a Notice of Deficiency from the IRS for tax year 2016. The IRS was proposing to assess tax, penalties, and interest totaling $146,759 following an audit related to unreported stock sales. The taxpayers did not have all of the records to substantiate their costs; however, we were able to successfully settle in the United States Tax Court with the IRS for $23,104, saving the taxpayers over $123,000.
Contact Our Tax Attorneys in Atlanta, GA
The Wiggam Law tax attorneys can evaluate your situation and represent you during your tax audit process.