You’ve Been Notified about an IRS Audit. What Happens Next?
Businesses and individual taxpayers who are getting audited are normally notified by mail. After you get that letter, you may be wondering why.
There’s a chance that you’ve been randomly selected for an audit. It does happen, but it’s not especially common.
If that’s not the case, then you likely need to speak to a tax lawyer.
As your attorney, Scott Scammahorn will handle every aspect of your audit, freeing you from the endless paperwork and other hoops you’ll have to jump through.
If you received an audit notice, contact our offices today to schedule an initial consultation.
Why Are You Getting Audited?
After receiving an IRS audit notice, this is often the first question people have. Generally, there are a few common reasons individuals and businesses undergo audits:
You Deducted Business Losses
One of the most common reasons individuals get audited is because they deducted business losses on their personal income tax. The IRS keeps a close eye on Schedule C submissions. Scott will help you fight the audit and avoid the need for profit/loss filing again.
You Reported Too Little Income
The IRS knows exactly how much money you make throughout the tax year. If you don’t report those earnings, it may force them to do an audit on your income and tax debt. This could possibly be considered tax evasion.
You Claimed Credits You Didn’t Qualify For
If you itemize and claim deductions you didn’t qualify for, the IRS will investigate. Likewise, if you claim tax credits that you shouldn’t, it will trigger an investigation. This will ultimately force the IRS to perform an audit.
You Misreported Foreign Income
If you work overseas, you may also need to pay US income tax.
Foreign assets universally complicate your tax returns. It’s very easy to misreport or under report your foreign income, and this will lead the IRS to perform an audit.
The Numbers Just Don’t Add Up
Tax returns can get complicated, especially if you itemize every year, freelance, or own a small business. Errors happen, and those errors can trigger an audit. Scott Scammahorn is an IRS audit lawyer that specializes in helping get taxpayers through an audit.
Experienced Tax Audit Attorney for Texas Businesses and Individuals
Scott Scammahorn holds an LLM in taxation law, an advanced jurisprudence degree that helped launch him into a career as a tax attorney and advocate for clients facing audits, tax debts, and other problems.
In addition to his education and years of experience, Scott brings passionate tax advocacy for each of his clients, helping them find a solution that benefits them no matter what it takes.
Scammahorn Law Firm is committed to providing comprehensive IRS audit defense. If you’ve received an audit notice, contact us today to schedule an initial consultation.
Types of Audits
Correspondence Audits
Correspondence audits are both the simplest type. They may indicate that there were minor inconsistencies with your return or that you’ve been selected for a random audit. They’re concluded mostly via mailed correspondence.
Office Audits
In an office audit, you’ll be required to report to your nearest IRS office. There, an IRS agent will review hardcopies of your tax records. They’re often looking for evidence during these investigations, and a tax audit lawyer can help defend you.
Field Audits
If you’re being targeted for a field audit, you should immediately contact a tax attorney to represent you. These audits take place in your home or business, and IRS agents will go through your records, documents, and tax filings to find evidence.
Potential Results of an Audit
No two audits are the same, so the outcome of your audit may be very different than someone in a similar position.
Generally, the best outcome of an audit is for the IRS to determine that you filed your taxes correctly. This is most common with correspondence audits.
More involved audits investigating larger sums of money can have a variety of outcomes. As your audit attorney, Scott Scammahorn will fight for the best possible outcome in your situation.
Offer in Compromise
Generally speaking, an Offer in Compromise (OIC) is a highly sought-after result by individuals and corporations who owe taxes to the IRS. It is an agreement to pay a sum lower than the actual amount you owe.
A Settlement or Payment Plan
If you’re found to have paid less than you owed on your tax bill through no fault of your own, the IRS will typically allow you to set up a payment plan that will allow you to pay your taxes without overburdening your finances.
No Further Action
On some occasions, an experienced IRS audit attorney can convince the IRS to dismiss the audit entirely. The IRS will drop the audit, you will owe no money, and no further action will be taken on your case.
Tax Court
If the IRS thinks there’s a genuine case of tax fraud or tax evasion, they may decide to begin civil–or criminal–proceedings. The outcomes of this case can be very serious. If you’re facing tax court, contact Scott today.
Frequently Asked Questions
What causes you to get audited by the IRS?
A few taxpayers are randomly selected for an audit, but that’s not common. Generally speaking, if you’ve received an audit notice, the IRS has found discrepancies in your tax return and is seeking clarification which they hope to acquire during an audit.
How do I know I’m being audited?
The IRS will send you written notification of the audit, normally via certified mail.
Do I always need a lawyer when I’m getting audited?
If you received notification of an audit, then you should at least consult with an experienced tax attorney. They’ll be able to tell you if retaining their services will help throughout your audit.
What is the audit process like?
The audit process is different, depending on the type of audit. Some are conducted entirely via the mail. Others may require you to visit your local IRS office. Field audits will be conducted at your home and place of business.
How serious is an audit?
A lot of people are scared of getting audited. They can be very serious. For most people, though, they’ll wind up owing the IRS some money, plus penalties, interest, and fees for late payment.
However, in some cases, the IRS may open a criminal lawsuit and pursue you for tax evasion or tax fraud.
In either case, consulting with a tax attorney can help improve your potential outcomes.
How do I fight an IRS audit?
While it’s possible to fight an IRS audit alone, an experienced tax attorney can help ensure you get the best outcome possible. The IRS is a big agency with a lot of resources to throw at you, and an experienced IRS audit attorney will be able to give you the edge you need.
Schedule a Consultation with a Texas IRS Audit Attorney
If you’re facing an IRS audit, contact Scott Scammahorn today to schedule an initial consultation. We offer online and phone consultations throughout the state of Texas. In-person consultations will take place at either our Tyler, TX, or Dallas, TX, offices.
