For Virginia professionals, being targeted by the IRS for a tax audit can be a daunting prospect. With an audit, the IRS can challenge a professional’s tax reporting on his or her business income. And the taxpayer could face additional taxes, interest and penalties at the end of the process.
Fortunately, Virginia IRS audit lawyer Kevin E. Thorn can ease the audit process and protect the taxpayer’s rights. While there are ideal steps for anyone to navigate an audit, professionals should have the representation of a qualified tax attorney throughout the process.
Best Practices for Resolving IRS Audits
While every audit will be different, there are some common principles that Virginia professionals should follow when responding to IRS audits, according to an experienced Virginia IRS audit lawyer.
Prompt Review and Response to Audit Notice
A taxpayer who receives an IRS audit notice in the mail should promptly open and review the notice. The notice will specify which items in their tax return are being examined and provide a deadline to respond. If the taxpayer fails to respond, the IRS could automatically adjust their tax liability.
At this point, the assistance of a knowledgeable Virginia IRS audit lawyer is invaluable. The attorney can more specifically identify the areas flagged by the IRS and help the taxpayer locate the proper responsive documents.
Provide Only Requested Documents & Information
While it is best to be polite and professional with the auditor, it is important to remember an audit is an adversarial process. The taxpayer should not provide information without consulting with Virginia IRS audit lawyer Kevin E. Thorn so the IRS cannot use this additional information against them.
We advise taxpayers under audit to speak with a tax attorney, not the IRS. Professionals under IRS audit should only provide the specific documents requested in the audit notice. And if they sit down face-to-face with their auditor, they should only answer the specific questions asked by the auditor, not volunteering additional information. Better yet, they should have their tax attorney handle the face-to-face audit for them.
In this setting, it makes even more sense to have the representation of a qualified IRS audit attorney. Under a power-of-attorney agreement, your attorney can deal with your auditor directly on your behalf. And even if you choose to answer questions yourself, your attorney can be there to advise you.
You Have Taxpayer Rights that a Virginia IRS Audit Lawyer Can Help You Understand
Taxpayers are not merely at the mercy of the IRS during an audit. Taxpayers have important rights with respect to how audits proceed. One such right is to be treated with professional courtesy and respect during the audit. Another is the right is to retain counsel to represent them during the audit.
Be Ready to Appeal or Litigate Unfavorable Decisions
When the ultimate decision on the audit is unfavorable, the taxpayer may wish to appeal. If the appeal is unsuccessful, the taxpayer may still pursue litigation in federal courts, including the U.S. Tax Court.
Contact Virginia IRS Audit Lawyer Kevin E. Thorn at Thorn Law Group
If you are a Virginia professional under IRS audit, contact the Thorn Law Group today to speak with a Virginia IRS audit attorney. When the tax liability of your business is at stake, you will need a top-notch tax attorney with audit experience. To schedule a consultation, contact Kevin E. Thorn, Managing Partner, at 703-752-3752, or by email at ket@thornlawgroup.com.
