Tax Audit Representation
If you or your business has been selected for a tax audit, you are probably dealing with stress and confusion—and rightfully so.
We can assist you before the IRS and the NCDOR in relation to your tax audit. Most taxpayers who receive an audit notice may not know why their return was selected for a tax audit. More importantly, you may not know what happens next or what is required to achieve an agreed case to resolve the tax audit.
We have in depth experience with successfully resolving tax audits before the IRS and NCDOR.
What is a Tax Audit?
An income tax audit is an examination of a taxpayer’s tax return undertaken by the IRS and/or the NCDOR in an effort to verify whether the return contains the taxpayer’s correct tax liability. The Internal Revenue Code grants the IRS the power to examine not only your tax return, but any books, papers, records, or other data that may be relevant to determine the correctness of your tax return.
Accordingly, it is extremely important to maintain adequate records to substantiate the accuracy of your return—and it is required by law. If you have not maintained adequate records, and the IRS has instituted a tax audit, there are other options to substantiate the items on your return.
Contact the experienced tax lawyers at Murray Moyer, PLLC to discuss your options.
What to Expect at an IRS Tax Audit
Once your return has been selected for audit, there are three main types of ways in which the audit may be conducted: (i) correspondence audits; (ii) office audits; and (iii) field audits. Correspondence audits are normally conducted by mail and are typically limited to verification of information that can be mailed back to the IRS.
Office audits are usually conducted at the IRS office by a tax auditor. To schedule the office audit, you should receive a notice requesting a meeting with the auditor at the IRS office. The auditor will request certain documentation to substantiate items on your return. On the other hand, field audits are reserved for more complex business and individual returns.
Whether your return is examined by a correspondence audit, office audit, or field audit, Murray Moyer, PLLC has in depth experience resolving tax audits before the IRS and the North Carolina Department of Revenue.
Audit Strategies and Planning Techniques
The best way to resolve a tax audit is to be prepared. Preparation is key for both IRS and NCDOR tax audits. Beginning on the first day of the tax year, you should maintain records of all transactions. The items under audit must be substantiated and explained in a clear and concise manner. It is highly recommended to be cooperative and proactive with the IRS and/or the NCDOR during the audit so that there are no unintentional misunderstandings.