A Lowell Tax Audit Lawyer Discusses Tax Audits
IRS tax audits are triggered for several different reasons, from randomness to general profiling to specific suspicion. For any reason an individual or business finds itself in the crosshairs of the IRS or the Massachusetts Department of Revenue (DOR), the taxpayer’s best interests are protected through legal representation by a Lowell tax audit lawyer.
Types of Audits
The type of audit the IRS chooses depends primarily on the extent of the information it is seeking. A Lowell tax audit attorney indicates the most common audits include:
• Audit by correspondence, in which case the taxpayer is asked to provide supporting documentation to verify information submitted on a return. Additionally, as a Lowell tax audit lawyer cautions, this type of letter audit may also include a request for a specific dollar amount the IRS believes is owed.
• Office audit, in which the taxpayer is requested to make an appointment with a local IRS office and bring supporting documentation to that appointment
• Field audit, in which the IRS agent or agents come to the taxpayer’s home or place of business
Production of the Requested Documents
Any document or evidence that was used or is necessary to support the information submitted on a tax return is fair game for an audit. If the records cannot be found or the taxpayer refuses to produce them, the tax agency will calculate the tax due as if those records do not exist. From experience, your Lowell tax audit lawyer understands this will result in a higher tax liability.
Explanation of the Requested Documents
Production of the documents may not be sufficient. Complex returns will likely require an explanation of how the supporting documents in fact verify the information on the return. A Lowell tax audit attorney suggests that few taxpayers are prepared for that task.
An Appeal of an Audit
The taxpayer does have a legal right to file an appeal, first with the IRS itself, and ultimately, as your Lowell tax audit lawyer is best able to explain, through the US Tax Court or Federal District Court.
Seek the Legal Counsel of a Lowell Tax Audit Attorney
It is a mistake to go up against the IRS or DOR alone. Contact Bruce A. Gage, a Lowell tax audit lawyer. Our office is conveniently located at 491 Dutton St. Suite 211 (Business Center, 3rd Floor) Lowell, MA 01854.