The start of tax filing season often brings out the worst fears in people over the satisfaction of their income tax filing and tax payment obligations. Perhaps its perceived mistakes made on filings from years past or simple anxiety regarding documents filed under the penalty of perjury, but most people would do anything to avoid facing an IRS audit or examination. Despite this fear that is common in our society, many people still decide to prepare their taxes themselves. Others, at the time, may think that their income is but a drop in the bucket the IRS and U.S. government and therefore their non-compliance will go unnoticed.
Unfortunately, nothing can be further from the truth. Over the past decade or more, the IRS has made significant investments into technologies designed to identify and flag potential undeclared income, understated income, and an array of other inaccurate filings. Taxpayers who believe that they won’t be noticed and can get away with misstatements on their taxes often find themselves facing an IRS examination that could result in large penalties or, depending on conduct, a referral to IRS Criminal Investigations.
The experienced tax lawyers of the NewPoint Law Group can assist with correcting past unfiled taxes, misfiled taxes, and tax mistakes before they turn into an audit. If you have already received an audit letter from the IRS, we can assist you in getting you financial records in order to proceed smoothly through an audit or to limit the potential consequences. To schedule a confidential consultation with our experienced tax attorneys call 1-800-358-0305 or contact us online today.
Why Are People Selected for an IRS Audit or Examination?
There are a number of reasons as to why people can face an audit by the IRS. Sometimes, it simply comes down to bad luck and the individual is selected for a tax audit randomly. In other circumstances, the reason for the audit may come down to some characteristic about that individual that results in a higher than average likelihood of facing an audit. For some people, it can be a particularly high annual gross income. For others, the fact that they are a small business owner of a cash business or a business in an industry where tax noncompliance is common can be enough to trigger an audit.
Other times, an audit occurs due to actions or lack of action taken by a taxpayer. Consider that individuals who report zero income are, on average, audited more than any other income bracket save for those with large annual incomes. Some taxpayers believe that they can simply round numbers reported on their W-2 or 1099 income to make the math easier. Since the IRS engages in processes known as information and form matching through computerized systems, inaccuracies of this type are easy for the agency to spot. Likewise, the failure to include one or more sources of income is also easy for the IRS to spot.
What Consequences can I Face After an Audit?
While people seem to simply fear the possibility of an audit, the real concern is probably what may result from an examination by a trained IRS agent. In cases where the taxpayer has complied with all tax filing and payment obligations and does not raise flags with suspicious behavior, the audit may result in no consequences for the taxpayer. However, if the taxpayer has failed to satisfy certain obligations, there is a high likelihood that he or she will face fines, penalties, and significant amounts of interest on the unpaid taxes. Furthermore, if the taxpayer intentionally or voluntarily took steps to avoid tax obligations include attempts to conceal the activity, there is a likelihood that the taxpayer may be referred for prosecution to IRS Criminal Investigations (IRS CI). The experienced tax lawyers of the NewPoint Law Group can increase the likelihood that your audit will not result in any nasty surprises and decrease the chances that you’ll face potential criminal penalties.
Rely on Our Tax Attorneys and Their Experienced Handling of Tax Audits in Folsom
Our experienced and dedicated team of tax lawyers can handle your IRS audit providing peace of mind that you are in good hands. To schedule a confidential consultation with our legal teal call 1-800-358-0305 today or contact us online.