IRS & State Audits
The IRS’s primary function is to verify that taxpayers correctly report their tax liabilities.
Most audits are conducted from the IRS service centers that are located throughout the U.S. These audits are often handled via correspondence with the IRS. Other audits are handled in person at the IRS’s offices or at the taxpayer’s home or business.
The IRS has developed formal processes for conducting these audits. At a high level, this generally includes asking for information, making tax adjustments, and closing the audit. This in turn starts the formal appeals process and may even require litigation.
It employs thousands of IRS agents who are trained to spot problems with tax returns. They are also trained to spot nuances where our tax laws are ambiguous, but which can produce additional tax adjustments in the IRS’s favor.
Given that they often encounter questionable returns (which are selected for them by the IRS computers), most agents expect to see problems the tax returns they examine. This presents a situation where taxpayers and their tax returns are considered to be wrong until the taxpayer proves their tax returns are correct.
For the uninitiated, these procedures and seemingly hostile IRS agents are not easy to deal with. This often results in misunderstandings and these misunderstandings typically end up benefitting the IRS. We can help with this. We handle IRS audits and work with IRS auditors daily.
Please contact us immediately if you are under audit by the IRS or received a letter or were contacted by the IRS about an audit.