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How a Lawyer Can Assist Your Business During an Audit

By Harold Obrien posted 02-08-2021 02:15 AM

  

LA Lawyers mention the many different roles attorneys have, ranging from  IRS audits and tax issues to personal injury claims and truck/vehicle accidents. They provide a bevy of services to a wide range of clients. 

If you think you may receive an audit regarding business’ taxes, it’s best to prepare and seek professional assistance; that means looking for a lawyer or certified public accountant. 

When to Get a Tax Lawyer

Taxes are time-consuming, and many people complicate them. That’s why you should know when to get a lawyer or certified professional to help you if you receive a tax audit. They can help you determine whether your case will require an in-person meeting with a federal agent or not. 

According to TaxDefensePartners, there are three common situations in which you might receive an IRS audit. First, the investigators may wish to analyze your records by random selection, even if you don’t owe extra taxes. If this happens, you shouldn’t worry that you’ve incorrectly filed, but rather complete the process as the audit requests. 

You might also receive one if your partner or company does. This is called a field IRS audit. In this situation, an agent will likely visit your business, and you should prepare to present tax records from at least the last three years. 

In-office audits also require a meeting with an agent, so you may prefer to have an attorney-at-law represent you. Your case type should be clearly marked on the letter you receive. 

How Much it Will Cost 

This depends on the particular services you require and how many hours you contract a lawyer or other qualified professional. Many representatives require an hourly rate, so they won’t charge you for the amount of work they don’t do.  

If you conduct the audit by yourself, it shouldn’t cost anything. You can do this by gathering the required documents they request and faxing them to the correct address. 

If you feel that you’re unable to complete the audit alone, reach out to a qualified firm or tax professional. Visit the IRS website for more information on how to fill out your forms and submit them. 

How to Know If an Audit Is Legitimate 

Initial contact from the IRS is always made by mail, so don’t give personal tax information by email or telephone. You have the right to contest results and to representation. 

You can also request extra time to file. An automatic 30-day one-time extension is common, but the IRS won’t extend your case beyond 90 days. 

What Documents Will I Need?

You’ll need your return from the corresponding fiscal year and any other documents they request. It’s best to keep records for up to three years or more, minimum. They may also request checks, receipts, legal papers, loan agreements, and additional documents that pertain to your business. 

Being over-prepared is an advantage when it comes to taxes. Consult an agent if you’re unsure of the details of your case. 

Closing Remarks

Tax lawyers deal with a variety of cases and can help you complete an IRS tax audit. You’ll need your return from the year they request and any supporting documents they require. It’s best to organize all of your financial documents by year and type to be prepared when you need them most.

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