What a Tax Attorney Can Do For You

By: Gavin Sanderson

An IRS audit is not a pleasant thing to go through becauseit is cumbersome, time consuming, and in many cases, quite expensive. It is agood thing to hire a tax attorney if you are being audited. Another thing to dois to collect all relevant paper work. It is best to collect all financialdocuments for the year before and after the year of audit, and that year aswell. You must also collect all documentation that can be used to show legitimatetax deductions or tax credit that you may have claimed when you filed yourreturn.

Discuss the whole thing with your tax attorney and make surethat you pay close attention to all expenses that are listed under Schedule E,which covers investment property, and Schedule C, which covers smallbusinesses, and also Schedule A, in case you did not itemize your deductions.Larger items will get more scrutiny and among others they include charitablegifts, mileage expenses, contract labor, and cost of goods that you sold, andso on. Make sure to discuss everything in detail with a tax attorney because heor she can help you find all the right supporting documents required during theIRS audit.

Another thing a tax attorney can do for you is to doublecheck all your returns and supporting documents and make sure you did not omitanything. Tax payers are frequently discovering that they have omitted theinterest or dividend payments from their small savings accounts or brokerages.It can also happen that tax payers entirely forget to declare these itemsbecause the investment company did not send them the required documents. Thereshould be no undeclared income in your papers and in case there is you shouldhave all the supporting documents to explain why it was not reported.

Always keep copies of all your documents to hand over to theIRS because it makes things a lot easier. The IRS agent will prefer to meet thetaxpayer in their home or place of business. The reason is that the IRS agentcan ask for additional documents on the spot instead of having to resort to atime consuming process like correspondence. Since this is convenient to boththe tax payer and the IRS it is a good idea to meet the IRS agent where you caneasily gather all documents as may be required.

Taxpayers are also seldom aware of the real role of the IRSexaminer which is to assess the maximum amount of tax that an auditee is meantto pay. This results in the tax payer being completely surprised when theresults of the audit come back a month later. You must be clear about what isbeing done by talking things over with the IRS examiner.

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