Has the IRS audited your taxes and adjusted the amount of tax that you owe? You have the right to request a tax appeal. Tax attorney Juda Gabaie and the experienced legal team at Gabaie & Associates, LLC can help you navigate the complex appeals process. Call today to request a free consultation and learn more.
What is an IRS Audit?
The audit is a formal review process in which the IRS analyzes tax returns to confirm that taxpayers are submitting accurate information and calculating their tax liabilities in full. During the audit, the IRS will investigate the tax return, review supporting documentation, and determine if the taxpayer's calculations are correct.
At the conclusion of the audit, the IRS will either determine that the return was filed correctly and that no changes are necessary, or provide the audited taxpayer with a list of requested changes. The taxpayer can agree to make the changes (and either pay more or get a refund) or contest the changes by filing an appeal.
Who Can the IRS Audit?
The IRS has the authority to review tax returns randomly or to choose specific returns that they believe are problematic. You may be more likely to be chosen for an IRS audit if:
- The information you provided does not match the records on file with the IRS,
- You failed or neglected to report some of your income,
- Your reported expenses exceed your income,
- You have a suspiciously high number of charitable contributions, or
- Taxpayers you do business with are also under audit.
When Can the IRS Perform an Audit?
In most cases, the IRS has a limited amount of time in which they can perform an audit. The statute of limitations set by Congress helps to ensure that all perceived issues are addressed promptly and that taxpayers are not subject to audits of returns for which they may no longer have supporting documentation or knowledge.
3 Years: In most cases, the IRS must perform an audit within three years of a return's original due date or when it was filed, whichever is later.
6 Years: If a taxpayer underreports his or her income by at least 25 percent, the IRS will have six years to perform an audit.
No Limit: There is no limit on when the IRS may perform an audit if a tax return was filed with fraudulent intent. The IRS must be able to substantiate and support any allegations of fraud.
Appealing The Results of an IRS Audit
Once the IRS has completed an audit, the agency is required to provide the taxpayer with a letter outlining and explaining any proposed adjustments. If you do not agree with the agency's findings you have the right to appeal the decision. A Request for Appeals Review must be filed within 30 days of the date you received the agency's determination letter.
When you decide to request an appeal you must be able to articulate specific reasons for contesting the results. If you believe that the adjustments requested by the IRS do not accurately reflect your tax liability, you must provide documentation and information to support your argument. Hiring an experienced tax attorney to help you navigate this complex process will increase the chances of a successful outcome.
Contact the tax attorneys at Gabaie & Associates, LLC today to request a free consultation. We will review your tax documents, analyze the adjustments requested by the IRS, and outline a strategy to minimize your tax liability. You have a limited amount of time to act, so do not hesitate to call us today.