If you have received a letter from the IRS, notifying you of an impending tax audit, you need to act immediately.
An IRS auditor will be visiting you to inspect your tax returns, accounting books, and business records. The auditor’s aim will be to determine if you have filed your tax returns correctly, properly accounting for all income, deductions, and exemptions applicable under law. They will be looking for any errors or intentional omissions that reduce the taxes you owe. Any problems will be corrected with tax adjustments (usually increases) or financial penalties, where it is found you’ve intentionally defrauded the IRS. In the worst case scenario, an IRS audit can trigger a criminal investigation against you.
Daily & Toups is a specialized tax law firm. We can help you prepare for an upcoming tax audit and represent you in person in front of the IRS.
A tax audit is a serious step by the IRS. Anybody can be selected for an audit and it doesn’t necessarily mean that you’ve done something wrong. However, if the IRS wants to dig into your records you have to prepare for all scenarios.
Five out of seven people who are audited by the IRS owe additional taxes. If the audit finds severe errors in your tax records, you can receive a civil penalty on top of the taxes and interest you owe.
Usually, auditors come clueless and it’s their job to extract as many details from you as possible. Your performance during the audit is crucial. If you’re not properly prepared to handle the interview, you may end up doing more damage than helping your case. The best thing you can do is to start working on your defense as soon as you get wind of a tax audit coming your way.
You need to review your business records and accounting and clean any obvious errors you could find. If you can spot them, so will the auditor.
You must remain collected and keep your composure during the interview. The auditor may fire all kinds of questions about your business and personal life.
The sole purpose of an IRS interview is to catch you doing something wrong. The auditors are trained to interrogate you in such ways that you unintentionally give away information. They will look for clues in your behavior and cross-reference your statements to find out if you’re hiding something.
These things will give the IRS information about you. You may not think they are relevant, but the IRS excels at piecing the bigger picture from the bits you provide them with.
Does it sound intimidating? That’s what the IRS wants. The auditor can be cold, heartless and scary. It’s their job to come in and bully you until you cave in and tell them everything they want to hear.
Depending on the case, the consequences of an IRS tax audit can vary greatly. By default, if you have diligently filed and paid all of your taxes, there is nothing to fear and the auditor will simply confirm everything is in order.
Unfiled tax returns, unaccounted income, improper use of tax deductions and exemptions will result in an adjustment of tax. The IRS is going to calculate owed tax based on all found discrepancies in earned and reported income. There is no limit. Interest will be assigned to all tax from the time it should have been paid until today and will continue running indefinitely.
Finally, depending on the case, a variety of penalties can be added:
If any of the above apply to you, contact a tax attorney immediatelly to verify and discuss the available options!
A tax audit is scary only if you don’t know what you’re doing.
At Daily & Toups, we’ve mounted hundreds of successful defenses against tax audits and IRS reviews.
With more than 50 years of experience dealing with the IRS, we’ve learned the ins and outs of the agency. We have worked with the IRS to develop programs for their agents, as well as Enrolled Agents and certified CPAs.
We provide the training and counsel you need to stand up to the IRS and defend your business during a tax audit.
We can step in and take over your defense and communicate directly with the IRS agents to resolve rising problems quickly and efficiently.
Simply contact us and tell us your story. We’ll take it from there, assess your situation and present you with the options you have.
Our mission is to secure the best outcome for our clients. Where we can’t stop the IRS from imposing a penalty, we work to reduce the charges as much as possible.
Mr. Daily is THE expert in his field. I've had the pleasure to work with him for over 20 years and he has always found the time to counsel and explain the best course of action.
Mr. Daily and his expertise helped me get out of a tax situation that could have forced the dissolution of my business and ruined my credit.
Fred assisted us through a multi year audit with ease and professionalism. His guidance was excellent and it was obvious he knew exactly how to handle the IRS
Thank you. Thank you. You got the tax lien removed and I was able to get my home re-financed.
Two years ago my finances (and life) were a mess. The IRS was on my back with tax levies of my bank accounts. Today, all of that is behind me. I can sleep at night.
The accountant that you warned me against tried to create endless fear as an incentive to hire him. You then helped me through the process of getting back into the tax system and not worry.
Fred, I believe you function as part attorney, part therapist. You really do care about your clients.
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