IRS Tax Audit Representation
Selection of a tax return for an IRS audit does not necessarily mean there is something wrong. Sometimes tax returns are selected for an IRS audit on the basis of a statistical formula developed by the IRS. The IRS compares your tax return against “norms” for similar tax returns. The “norms” are developed from prior IRS audits of a statistically valid random sample of returns, as part of the National Research Program the IRS conducts.
Other times, the IRS may select your return for an IRS audit because of your connection with other taxpayers who have been subjected to an IRS audit. These taxpayers include your fellow stockholders of your corporation, partners of your partnership, your vendors or customers, etc.
Generally, amending your tax return does not trigger and an IRS audit of your original return. It is possible that your amended return may be screened and selected for an IRS audit. Therefore, have a reasonable basis for amending your tax return, provide reason for the amendment, and enclose applicable supporting documents, to avoid an IRS audit.
Once your return is selected for an IRS audit, you are initially contacted only by mail. The IRS audit letter will request particular documents the IRS auditor wants to examine, and you will be given the auditor’s contact information for a timely response. You will have an opportunity to decide who will represent you before the IRS.
Depending on complexity of the issues involved, you may represent yourself before the IRS. You may retain an experienced tax attorney, a CPA, or another professional knowledgeable in tax law and accounting principles, to represent you. Tax law and accounting profession go hand in hand, and complement one another and are needed for a complement IRS audit representation.
If there is a possibility that the IRS audit of your documents may expose you to a criminal investigation, consult a tax attorney and do not use services of a non-attorney tax professional to represent you. The reason for this advice is that if your case turns into a criminal case down the road, all prior communications between you and your non-lawyer representative may be subpoenaed and used against you in court. A non-lawyer representative could be called to testify against you. However, the attorney-client privilege of a lawyer keeps communications between you and the attorney a secret, and may not be subpoenaed.
If you were unable to find a tax attorney to handle your IRS audit, retain an attorney who may hire a CPA for you to be used as “Kovel” CPA. Under this agreement, your attorney’s privilege extends to the CPA and keeps the communications between you and the CPA privileged.
Note. Telephone appointments (for civil cases only) are available for clients who cannot meet in person. Call (310) 719-1040 and (714) 546-4272.
We Can Help With Your IRS Audit
Zaher Fallahi, Tax Attorney, CPA, has extensive experience both with a major government agency and large professional firms, dealing with tax laws and accounting principles. We have hands on experience and have assisted taxpayers in the flowing tax related areas:
1- IRS income tax audit;
2- IRS payroll tax audit;
3- Resolving IRS debt;
4- Innocent spouse relief
5- IRS independent contractor v. employee audit;
6- IRS tax debt relief;
7- IRS offer-in-compromise;
8- IRS appeals;
9- U.S. tax court;
10- IRS Foreign Bank Account Report (FBAR);
11- IRS Foreign Account Tax Compliance Act (FATCA);
12- IRS Offshore Voluntary Disclosure Program (OVDP);
13- IRS Streamlined Filing Compliance Procedures.
14- Franchise Tax Board (FTB), income tax audit;
15-Board of Equalization (BOE) sales tax audit;
16- FTB offer-in-compromise; and,
17- Employment Development Department (EDD) payroll tax audit.
Zaher Fallahi, tax attorney, has been rated 10 out of 10 by Avvo: Rated 10 of 10 .
Zaher Fallahi, tax attorney, has been named a top tax attorney: TOP Tax Attorney
About 1.8% of the U.S. lawyers are also CPAs, and we are proudly one of them;
We have successfully defended clients before the IRS, FTB, BOE and EDD since 1992.
We can help you. Please contact us at:
(310) 719-1040 (Los Angeles)
(714) 546-4272 (Orange County)
E-mail [email protected]