IRS auditors are not supposed to negotiate a deal with you. An IRS auditor is supposed to ask for information related to your return (in the form of an IDR - information document request), ask you questions and then, with the help of your records:
- Substantiate the information you provided on your tax forms, and
- Make a recommendation on the propriety of your return positions.
The IRS auditor seeks to determine the facts, apply the law to the facts, and then propose the correct result. The auditor is allowed to use judgment, of course. But the auditor is not supposed to negotiate a settlement.
This is why we say that, of all the venues taxpayers can turn to plead their case, the IRS Audit is the least flexible. Sometimes the auditor takes a position which the taxpayer views as completely unfounded. At that point, it is important to know how to terminate the audit in the most favorable fashion so as to proceed to the next level in the IRS: Appeals.
Los Angeles IRS Audit Attorney
At the Law Offices of Givner & Kaye, it is common to be called in the middle of an audit.
The taxpayer and the CPA have hit a bump in the road. Suddenly the CPA, who may be brilliant at preparing returns, must deal with the deeper complexities of tax law, and/or tax procedure, and it is too much. Either the CPA is in over his or her head, or the IRS is being inflexible on a key point, or the facts of the case are so unfavorable that there is just nowhere to turn.
Taxpayers in this situation know they have delayed too long bringing in the best tax attorneys they can afford. Often, that's us.
The best time to call:
When responding to an IRS audit letter, the best time to contact an attorney is ... yesterday.
California Federal Tax Audit Attorney
At this point we have two tactical choices. We can take part in the audit. Or we can terminate the audit, because it is clear that nothing good is happening there. We proceed instead to the Appeals level, where your chances of success may improve.
Part of the art of managing an audit is knowing when to be in the room. Early in the hearing, it's best to have the CPA present your facts. Seeing an expensive lawyer at the beginning of an audit can cause an auditor to think that you are trying to hide something.
Analysis Leads to Desirable Outcomes
Tax audits can be wonderfully successful. Careful analysis often leads to positive outcomes. But the audit is not always the best venue to work in. At The Law Offices of Givner & Kaye, strategy involves targeting the venue where the greatest amount of money can be saved.
For minor tax problems you can go anywhere. For major tax problems, seek the Law Offices of Givner & Kaye. Call or e-mail us to schedule a meeting. Let us put an end to your major tax problems.