Most taxpayers will never get audited. In 2021, the audit rate for taxpayers with income under $1 million was less than 1 percent. But tax audits have a reputation that precedes them, and getting an audit notice in the mail is enough to make a person’s blood run cold. If you’re one of the unlucky few, you may not know what to expect from an IRS tax audit or state audit.
Very few audits are random. Most often, audits happen because of certain red flags that put the IRS or state taxing authority on alert for fraud or errors. Examples include:
It’s possible for an audit to wrap up quickly and easily, but many audits get complicated in a hurry. Finding the right tax audit lawyer for audit representation can relieve your stress and give you confidence that your problem will be properly resolved with the IRS or taxing authority. Not all tax lawyers specialize in audit defense, so it’s important to know how to find the right tax audit representative.
Why do we hire professionals with specialized training? Because they know all the details and potential pitfalls of the job, and that experience and expertise carries a lot of value. You might be comfortable changing the oil in your car, but if your head gasket is leaking, you most likely need a mechanic to make that complicated repair. A professional should have the right tools, the valuable experience, and knowledge of the right strategies to use when something goes wrong. The same is true for tax professionals.
Tax audit representation can be invaluable for getting through your tax audit. A good tax lawyer should be intimately familiar with the tax code and IRS procedures. They should remain cool under the pressure of the IRS’ scrutiny, helping you find the records you need, communicating with the IRS for you, and negotiating on your behalf when problems arise. If there is a threat of criminal charges, such as tax fraud, you will absolutely need a lawyer.
Your time is valuable as well. What may take hours and hours for you to accomplish will be much faster in the hands of a professional. Instead of spending many hours of your time and stressing over tiny details, you can have the confidence, peace of mind, and time savings that come from hiring a pro.
With that said, there are different levels of tax audit, so it’s important to know what you’re dealing with. For a simple desk audit or mail audit, you may not need representation.
If you’re unable to provide the documentation or records that the IRS is looking for or uncertain how to gather them, a tax lawyer can help with the explanations, negotiations, and level of organization needed to satisfy the audit. As an audit becomes more complicated, this type of support becomes increasingly important.
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When you choose representation for something as serious as a federal or state tax audit, you need to know that you’re in good hands. So, how can you tell if you’ve found a good tax attorney to provide your audit defense? Here are some useful questions to ask a lawyer before committing to their services:
A good tax attorney will have no trouble giving you complete and forthright answers to all these questions and more. And if an attorney offers a free consultation, there’s no downside to having a conversation about your tax audit and find out if hiring an attorney is the right move for you.
RELATED: Tax Audit Representation
S.H. Block Tax Services is rated A+ by the Better Business Bureau. Founding Attorney Stanley Block has over 50 years of experience practicing tax law in the state of Maryland, and our firm has more than 100 years combined experience with tax resolution. We have on-site attorneys at three convenient locations in the state of Maryland (Annapolis, Baltimore, and Columbia), and we offer our services on a flat-fee basis.
What sets our firm apart is that we truly care about our clients’ success – and we prove it through our approach to communication and customer service. We know that tax issues, especially tax audits and tax debt, can be crushing problems for our clients. We have compassion for you, understand your situation, and will do everything we can to help you get back on track.
Each client comes to us from a unique background, and we want to learn about that background and build a strong relationship with you so that we know how to find the best solution to resolve your tax issues. When you work with our team at S.H. Block Tax Services, you can feel confident that we’ll work tirelessly to help you, drawing on our extensive experience and expertise to save you money and time.
RELATED: Maryland Tax Preparation Services
If you’re facing a stressful tax audit and need the help of a tax lawyer, call us at (410) 872-8376 or contact us online to schedule your free consultation and ask us anything that’s on your mind. We want you to feel confident that the tax lawyer you choose is the best one for you.
Or, learn more about our tax audit representation services.
Reference
Internal Revenue Service. (2022, May 6). IRS Statement — Updated IRS audit numbers [press release]. Retrieved from https://www.irs.gov/pub/irs-utl/statement-for-updated-audit-rates-ty-19.pdf
The content provided here is for informational purposes only and should not be construed as legal advice on any subject.
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