IRS Audit Defense
When you receive an audit notice, it means the IRS has flagged your return for review. It could be a simple letter asking for clarification or a deeper look into your income, deductions, and bank records. Our IRS Audit Defense Lawyers have the experience, legal knowledge, and proven success to represent you confidently. If the IRS has contacted you or you think they might, don’t wait. Get help before it’s too late.
An IRS audit is a formal review of your tax returns and financial information. This process ensures accuracy in reporting and compliance with tax laws. That’s why having a strong audit defense matters. Whether you’re facing a correspondence audit or a full field review, the right professional is what you need. They can help protect your rights, reduce potential penalties, and guide you through every step of the process with confidence.
Why You Need an Audit Defense Lawyer
The purpose of an IRS audit is to verify that you are paying the correct amount of taxes. It’s the IRS’s way of checking for signs of underreported income, overstated deductions, or claimed credits you may not qualify for. If not handled properly, an audit can lead to serious financial consequences.
An audit defense refers to the professional support and representation provided by tax professionals to individuals and businesses facing an IRS or state tax audit. An IRS audit can be a complex process, but with audit defense, you’re not navigating it alone.
A skilled audit lawyer or a tax professional steps in to communicate with the IRS on your behalf, gather and organize necessary documentation, represent you during meetings, and negotiate for a fair resolution.
The primary goal is to minimize or eliminate penalties, avoid overpayment of taxes, and protect you from potential legal consequences.
How Can I Protect Myself From an IRS Audit?
While no one can completely eliminate the possibility of an audit, you can lower it. Here are practical steps you can take to significantly lower your risk.
- File Accurate Tax Returns: Make sure all income is reported and deductions or credits are legitimate. You don’t want to increase your chances of being audited. So, double-check again. If something slips through the cracks, Victory Tax Lawyers can help. We’ll review your case, address any errors, and represent you through the audit process to protect your financial interests.
- Avoid Common Audit Triggers: Be cautious of excessive deductions (especially for home office or charitable donations), mismatched income reporting, large business losses, and round numbers. These factors can attract IRS scrutiny. If you’ve already filed and are concerned about any of these, we can step in to assess your return, correct potential issues, and represent you if the IRS comes knocking.
- Consult a Tax Professional: Working with an audit representative can help you avoid mistakes and ensure your return complies with the latest tax laws. You can take advantage of legitimate tax-saving opportunities and reduce your audit risk.
- Keep Detailed Records: Maintain organized documentation for all income sources, deductions, expenses, and credits. If the IRS questions any part of your return, clear and complete records can serve as solid evidence to support your claims.
Rose’s A.
Parham has helped me on a number of occasions and has been nothing but helpful and professional. He has assisted me with problems I’ve had with the IRS, very scary! He was super informative throughout the process. Would highly recommend him.
Haley Fuller
Everyone I spoke to at this firm was super personable. Anytime I would email my attorney, Parham, I would get a response back almost immediately. When discussing how to go about my case, I didn’t feel like I was being told a bunch of lies to get me to sign on. I appreciate the efficiency and ability to make me feel safe. Thank you for the awesome service. Thanks!!!
Jannie Smail
Taxes are always such a pain. Thanks to Victory Tax Lawyers, it no longer is. They helped me save so much money!
Michael Yadegaran
This firm is top notch. Parham provided a roadmap for my corporate and personal tax questions that I wouldn’t have been able to figure out on my own. He’s helpful, reliable, and supported by a team of brilliant professionals
Kamran Nassiri
NEW LEASE IN LIFE.
Mr Parham Khorsandi at this law firm has saved me %83 on my taxes. With affordable monthly installments to IRS & the state. I know exactly how the individuals that are looking for tax relief feel and i tell you if you want to walk on air again contact Mr.Parham. I thought i would never think this but thank you IRS for helping me out as well.
Samina A.
Im so happy I met the lawyers at victory tax law, after a lot of research hes helped me with my case so much. I had issues with my tax returns and he helped me step by step while explaining everything to me. I would refer anyone I know to Parham and his partner here.
Mike Y.
This firm is top notch. Parham provided a roadmap for my corporate and personal tax questions that I wouldn’t have been able to figure out on my own. He’s helpful, reliable, and supported by a team of brilliant professionals.
Javer X.
Spoke to amir and he was upfront and honest about the process and gave me an option to help me and my situation. Really good guy with a good heart
K M.
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What Triggers an IRS Audit?
The IRS makes use of automated systems to identify red flags in your report. If your returns fall outside of statistical norms or contain inconsistencies, they can be flagged by the IRS. For example, if the income you report doesn’t match what’s reported by your employer or financial institutions, the system might flag it. Claiming unusually large deductions, especially for charitable contributions, home office use, or business expenses, can also raise red flags. This is because it usually leads to an outsized tax refund, which screams red flags!
Some audits are purely random. They are selected by the IRS’s algorithms as part of a routine review. Others are more targeted. They focus on unusual financial patterns. It’s impossible to guarantee you’ll never be audited. Nonetheless, knowing what can trigger one helps you file with confidence and accuracy.
If you are selected for an audit, it's crucial to know your rights. You have the right to be treated with respect. You have the right to understand why the audit is taking place. And so, the IRS is expected to give you clear explanations of the process. If you disagree with the audit findings, you can challenge them and appeal. You also have the right to representation. A tax expert can speak to the IRS on your behalf.
