Being audited by the IRS is something that people want to avoid at all costs. Although the IRS generally audits a very small proportion of taxpayers, you still need to be ready in case you get audited. The best way to stay ready is to have an authorized tax or legal professional who can stand in on your behalf in case you get audited. You need to have a strategy that you can use to defend your position.
In the United States, the IRS and all states allow taxpayers to be represented by attorneys, certified public accountants, and enrolled agents. Dorothy Lawrence is among the most reliable attorneys when it comes to tax audit defenses. Dorothy is the founder of her own law firm, the Dorothy Butler Law Firm. She annually prepares hundreds of tax returns and offers tax audit defense services in 38 different states. Dorothy develops a comprehensive strategy that depends on clients’ position in front of the IRS. Dorothy strongly recommends having a professional audit representative on your side who can handle everything regarding tax audits for you.
How Does Audit Defense Work?
Tax audit defense services usually handle three main types of audits: the mail audit, the office audit, and the field audit. Before you hire an audit defense service, Dorothy wants you to know about the following basic features that tax audit defense usually includes:
- Handling audit notices on your behalf and responding to them
- Defending your federal tax return and/or state tax return in audit hearings or discussions with tax auditors
- Access to and assistance from audit representatives who could be tax experts, such as Enrolled Agents or CPAs
- Assisting you in resolving any tax debt or identity theft connected to the audit
- Paying any fines or costs incurred if you are being audited due to a preparer’s or software error on your return
Types of Tax Audit Defenses
Pre-Paid Audit Representation
The pre-paid option functions similarly to insurance; in the event that your tax return is chosen for an audit, you exchange relatively low audit costs for full audit counsel. You pay the fees for this option without knowing if your tax return will ever be chosen for an audit, which is a drawback. But if your tax return is chosen for an audit, you receive complete audit representation at no additional cost.
Independent Tax Audit Representation
If you haven’t acquired pre-paid audit representation and you get audited, you would need to hire a professional and pay the entire cost of the service. Depending on the service you choose, it may be expensive.
Tax Audit Defense Vs. Tax Audit Support
One important thing you need to know is the difference between tax audit support and tax audit defense. Dorothy believes people often confuse the two terms. In tax audit support, you receive some support from a tax preparation company, but they basically rely on you to notify them on time if you receive an audit letter. You will be doing most of the work yourself. In the case of tax audit defense, however, the tax preparation service will do most of the job for you. They will basically do everything they need to in order to ensure you pay no more than your proper amount of income tax. In most cases, you have to buy an audit defense before filing your return since you can’t acquire it once you find out you’re being audited.
How can The Dorothy Butler Law Firm Help You?
The Dorothy Butler Law Firm provides legal representation for you, your corporation, or for an affiliated organization of your corporation during an IRS investigation or audit. You are entitled to rely upon Dorothy Butler Law Firm’srepresentation in the preparation of any documents required by the IRS related to this matter on a tax return. They will provide you with information to support all audit positions. The Dorothy Butler Law Firm will also assist you in providing the IRS with information and documents relevant to your case, including all relevant financial statements and tax returns.