What Are The Benefits Of Having Legal Representation For An IRS Audit?


Tax audits are one of the most stressful for anyone of wealth. Although the IRS may occasionally conduct audits randomly, most audits focus on those with higher incomes.

Tax Audits Are More Aggressive For The Wealthy

It appears that the House of Representatives Democrats are looking to raise taxes and dramatically increase their auditing of wealth. Texas New Report and Business Insider both online, explain that House Democrats want to increase tax revenue. They plan to increase taxes as well as increasing their efforts to uncover fraud and tax discrepancies through more aggressive auditing.

Although you don’t need to live in constant fear of being audited it is important that you are prepared.

How Legal Representation Can Assist You In A Tax Audit

Preventive action is the best thing you can do. A tax lawyer will review your financial records and help you to reduce the chance of being audited.

It is crucial to immediately contact a lawyer if you have received a letter stating that your audit will be performed. Although it might seem tempting to just talk with your CPA, or another tax expert about the matter, there are important benefits to working with a lawyer.

  • Do not interview. The IRS will send you an initial letter indicating that you must submit to an interview and audit. A skilled lawyer will be able to help you in this matter. My clients have been able to avoid having to complete this interview. This can help you avoid costly misstatements.
  • You must maintain attorney-client privilege Even though you are innocent of any tax fraud or error you should be able to openly discuss your financial affairs. It will be almost impossible for your advocate to help you if you keep things secret from them. However, if you speak openly with your CPA or another tax specialist, this discussion may not be considered confidential in a court case. Anything you say can be used against you in a court case for tax fraud, tax theft or other tax crimes. Your communication with an attorney is confidential, and your lawyer cannot force you to disclose what you say.
  • Get strong legal counsel: It is important to understand the importance of the privilege issue. Your lawyer can help you to outline your financial details and help you to plan your response to the audit. This type of legal counsel is based on detailed, private knowledge about your financial affairs that can help you avoid serious legal problems.
  • Avoid severe penalties. This is what a lawyer does during an audit for a client: They help them avoid legal consequences. Some clients have been charged with criminal offenses in some of the most serious cases. An experienced attorney can help you avoid the potential penalties that may result from a badly handled audit.

Violations of the tax code, or a criminal conviction can result in severe penalties and other negative consequences. An experienced lawyer can assist you in preparing for an audit. They will also guide you through the process to ensure your rights are protected and avoid expensive tax penalties.

This article was written by Alla Tenina. Alla is a top tax attorney in Sherman Oaks, CA in Los Angeles California, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.

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