Facing an audit by the IRS can be unsettling, to say the least. These are complex matters that could dramatically influence the overall viability and success of your company for years into the future. If an audit turns out unfavorably, your company may face paying taxes and additional interest or penalties. You need a tax attorney who can completely protect your rights and interests.
Contact the firm at (800) 265-2314 for a free consultation regarding your IRS audit.
About Business Tax Audits
A tax audit is an IRS investigation into the financial records of a business for the purpose of enforcing current tax laws. Audits can be triggered by improper filing, inaccurate reporting, attempted tax evasion, and other discrepancies discovered in a tax return. These discrepancies may cause the IRS to question whether the information on a tax return is incorrect or misrepresented, thus demanding further examination.
If the results of the audit indicate that there were no errors on the original return, no further action is required on the part of the business. If the audit determines that false or incorrect information was reported, however, the business is responsible for locating and submitting any required documentation and paying any owed funds and applicable interest to the IRS.
Types of IRS Audits
There are four primary types of IRS audits:
- Correspondence Audit: A correspondence audit is generally the least complicated, most straightforward type of audit the IRS can perform. Typically, the IRS sends the taxpaying business a written request requiring the company to produce relevant receipts, canceled checks, and other such documentation that provide additional information regarding a specific area on the tax return. Documentation and communication regarding a correspondence audit are usually managed via the postal service.
- Office Audit: An office audit occurs at the company’s local IRS office. The IRS will request specific documents to be brought to the office to perform the audit in person. The documents will be used to determine the business’s compliance with tax laws regarding lawful income reporting and the correct amount of taxes paid or owed.
- Field Audit: A field audit involves an IRS representative coming to the business or office where the tax return was prepared for the purpose of conducting a face-to-face investigation of the return. A field audit is considered a more serious, comprehensive review of the company’s tax return.
- Taxpayer Compliance Measurement Program (TCMP) Audit: This is the most exacting process a business can face and requires an extensive investigation into the entire tax return. Documents must be acquired to substantiate all the data on the tax return. The results of these audits are compiled for statistical purposes.
Why Hire a Tax Attorney for My Company’s IRS Audit?
There are many benefits to having a tax lawyer handle your company’s IRS audit. A tax attorney can explain your rights and what to expect during the audit process. It is also beneficial to have an attorney present for certain reviews, such as field and TCMP audits.
A skilled lawyer can also ensure that you do not give the IRS unnecessary documents or information unrelated to the specific investigation, which could potentially create additional problems for your company, such as another audit. Depending on the type of audit being done, a tax attorney can be present for the auditing process with the client and the IRS representative to ensure the client’s rights are protected. If a company or business owner moves forward with the audit without legal representation, the auditing process can be stopped at any time for the taxpayer to obtain legal counsel.
Why Pearson Butler?
The attorneys at Pearson Butler have over 300 years of combined experience and possesses extensive knowledge on current tax laws. Proficient in the tax process, including the programs available with the IRS for negotiating debt settlement for businesses across a wide range of industries, the firm is prepared to handle a variety of IRS-related situations.
Pearson Butler can negotiate circumstances involving the following, and more:
- Property liens
- Offshore bank accounts
- Payroll trust fund complications
- Back tax debt issues
- Delinquent tax returns
Seasoned tax attorneys can advise businesses on how to organize and gather documentation requested by the IRS. Professional guidance simplifies the steps and allows the auditing process to happen as smoothly as possible.
Experienced Guidance through the Entire Tax Audit Process
When you work with Pearson Butler, your attorney will fully prepare you for your audit so you know what to do and what not to do to positively impact your case. If your attorney can represent you at your audit, he or she will do so. Everything possible will be done to ensure your company’s tax audit goes as smoothly as possible.
If the results of your tax audit determine that money is owed to the IRS, your attorney may be able to negotiate the terms of the reimbursement to make the process more manageable for your company.
This can be done in several ways:
At Pearson Butler, we understand that facing an IRS audit can be stressful, confusing, and overwhelming. Pearson Butler has multiple offices to ensure companies across Utah have convenient access to experienced attorneys. With extensive expertise, Pearson Butler can provide your business with the legal protection necessary for dealing with any type of IRS or tax concern.
Call (800) 265-2314 today to discuss your audit and how Pearson Butler can help.