Trusted IRS Audit Attorney

The IRS issues various notices and letters to notify taxpayers of impending audits and other tax-related matters. Here are some common documents worth knowing:

• CP2000 Notice: Sent when the IRS identifies discrepancies between the income reported on your tax return and the information reported by third parties, such as employers or financial institutions.
• Letter 2205, 2205-A, or 2205-B: Intended to inform you that your tax return has been selected for examination, providing details about the issues under review and the documentation required.
• Letter 3572: Used when the IRS proposes changes to your tax return, but you have the opportunity to agree or disagree with the proposed adjustments.
• Letter 525: Sent when the IRS has completed an audit and the findings indicate that you owe additional taxes; it explains the audit results and your appeal rights.
• Letter 3219 or 692-H: These letters are audit appointment notices, informing you that you need to meet with an IRS auditor to discuss your tax return.

A qualified tax audit attorney can help interpret the notice you receive and plan a suitable course of action.

If you’ve received a tax audit letter from the IRS, seek the aid of a tax attorney right away.

Ignoring the audit won’t make it go away, and failing to effectively defend against it can result in the IRS seeking to collect back taxes, charging interest, and adding penalties. However, retaining the services of our D.C. tax resolution lawyer and developing a strategic defense may help reduce or even eliminate your liability.

Attempting to handle an IRS audit on your own isn’t recommended. For one thing, the Internal Revenue Code is extremely complex, and you likely aren’t an expert in tax law. Moreover, an audit could cover multiple years of your federal tax returns, making preparing a response difficult. Auditors may also uncover issues indicative of possible tax evasion over the course of their audit, which would subsequently trigger a criminal investigation — making it all the more vital to have a lawyer from the onset of the audit.

It’s also strongly recommended that you do not substitute a qualified tax attorney for your certified public accountant (CPA). After all, the CPA who prepared the return that’s being audited would have a conflict of interest and may not be willing to admit any mistakes to the IRS. 

Furthermore, if you wish to dispute the outcome of the audit in the United States Tax Court, you would only be able to do so with an attorney. But most importantly, working with an attorney would ensure you have the benefit of attorney-client privilege and have your communications protected from the government. A CPA does not provide this privilege and may in fact be compelled by the government to disclose their communications with you.

Instead of going it alone, get help from Tax Relief Counsel. Veteran tax attorney Ramy Shabana can assess your risk and take the required actions on your behalf.

To settle your IRS debt, you can either try negotiating a settlement agreement or opt for an offer in compromise. Both options come with specific rules and prerequisites. As such, it will be necessary to seek guidance from a skilled federal tax audit lawyer to negotiate effectively and achieve the best possible outcome.

• Correspondence Audits: These are conducted via mail and typically involve minor issues like missing forms or clarification requests.
• Office Audits: Auditors instruct you to visit an IRS office to discuss specific aspects of your tax return.
• Field Audits: IRS agents conduct these in-person audits at your home, business, or accountant’s office, focusing on more complex tax matters.

• Limited Scope Audits: These audits don’t encompass your entire return but instead focus on specific items, such as deductions or credits.
• Comprehensive Audits: A comprehensive audit is a full-scale examination covering all aspects of your tax return.

• Taxpayer Compliance Measurement Program (TCMP) Audit: For the purposes of research and recovering lost revenue, the IRS periodically performs audits under the TCMP, which involve a full examination of an entity’s financial records and activities.
• Random Audits: If you’re randomly selected for an audit, IRS agents will conduct a thorough review of all aspects of your personal or business tax return.

There are several key differences between state (D.C. Office of Tax and Revenue, or OTR) and federal (IRS) tax audits:

• Taxing Authority: The IRS conducts federal tax audits, while the D.C. OTR focuses on audits for district taxes.
• Tax Laws: Federal tax audits primarily focus on compliance with nationwide tax laws, while district tax audits in D.C. concern compliance with the District of Columbia’s tax code.
• Audited Returns: The IRS audits federal income tax returns, including those filed by D.C. residents and businesses; the D.C. OTR audits individual and business tax returns in the District of Columbia only.
• Auditors: Different agencies and auditors are responsible for federal and D.C. state tax audits.
• Appeals Process: There are also separate processes for appealing federal and D.C. state tax audit findings.

It’s important to understand the distinctions between federal and state-level audits to ensure that you respond to your impending audit appropriately.

An IRS audit is a formal investigation initiated by the IRS to thoroughly review a taxpayer’s financial records and returns, often prompted by specific concerns or questions regarding compliance with federal tax laws.

By contrast, an examination is a more general term not limited to the IRS but also potentially involving other tax authorities that can encompass various reviews or checks of a taxpayer’s financial information. While audits are official and typically in-depth, examinations can vary in scope and formality.