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Simply put, if the IRS suspects that your tax return contains an error, your financial records may be subject to examination. However, you are not necessarily under investigation for a tax crime.

Understanding Your Rights During an Audit

If you receive a notice that your tax return will be audited, you have certain legal rights during the examination process. While your financial records are being audited, you have the right to professional and courteous treatment by all IRS employees. You also have the right to privacy and confidentiality; the IRS cannot share information regarding your audit with others.

When the IRS asks you to relinquish information regarding your tax return or your financial records, you have the right to know why they need the information and the consequence if you decide not to comply. Additionally, you have the right to hire professional legal representation.

With a high-quality attorney on your side, you can have peace of mind that your case is in dedicated and reliable hands. If you have been audited and believe that the IRS has infringed upon you legal rights, talk to a skilled Las Vegas criminal defense lawyer at Okabe & Haushalter.

Why were my records chosen for examination?

The IRS may choose to audit your financial records for a variety of reasons. For instance, if the IRS decides that information on your tax return is outside of the norm, it may decide to audit your return. Just because you’ve been audited doesn’t mean that the RIS necessarily suspects that you’ve committed a tax crime; the audit process is a safeguard used to guarantee that your return is correct. Your return may also be selected for audit through random computer screening.

In other words, if a computer determines that statistically speaking your tax return is more likely to contain an error, you will be audited. The IRS may decide to audit your return using document matching. For example, if your tax return and your W-2 indicate different incomes, the IRS may decide to investigate. You may also be audited because of your association with someone else. For example, if your business partner’s records are being examined, yours may be examined too.

What To Do After the Audit

Audit length depends heavily on the type of examination. Thus, it may be difficult for the IRS to know how long the examination will take. Additionally, the length of your examination may vary depending on your availability and the availability of the information requested by the IRS. Once the IRS has examined all of the relevant documents and information related to your tax return, it will make a determination regarding your case. There are three possible outcomes:

  • The IRS finds no error in your return
  • The IRS finds an error, suggests changes and you comply
  • The IRS finds and error, suggests changes and you disagree

If you agree with the changes suggested by the IRS, you will be asked to sign an examination report indicating your compliance. If not, you have the right to appeal the IRS determination. This may be done in a variety of ways. First, you may file a petition in Tax Court. If you want to avoid court, you may pursue dispute mediation or another alternative dispute resolution.

We at Okabe & Haushalter Can Help

At Okabe & Haushalter, we understand that the tax audit process may be confusingeven intimidating. Make sure that your rights are upheld and respected during the audit process by hiring a top-notch defense attorney from our firm. With a high-quality lawyer fighting for you, you can have peace of mind that your case is in reliable and experienced hands.