Receiving notice that you’re being audited by the IRS can be overwhelming and intimidating. It can be difficult to know what concerns the IRS has with your prior returns or tax payments and what additional information they may want to review. Having an attorney available to assist you in responding to inquiries and navigating the audit process can save you time and emotional energy.

An IRS audit is a review of your financial information in order to confirm that your circumstances were reported correctly and that you paid the correct amount of tax owed to the federal government. You may be flagged for an audit as part of an existing IRS investigation (for example, your business partners are also being audited) or as part of a random selection. Typically, as part of notification of an audit, the IRS will send you a list of documents they are requesting to review, including company financial records, invoices, receipts and other proof of expenses. Sometimes this information can be sent to the IRS electronically and other times an in-person interview may be required. At the end of the audit, the IRS auditor may determine you have reported your financial information incorrectly or without adequate documentation and may determine that additional taxes need to be paid. If you disagree with those findings, you can request a conference with an IRS manager, seek mediation or possibly file an appeal. 

Throughout this process, a tax law attorney can help you to evaluate the IRS’s requests and analyze what concerns the IRS may have about your financial information, including whether they are investigating for possible criminal intent. A tax attorney can also help you to navigate the confusing terminology and documentation requests that the IRS often makes and negotiate with them over reasonable response times and follow-up. In the event the IRS determines that additional money or penalties are owed, a tax law attorney can assist you in negotiating with the IRS to resolve these matters, including by providing a compelling explanation for mistakes that may have been made. Should you have a dispute with the IRS’s findings, an experienced attorney can also help you navigate follow-up conferences, mediation or appeals.

No one likes to receive notice that they are being audited, and in the face of numerous requests from the IRS, it can be easy to become confused and overwhelmed about how to respond. An experienced tax law attorney can help you take a step back and carefully evaluate what is going on with your audit in order to make sure that your best interests are represented throughout the process.

At Anker Law Group, P.C., we represent individuals and companies who have been contacted by the IRS about a pending audit into their financial affairs. Whether you have worked with us previously on tax issues or are looking for a new attorney to help you in reviewing and responding to the audit request you received, please call our Rapid City office at 605-519-5967 or contact us online anytime.