IRS Audits & Examinations
Experienced IRS Audit Lawyer in Washington, D.C.
Receiving a notice from the IRS often indicates that there may be some issues related to owing money to the federal government, errors on your tax return, or a tax audit for you or your business. It can be difficult for people to handle tax law problems alone due to the complexity of federal tax law. Not to mention, dealing with the IRS can be very stressful, especially when you’re already managing personal and professional responsibilities.
When dealing with a tax issue, it’s crucial to adhere to the deadlines and rules. To ensure that you are following all regulations and working towards a resolution, it’s highly recommended that you seek assistance from a qualified IRS audit lawyer in Washington DC if you find yourself in this situation. Contact Tax Relief Counsel today for a free virtual consultation with our tax attorney today.
Common Tax Audit Issues
If you have tax audit issues related to your business or personal finances, it’s important to understand your options and how best to proceed. This can help protect you from IRS actions and avoid penalties. The IRS commonly deals with various tax issues, some of which are listed below:
- IRS notices of intent to lien or levy
- Innocent or injured spouse relief
- IRS installment agreements for past-due taxes
- IRS audits of individuals and businesses
- Unfiled tax returns
- Tax settlements and offers in compromise
- Payroll taxes and trust fund recovery penalty
Dealing with the IRS as an individual or business owner can lead to various tax troubles. To handle these issues successfully, it is essential to hire a tax audit lawyer in Washington DC due to the complexity of federal tax law.
Potential Outcomes & Penalties of IRS Audits
If you are being audited by the IRS, the potential outcomes depend on your particular situation. At Tax Relief Counsel, we can help determine how much you may owe and what defense strategy would be best in your particular circumstance. Some possible outcomes of an IRS tax audit include:
- No Additional Federal Tax Liability – If you have fully reported and paid what you owe, our experienced tax lawyer can work with the IRS to terminate your audit without additional liability.
- Settlement or Installment Agreement – If you have unintentionally underpaid your federal tax liability, it’s a possibility to negotiate a settlement or installment agreement with the IRS with the help of our IRS audit attorney in Washington DC.
- Offer in Compromise – As long as you are eligible, negotiating an offer in compromise can decrease what you owe tremendously if you have an outstanding federal tax liability.
- Civil Liability for Tax, Interest, and Penalties Determined by the IRS – If the IRS is unwilling to negotiate a settlement agreement or offer in compromise, then you will be asked to pay what you owe, and at this stage, your tax audit lawyer can challenge the outcome of your audit on appeal.
- Civil or Criminal Investigation for Tax Evasion or Tax Fraud – If the IRS decides that there is considerable evidence of tax fraud, then it may choose to initiate a civil or criminal investigation against you.
Not complying with IRS laws and regulations can result in severe penalties that can be financially damaging for individuals and businesses. The IRS has the authority to deduct payments for tax debts directly from individuals’ paychecks through wage levies. Interest and penalties will continue to accumulate until the tax debt is paid in most cases.
The IRS has the authority to seize funds from both personal and business bank accounts to collect unpaid taxes as per 26 U.S.C. § 6331. Failure to pay federal taxes can also result in criminal tax fraud charges. Given the seriousness of these consequences, it is imperative to seek the counsel of our Maryland IRS audit lawyer.
IRS Audit Resolution Strategies
It is common for individuals and businesses to feel helpless when faced with potential IRS penalties and aggressive collection methods, and they may forget that there are various IRS tax resolution strategies available. An Offer in Compromise is one such strategy that can be useful for individuals or businesses who are unable to pay their federal and state taxes.
An Offer in Compromise is a legal way for taxpayers to pay a reduced amount of their total debt to the government. This benefits both the taxpayer by easing their tax burden and the government by still collecting some of the owed amounts. To qualify for an Offer in Compromise, the taxpayer must either legitimately dispute their tax liability, doubt their ability to fully pay the debt, or if accepting it would help with effective tax administration. The legal reference for this is 26 U.S.C. § 7122.
