Few things evoke as much dread to Americans as the knowledge that they have an upcoming tax audit from the IRS. Most taxpayers would, in all honesty, rather go through another unpleasant process or challenge rather than face the taxman. A lot of factors can be attributed to the fear of IRS audits and they range from the strict laws on taxation to the heavy penalties for noncompliance. Generally, the uncertainty of what will happen during and after the audit is often more than enough to cause sleepless nights to anyone. It becomes worse, considering that only a small percentage of the population is chosen at any time for the audits. As such, those facing IRS tax reviews tend to become overwhelmed with lots of worries about why the IRS settled on them.
While you can never be too careful when it comes to matters of taxation, panicking or worrying about an audit never resolves the matter. At a time when, on average, the IRS is conducting fewer audits each year, there is the unavoidable necessity to take the right course of action right from the start. This typically involves ensuring that you do not leave yourself exposed to further scrutiny or be at the risk of facing civil and criminal consequences. Since you are probably going through a tax audit for the first time, it takes a seasoned professional in this field to guide you through the right path. Generally, the most popular options for individuals or businesses preparing to face the IRS are certified public accountant (CPAs) and tax attorneys. Even though members of these professionals are typically expected to be well-versed with tax-related issues, it is vital to choose the right professional.
As the name suggests, certified public accountants are well-versed in the core concepts of accounting and financial management. The specialized training that these professionals have undergone makes them the right professionals for handling business accounting and tax returns preparations. As such, if you need your business or personal financial records to be in order, this is, without a doubt, the professional to call. Drawing from their expertise on financial implications, a CPA assists in avoiding mistakes that might raise the IRS red flags and lead to an audit or taxation penalties. It is therefore highly recommended to seek these professionals if you have a complicated tax situation and need an expert to handle the numbers.
If you are being audited or investigated by the IRS; an IRS audit lawyer is the professional to contact as they are specialists in tax laws and the audit process. Since audits do not just focus on numbers but are tied to lots of legal aspects, a tax attorney provides a solid ground for facing auditors. Overly, these legal professionals with a deep understanding of the United States tax system and will offer lots of benefits including;
- Be a partner that will be by your side from the start to the end. A tax attorney will handle a wide range of issues, from responding to an audit and representing the taxpayer in a civil or criminal claim to initiating lawsuits against the IRS. These far-reaching abilities ensure you never have to worry about the direction the audit will take.
- Enjoys special attorney-client confidentiality and privilege. Unlike a CPA accountant, a tax attorney has special privileges that make them the professional to be trusted with vital information. The attorney-client privilege cannot be broken by the IRS auditors, while an accountant can easily be arm-twisted to be a state witness.
- Seasoned tax attorneys also double up as CPA experts. Besides having a law degree that saw them specialize in tax law, leading tax attorneys also have CPA qualifications. This gives you double benefits as not only can these professionals navigate complex legal issues, but they also have excellent accounting knowledge. As a taxpayer who needs to make a smart choice in preparation for an upcoming tax audit, a tax attorney with CPA gives you a master package. The audit lawyer will not only get you prepared for the IRS review but step up to negotiate and use their legal knowledge to mitigate any risks.