IRS Tax Audit
  • June 8, 2022
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Being the subject of an IRS audit is one of the worst experiences you can have as a taxpayer. If a taxpayer faces an IRS tax investigation, the Internal Review System (IRS) will examine their financial info and accounts to check for discrepancies and inaccuracies. There is no hard and fast criteria when it comes to selecting taxpayers for an audit. In fact, the entire procedure represents a random selection process, in which the agency’s computer system is employed to flag returns that deviate from the norm. One way to properly defend yourself during an audit and safeguard your interests is to seek the help of an experienced Dallas tax attorney. In this blog, we are going to discuss all you need to know about IRS Audits.

Different types of Tax Audits

There are 3 types of IRS audits:

  • Mail audit: Requires taxpayers to provide relevant documentation through mail to back the claims on their return. During such an audit, submitting appropriate proof is most likely to satisfy the IRS and bring the tax investigation to an end.
  • Office audit: When called for an office audit, the taxpayer needs to visit a designated local IRS office. Depending on the severity of the issue, they may be asked to answer a few questions raised by a field agent and provide additional documentation. During such audits, taxpayers have the right to bring a tax resolution attorney along with them.
  • Field audit: The IRS conducts a field audit at the taxpayer’s residence or place of business. During such an audit, all items on the return may be thoroughly looked at. Covid has decreased the amount of field audits but now that IRS agents are going back to the office, we should see a rise in these cases.

Related Blog Post: Debunking 5 Myths Related to IRS Tax Audits

Documents you must keep handy during an IRS Audit

Here is a list of documents that you may need to show the IRS panel during an IRS tax investigation:

  • Bills
  • Receipts
  • Loan agreements
  • Canceled checks
  • Employment documents
  • Medical and dental records
  • Insurance documents

Your rights during an Audit

Before you attend an IRS audit, you must be aware of your legal rights. Some of the rights you are entitled to during an IRS audit include:

  • Right to quality service
  • Right to be informed
  • Right to pay no more than the correct amount of tax
  • Right to challenge the IRS’s position and be heard
  • Right to appeal an IRS decision in an independent forum
  • Right to finality
  • Right to confidentiality
  • Right to privacy
  • Right to retain representation
  • Right to a fair and just tax system

Related Blog Post: A Look at the Initiation of IRS Tax Investigations

What to expect from IRS Audits?

In most scenarios, the IRS generally audits returns that a taxpayer filed during the last three years. However, in cases where major errors are discovered, the IRS may add more years to the audit inquiry. The overall duration of an audit mainly depends on the severity of the case, cooperation of the subject of IRS tax investigation, and whether or not you agree with the tax agency’s findings. If the IRS determines that your returns are inappropriate, it may impose penalties, in which case, you might have to pursue legal action. It is advisable to hire one of the leading Dallas tax attorneys for the best IRS tax problems resolution.

Final word

If the IRS is satisfied with your return and related documents, you can expect to walk away from the audit without any issues. However, as mentioned earlier, if the agency finds any discrepancies, you may face severe penalties. Filing an appeal against an IRS penalty can be a tricky affair in the absence of formal knowledge of the Tax Code. That is why you should hire an experienced Dallas IRS lawyer. When looking for tax attorneys in Dallas, TX, look no further than the Law Offices of Nick Nemeth. We offer some of the best IRS tax help to the Dallas community. Contact us today for a no-obligation consultation at (972) 426-2553 or fill out our contact form.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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