Taxpayers could face negative circumstances that could lead to the seizure of their bank accounts and future tax refunds. These circumstances arise when the IRS identifies issues with the taxpayers' returns. An audit representation
could lead to these negative effects if the taxpayer doesn't manage their tax implications quickly.
How to Manage a Tax Audit
The taxpayer must contact a tax attorney as soon as they receive the notification of the audit. This is their first line of defense against a possible seizure of their assets. The attorney could review their tax records to determine if the findings of the audit are valid. They could also identify techniques for discrediting the agency's claim
against the taxpayer. This could include presenting new information such as images of their workspace or thorough records of their yearly expenses.
What Could Happen During the Audit?
If the IRS finds a large amount of unpaid taxes, they could place a lien against the taxpayer's property and assets. This lien could prevent the taxpayer from accessing accounts such as their checking or saving account until the taxes are paid in full. The IRS could also seize personal properties to acquire the money owed by the taxpayer. This could include their real estate property or automobiles. The IRS audit lawyer evaluates all possibilities to prevent these negative actions against the taxpayer.
Why Should the Taxpayer Talk to an Attorney?
An attorney understands how the IRS works. They understand applicable laws that could assist the taxpayer and prevent a negative outcome. They utilize these laws to find the most effective option for protecting the taxpayer and their assets. This could include negotiating with the federal agency to arrive at a lower value that is more affordable for the taxpayer.
Arranging a Settlement Offer
During an IRS Audit, the attorney can work with the IRS to establish a lower value. If the taxpayer owes a large amount of back taxes, it is possible to acquire a settlement offer. This settlement could be paid in one lump sum or through payments. The attorney works out the fine print with the IRS to prevent further legal action against the taxpayer.
Taxpayers must follow all tax laws when filing their tax returns. These steps are necessary to report all incoming earnings for the tax year. They are required to calculate the total taxes the individual should have paid. Taxpayers who need to prepare for an audit should contact an IRS audit attorney for further assistance.