Received an IRS Audit Notice? Don't Make These Common Mistakes

If you have received an audit notice from the Internal Revenue Service (IRS), you need to be careful. Regardless of whether you are behind on your federal tax obligations (or your business is behind on its federal tax obligations), you will need to play a proactive role in the audit process—and you will need to be careful to avoid mistakes that could lead to unnecessary consequences. Learn more from the Virginia tax audit lawyers at Thorn Law Group.

5 Common Mistakes to Avoid After Receiving an IRS Audit Notice

What do you need to avoid doing if you have received an IRS audit notice? Here are five mistakes we see taxpayers and business owners make far too often:

1. Ignoring the Audit

First and foremost, you cannot simply ignore the audit. It isn’t going to go away, and if you do nothing, you could find yourself (or your business) facing significant additional liability. To avoid unnecessary consequences, you need to make informed decisions, communicate with revenue agents effectively, and take proactive steps to steer the audit toward a favorable resolution.

2. Opening Your Books to the IRS

Steering the audit toward a favorable resolution does not mean opening your books to the IRS. While this “open book” approach might seem like the best option—especially if you don’t think you have anything to be concerned about—it can prove very costly. When facing a tax audit, you need to make informed and strategic decisions about the information you provide to revenue agents.

3. Concealing Information or Providing False Information to the IRS

Making informed and strategic decisions does not mean concealing information from the IRS. While you may be entitled to withhold information based on the attorney-client privilege or for other reasons, improperly concealing information can increase the risks you are facing. The same is true of providing false information to the IRS. If you knowingly attempt to mislead revenue agents, this could lead to federal criminal allegations regardless of your (or your business’s) tax compliance status.

4. Failing to Document the Audit Process

If your (or your business’s) IRS audit leads to an unfavorable result, you may need to file an appeal. To file an appeal, you will need proof that the outcome of the audit was flawed in some way. This will require documentation from the audit process.

5. Accepting an Unjustified Outcome

Along with making informed and strategic decisions during the audit process, you also need to make informed and strategic decisions once the audit is over. This includes deciding whether to accept the outcome of the audit or file an appeal. You should not accept an unjustified outcome. The appeals process exists for a reason, and if you need to use it, filing an appeal will be the best choice in the long run.

Contact the Virginia Tax Audit Lawyers at Thorn Law Group for More Information

Are you facing an IRS audit in Virginia? If so, we encourage you to contact us promptly for more information. To speak with one of our experienced Virginia tax audit lawyers in confidence, please call 703-752-3752 or request a confidential consultation online today.