Audits and Audit Reconsideration Services in The Chicagoland Area & Nationwide

The IRS can select a tax return to audit for any number of reasons. A certain item on a tax return may draw the scrutiny of the IRS or a tax return may be selected for audit at random. Regardless of the reason, the audit process is one fraught with danger for the unrepresented taxpayer. An audit is a lengthy and in-depth examination of a taxpayer’s tax return. Additional information and detailed explanations are generally required, and additional years may be examined.

How Long Does the IRS have to Audit?

The IRS generally has three years after a tax return is filed to audit that return and to assess additional tax. However, if there is a substantial omission of gross income on the tax return (25% or more), the IRS has six years after the tax return is filed to audit that tax return and to assess additional tax. Finally, the IRS can assess tax at any time if no tax return is filed, or if there is fraud or an attempt to evade the tax on the return that was filed.

What to do When You Receive an Audit Notice?

If you have been notified by the IRS that you are going to be audited, and if there are any questionable items on your tax returns, it is strongly advisable that you seek the advice of counsel before you speak with the IRS. Contacting the IRS without the advice of counsel may make things substantially worse. At the conclusion of the audit, the IRS may propose additional tax, penalties and interest. However, the taxpayer may still have an opportunity to contest the audit deficiency at IRS Appeals or in the United States Tax Court.

What to do if you do not attend the audit?

If the taxpayer did not attend the audit or was poorly represented at the audit, IRS Trouble Solvers™ will contact the IRS and attempt to establish a basis for an audit reconsideration. If the IRS grants an audit reconsideration, the taxpayer will be given the opportunity to present the necessary documentation to substantiate the items contained on his or her tax return. If successful, the IRS will abate all or part of the prior audit deficiency, including penalties and interest.

Share by: