The Peck Group LC
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We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

What to know about IRS audits

On Behalf of | Aug 20, 2020 | Audits |

Tax audits might happen in Georgia due to suspicions of tax fraud, such as for deductions, or errors. In these situations, the IRS may contact the taxpayer to get an explanation. If the IRS is still suspicious, it will send out an audit notice. There are several types of audits and ways to handle them.

Types of audits

A common type of audit is a correspondence audit, which relates to mathematical errors or fraudulent entries on tax forms. Tax payers should have necessary documents to prove their explanation.

A field audit involves an IRS examiner visiting an office or home office to verify data. For example, if a business claims a deduction on supplies that doesn’t correspond with profits, the examiner may come to validate the business uses that amount of supplies.

An office audit means that the taxpayer must visit the examiner’s office in person. The tax attorney or tax preparer will need the documents to validate the claims.

Responding to an audit

In 30 days, the tax payer should get a letter from the IRS detailing results and a leaflet about their right to appeal. If the taxpayer agrees with the IRS’s decision, they sign and return the document. Otherwise, the taxpayer has 30 days to appeal, which could take a year.

The taxpayer has 90 days to appeal to the tax court if they disagree with anything the appeals officer finds. Most disagreements and issues get settled out of court.

Reducing the risk of audits

Taxpayers are advised to keep tax returns from at least three years back, which is the statute of limitations on audits. Fraud cases do not have a statute of limitation. Individuals should also keep organized receipts and be prepared with an explanation. Filing a neat return, filing on time and checking returns helps reduce the chance of audits.

Anyone can be audited when the IRS has suspicions. Tax payers have the option of hiring a tax audits attorney if they feel the audit is unjustified.

We insist that your taxpayer rights are protected and your options are known.

Our services are confidential and are protected under the attorney-client privilege as allowed by law.