There are two kinds of audits that individuals and businesses sometimes must confront:
- Office audits, in which a few categories of expenses are selected from your tax return, and you are asked to bring in checks and receipts to prove that deductions were based on actual expenses.
- Field audit, which usually involves a detailed examination of a tax return, where you have to substantiate every item.
The statute of limitations for an audit is generally three years. Typically the audit will be for the earliest two years of this period. If the IRS finds significant deficiencies in the earlier returns, they usually expand the audit to include the most recent year.
How Can a Tax Lawyer Help With Audits?
While audits can consist solely of providing checks and receipts, it is surprising how often issues of tax law are involved, even in office audits. If you have a complex return, a return showing a very high income, or a return for which very few checks and receipts are available, you may need to hire tax attorney to handle the audit. This is especially true when the return has been filed late, or the IRS has filed one for you.
Any notification that there will be an IRS audit is a good reason to consider hiring an attorney who has a deep knowledge of tax law. An experienced tax attorney can handle record and accounting issues, protect your rights, and work toward the most favorable outcome for your audit.
Contact Us Today
John McDuff, has years of experience practicing tax law. In addition, his background as a CPA further enhances his ability to handle your audit. The Law Office of John McDuff, P.C. handles audits for individuals, corporations, LLCs, partnerships and all kinds of businesses. We primarily serve clients in Austin, Travis County, and other parts of Central Texas. Contact us at 512.457.1177 or online to discuss your case.