July 19, 2024

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IRS Audit? Have Legal Representation!

For anyone with wealth, tax audits can be one of the most stressful. While the IRS might occasionally conduct random audits, most audits are focused on people with higher incomes.

Wealthier People Get Tax Audits More Aggressive

The House of Representatives Democrats appear to be looking to raise taxes as well as dramatically increase wealth auditing. Online publications Texas New Report (online) and Business Insider (online) both indicate that House Democrats are looking to increase tax revenue. They intend to raise taxes and increase their efforts to uncover tax fraud and discrepancies by more aggressive auditing.

You don’t have to be afraid of being audited, but it is important to be prepared.

How legal representation can help you in a tax audit

Prevention is the best thing that you can do. An experienced tax attorney will examine your financial records to help you reduce the likelihood of being audited.

If you receive a letter informing you that an audit is being performed, it is important to contact a lawyer immediately. It might be tempting to talk to your CPA or other tax expert about the matter but there are many benefits to working with an attorney.

  • Interviewing is not a good idea. An initial letter from the IRS will inform you that you are required to submit to an interview. This matter can be handled by a skilled lawyer. My clients were able to skip this interview. This will help you avoid making costly mistakes.
  • Attorney-client privilege must be maintained. Even if you are innocent of any tax fraud, you should still be able to discuss your financial affairs. If you keep your financial affairs secret, it will make it difficult for your advocate to assist you. Talking openly with your CPA, or other tax specialist may be considered confidential. Any information you share can be used against your in a tax fraud, theft or other tax crime case. Communication with an attorney is confidential. Your lawyer cannot force or make you disclose anything.
  • Strong legal counsel is essential: You need to be able to recognize the significance of the privilege issue. Your lawyer will help you outline your financial details, and plan your response to audit. This type of legal advice is based on intimate knowledge of your financial affairs and can help you avoid serious legal problems.
  • Avoid severe penalties. This is what a lawyer does when they audit a client. They help them avoid serious penalties. Some clients have been accused of serious criminal offenses. A skilled attorney can help you avoid potential penalties that could result from a poorly handled audit.

Violations or criminal convictions can lead to severe penalties and other adverse consequences. A qualified lawyer can help you prepare for an audit. You can also rely on them to guide you through the process and help avoid costly tax penalties.

This article was written by Alla Tenina. Alla is a top tax attorney in Sherman Oaks, CA in Los Angeles California, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.