IRS audits remain an important tool to help determine whether income, expenses, and credits are reported accurately. These audits help governing agencies like the Internal Revenue Service (IRS) identify taxpayer errors and detect tax fraud. According to statistics from the Compliance Activities Report compiled by the IRS, there were over 771,000 tax returns audited by the IRS in the Fiscal Year of 2019. If you receive notice of an IRS audit, it is imperative that you hire an experienced Texas tax law attorney to protect your rights and guide you through the entire audit process.
Here at my firm, the Law Office of Joseph Onwuteaka, P.C., I am committed to providing experienced legal services for a variety of different tax-related issues. As your legal counsel, I will help you navigate the audit process, work hard to protect your financial resources, and help you work toward a swift and fair resolution. If you need help resolving tax issues with the IRS, I can offer you the detailed legal guidance and advocacy you need to navigate important decisions.
I am proud to offer reliable tax-related legal services to clients throughout the Houston area, including Harris County and the surrounding communities.
An IRS audit can be described as an examination or review of your tax returns, information, and accounts to ensure or verify that you are reporting your income, expenses, and credits accurately and complying with all required tax laws. The IRS may decide to carry out a tax audit in order to reduce the “tax gap.” An audit can also be completely random or based on suspicious activity.
Some of the most common reasons for an IRS audit include:
Making math or data entry errors when calculating your taxes
Failure to report certain income
Claiming too many charitable donations or reporting false donations
Reporting too many losses
Reporting too many business-related expenses or deductions
Claiming non-existent dependents
Using nice, neat, round numbers
Home office deductions
If you have been selected for an audit, you will receive an official notification letter from the IRS. Depending on the level of severity, the IRS tax audit may be a correspondence, office examination, or field audit.
This is the least intrusive form of an audit. The correspondence audit focuses on minor issues such as routine math errors, omitted income, missing paperwork, or questionable deductions. Generally speaking, this type of audit can be completed relatively quickly and painlessly.
An office audit will be done in-person by IRS personnel, often by a revenue agent or tax compliance officer. The office audit will be conducted during a scheduled appointment at an IRS office. The revenue agent or tax compliance officer will determine whether you reported all of your income accurately and ensure that your deductions are valid.
This is the most comprehensive tax audit. The field audit is conducted by a revenue agent and involves scheduling an in-person interview, examining your records, and certifying that your tax returns are accurate. If you are a business owner, the revenue agent may request a tour of your business to better assess whether your tax records have been accurately kept and reported. The auditor will likely ask for documents on a form referred to as an Information Document Request (IRD).
At the end of the audit, the revenue agent will provide a detailed Revenue Agent Report (RAR). The report will propose possible tax chances and additional tax due, if any. However, if your numbers are accurate, you may get a “no change” report. On a few occasions, the results of the audit may require the IRS to refund the taxpayer.
The auditor’s report doesn’t indicate the final verdict. If you disagree with the report, you can file a petition in tax court. Hiring an experienced tax attorney to represent you during these proceedings can have a significant impact on the outcome of your case. Your attorney can present the facts of your case diligently, protect your rights, and work hard to pursue the best possible outcome.
An IRS tax audit can spring up for a variety of different reasons. If you are faced with the prospect of navigating the complicated tax audit process, receiving proper guidance and legal representation from a skilled tax law attorney is crucial. As an experienced Texas tax law attorney, I can help protect your rights, your finances, and help you navigate key decisions along the way.
For over 30 years, I have devoted my career to offering comprehensive legal guidance and reliable representation to taxpayers facing different types of IRS and Texas tax issues. As your attorney, I will help you understand your personal situation, explore all possible legal options, and help you navigate the auditing process from start to finish. Using my extensive experience, I will fight vigorously to protect your rights and help you seek a solution that meets your needs.
If the outcome isn’t what you were hoping for, I can also help you appeal the judgment or negotiate a fair resolution with the IRS on your behalf. When you choose to work with my firm, the Law Office of Joseph Onwuteaka, P.C., you can rest assured that I will work diligently to resolve the issues you’re up against and help you fight for a resolution that allows you to move forward. Don’t face your tax issues on your own. Call or reach out to my office today to get the legal guidance and support you need.
If you have received a notification from the IRS requesting a tax audit, do not panic. Contact my firm – the Law Office of Joseph Onwuteaka, P.C. – today to schedule a one-on-one case assessment. I will offer you the comprehensive legal counsel and strong advocacy you need to navigate every step of the auditing process. My firm proudly serves clients throughout the Houston area and Harris County, Texas, so call or reach out today for help!