Facing a “tax audit” can immediately evoke stress and apprehension. Upon receiving notice of an IRS or state tax audit, it’s crucial not to delay in reaching out to a qualified tax attorney. Swift resolution increases the likelihood of preventing more severe issues such as liens, property seizures, asset complications, and potential criminal tax prosecution down the road.
At Bannon Associates, PC, we stand ready to advocate for your best interests during a tax audit, whether initiated by the IRS or a state agency like the Michigan Department of Treasury. Attorney Kevin M. Bannon, leveraging his extensive background in tax law, is dedicated to guiding you through the entire audit process.
What to Expect in a Tax Audit:
Tax audits can take various forms, ranging from a written request for additional documentation (a “correspondence audit”) to an in-person meeting (an “office audit”). An office audit, the most serious type, involves IRS personnel visiting your place of business. Audits aim to verify the substantiation of claims made on your tax return, either randomly selected or to address specific issues.
Navigating the Audit Process:
When facing an in-person meeting, it’s crucial not to go alone. Bringing an experienced tax attorney ensures familiarity with the process and provides you with an advocate, making the experience less stressful and more manageable. People often find themselves asked for more information than necessary, and the IRS may request specific details. Consult with your attorney before providing any non-required information to avoid potential pitfalls.
To streamline the audit process, maintain all records used to prepare your tax return for the past three years, as required by law. Consult a tax attorney to fully understand your rights during both IRS and Michigan Department of Treasury tax audits. Your rights include:
- Right to professional and courteous treatment by IRS employees.
- Right to privacy and confidentiality regarding tax matters.
- Right to understand why information is requested, its use, and consequences of non-compliance.
- Right to representation.
- Right to appeal disagreements within the IRS and before the courts.
Successful resolution of an audit requires thorough substantiation of all reviewed items. The audit may conclude with no changes if all items are substantiated. If proposed changes are made, consult your tax attorney, especially if disagreements arise, guiding you through the tax appeal process.
With over 30 years of experience working with the IRS, Attorney Kevin M. Bannon possesses the expertise needed to navigate the audit process successfully. For all your tax-related needs, contact Bannon and Associates, PC today.