Receiving a letter from the Internal Revenue Service (IRS) stating that an audit is imminent can be a frightening experience. Many taxpayers initially panic. Then, instead of taking every reasonable action they can to protect themselves, they may rush through the process of responding and put themselves in a more perilous position.
Technically, every person facing an audit has the right to retain legal representation while interacting with the IRS. Doing so is generally advisable, as small mistakes can have major implications for those accused of violating tax law. The following are some of the most compelling reasons to secure the support of a lawyer when facing an audit.
The complexity of the tax code
Contrary to urban legends, the federal tax code is not 70,000 pages. However, it is roughly 2,600 pages of dense legal language that changes frequently. The average person simply cannot familiarize themselves with the entirety of the federal tax code. Even if they attempt to read it, they may not be able to understand it. An attorney familiar with the federal tax code can help clarify a difficult situation for their clients.
The emotions that come with an audit
As previously mentioned, many people feel an intense sense of dread or panic when facing an upcoming audit. Those emotions can undermine rational thinking. They can also compromise an individual’s behavior during communications with the IRS. An attorney is capable of remaining calm and professional in difficult situations. They can advocate for their clients when their clients may not be able to remain calm and assert themselves effectively.
An understanding of the options
There are multiple different types of audits. There are also multiple different solutions for underpaid taxes and other tax controversies. From offers in compromise to strategic defenses that show that no underpayment occurred, there are many different solutions that can help those facing an audit. A lawyer can educate their clients about what to expect during an audit and about the different solutions they could potentially utilize to resolve the tax controversy that they face.
Taxpayers who secure the right support may ultimately be able to recover from an income tax issue more quickly than those who try to handle an audit on their own. Those facing any kind of tax controversy have the right to legal representation during their audits and any other interactions they have with the IRS.