Taxpayers who can’t pay their full tax liabilities on time can utilize installment plans to settle their dues with the federal government. According to 26 U.S.C. § 6159, the IRS allows taxpayers to enter into these payment plans. Depending on the plan chosen, interest and penalties may be limited if paid back in a shorter time frame. Alternatively, payment can be spread out over a longer period of time, but with the addition of interest, penalties, and other fees on top of the original tax amount owed.
IRS Criminal Investigation’s Four “Strategic Priorities”
During tax audits, IRS agents look through taxpayers’ records for any issues that could lead to a criminal investigation and legal action. This includes issues falling under IRS CI’s four “strategic priorities”.
- Legal Source Tax Crimes – These crimes involve the underpayment of tax owed on income derived from legitimate sources.
- Illegal Source Financial Crimes – These crimes involve prohibited income-producing activities, such as racketeering and related offenses.
- Narcotics-Related Tax and Financial Crimes – In addition to other illegal source crimes, the IRS specifically targets offenses involving the sale and distribution of narcotics.
- Counterterrorism Financial Crimes – Individuals and organizations suspected of engaging in illicit financial practices related to counterterrorism efforts can face severe consequences.
Frequently Asked Questions
What Do I Do After Receiving a Tax Audit Letter from The IRS?
It is important to promptly seek the advice of a tax audit attorney if you have received a tax audit letter from the IRS. Ignoring the audit will not make it go away. Failing to effectively defend against the audit can result in the IRS seeking to collect back taxes, charging interest, and adding penalties. However, hiring our DC tax resolution lawyer and developing a strategic defense may help reduce or even eliminate your liability.
Do I Need a Tax Lawyer If I’m Being Audited?
Dealing with an IRS audit on your own for your individual tax returns is not recommended due to various reasons. The Internal Revenue Code is extremely complex, and you’re likely not an expert in tax law. Additionally, an audit could cover multiple years of your federal tax returns. It’s best to speak with our experienced IRS audit lawyer in Washington DC who can assess your risk and handle the audit on your behalf.
What If I Can’t Afford to Pay What I Owe The IRS?
To settle your IRS debt if you’re unable to pay, you can either try negotiating a settlement agreement or opt for an offer in compromise. Both options have their specific rules and prerequisites, however, it’s critical to seek guidance from a skilled federal tax audit lawyer to negotiate effectively and achieve the best possible outcome.
Can a Tax Attorney Negotiate With IRS?
If you’re having trouble with the IRS, you can seek help from our IRS audit lawyer in Washington DC. We can assist you with negotiating an offer in compromise, penalty removal, payment plans, or shielding your assets from collection actions. By utilizing their expertise, an attorney can work towards achieving the most favorable outcome for you.
What Is the Statute Of Limitations On Federal Tax Collection?
Some taxpayers may not know that the IRS has a 10-year limit on collecting unpaid taxes, starting from the date of assessment. The IRS is required to cease collection after the 10-year limit, except for some specific cases. This time limit benefits taxpayers each year in Washington DC.
The IRS may become more forceful in trying to collect payments as the Collection Statute Expiration Date (CSED) approaches. Although the CSED is usually a relief for taxpayers, there are situations that can impact it, such as:
- The taxpayer has applied for bankruptcy and the debt issued has an automatic stay
- An Offer in Compromise is rejected
- Innocent Spouse Relief is requested
- The taxpayer has lived outside of the United States for at least six months
- Voluntary extension of the 10-year statute of limitation
- The IRS sues the taxpayer in federal court
If you make payment arrangements with the IRS, they will restart the collection process. For example, if the IRS spends eight months working on the offer, they will have eight more months to collect.
Contact Our IRS Audit Lawyer Today
Handling tax issues with the IRS can be challenging, but there are various tax relief strategies available. To get the best possible outcome, it is advisable to seek the assistance of our skilled and knowledgeable IRS audit lawyer in Washington DC. Remember that certain deadlines and rules must be followed to maximize available tax relief options. Don’t wait, contact Tax Relief Counsel now for a free virtual consultation to learn more about how we can help.