At Victory Tax Lawyers, we typically work with clients who have over $25,000 in tax debt. These cases tend to be more involved and require experienced legal guidance to protect your financial interests during the audit process.
How an Experienced Tax Attorney Can Defend Your IRS Audit
1. Expert Knowledge of Tax Laws
Tax attorneys have in-depth knowledge of tax laws, IRS procedures, and audit processes. This expertise ensures that your case is handled accurately, with all applicable laws and regulations considered, so no detail is overlooked during your audit.
2. Handling Communication with the IRS
A tax professional can serve as a crucial intermediary between you and the IRS, handling all communication on your behalf. This helps eliminate the risk of misunderstandings or unintentional errors in reporting that could lead to penalties or further complications.
3. Reducing Penalties and Interest
If the audit results in additional taxes owed, a tax attorney can negotiate on your behalf to reduce or even eliminate penalties and interest. In some cases, they may also help you set up a payment plan or secure an Offer in Compromise to resolve your debt for less than the full amount.
4. Strategy and Negotiation
A tax professional will develop a strategy to challenge unfair assessments, highlight discrepancies in the audit findings, and negotiate for more favorable outcomes. Their experience allows them to identify weaknesses in the IRS's case and leverage them to your advantage.
5. Appeals and Representation
If necessary, your tax attorney can represent you in appeals, ensuring your rights are protected throughout the process. They’ll address any mistakes made during the audit and work toward a fair resolution on your behalf.
6. Minimizing Audit Stress
Audits can be mentally and emotionally draining. Having a tax professional handle the process reduces stress and allows you to focus on your daily life without worrying about IRS demands. With expert guidance, you can feel confident that the audit is being managed properly.
7. Increase the Chance of Success
Hiring a tax professional significantly increases the chances of a successful outcome. Studies and real-life examples show that taxpayers who enlist professional help during a tax audit are more likely to achieve favorable results, whether through reduced penalties, negotiated settlements, or successful appeals.
Need the Best IRS Audit Attorney to Fight for You?
Facing a tax audit without a defense is overwhelming. You don't have to derail your life or business by handling it alone. You need all the support you can get. We’ve covered what triggers an audit, the risks of handling it alone, how to protect yourself, and how a seasoned tax attorney can guide you toward a successful resolution. The key takeaway? You don’t have to face the IRS alone.
Being proactive is your best defense. Whether you’re currently in tax debt or want to prepare for potential scrutiny, professional guidance can make all the difference in outcomes, stress levels, and financial impact.
At Victory Tax Lawyers, we bring years of focused tax law experience to protect your rights and your peace of mind. Ready to speak with an expert? Schedule your free consultation today and take the first step toward resolution with confidence.
FAQ About IRS Audit Defense
How Much Does Professional Audit Representation Cost?
There are several factors that determine the cost of audit representation. First, the complexity of your case plays a major role. Simple audits, like those focusing on straightforward deductions, typically incur lower fees. On the other hand, audits involving complex issues (such as multiple income streams, business deductions, or possible legal questions) tend to cost more. This is due to the time and expertise required.
The type of audit also matters. Correspondence audits, handled entirely through mail, are generally less expensive due to their limited scope. Office and field audits, on the other hand, often require in-person meetings with IRS officials and deeper investigation into your finances, which results in higher representation costs.
At Victory Tax Lawyers, we typically work with clients who have over $25,000 in tax debt. These cases tend to be more involved and require experienced legal guidance to protect your financial interests during the audit process.
As for pricing, most tax professionals charge hourly rates. CPAs charge $180 hourly. Tax attorneys, due to their specialized knowledge and expertise, tend to charge a bit more. Their rates can range from $200 to $500 per hour. Enrolled agents usually charge between $100 and $400 per hour.
Some tax professionals may offer flat fees. They usually provide transparency about what the representation will cost upfront. They cost between $2000 and $10,000 or higher. It just depends on the case’s intricacy and the amount of work involved.
Another factor to consider is location. Audit defense costs can vary depending on the state you live in. For example, in high-cost states (like California or New York), tax professionals may charge higher rates. There is also a greater demand for their services in those locations. In states with a lower cost of living, (such as Ohio or Georgia), fees may be more affordable. In states like Texas or Florida, the market is competitive. So, you might find moderate pricing that balances quality with reasonable rates.
What is IRS Audit Defense?
IRS audit defense is professional representation during an IRS audit. It involves a tax attorney or expert managing communication with the IRS, gathering documentation, and developing a strategy to protect your rights and minimize potential tax liabilities.
Types of IRS Audits
The IRS conducts several types of audits, each with a different level of scrutiny:
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Correspondence Audit: This is the most common and least invasive. The taxpayer is sent a certified mail that usually involves specific issues like missing income or documentation.
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Office Audit: This requires you to meet with the IRS examiner in the IRS office with the requested documents to clarify certain items on your return.
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Field Audit: This is a more comprehensive review conducted at your home, business, or accountant’s office.
What Happens if You Get Audited and Don’t Have Receipts?
You may not have receipts, but you must have other supporting documentation like bank statements, invoices, or personal logs. With these, you can prove your expenses. Having receipts makes it easy to substantiate your claim, though.
What to Expect During the Audit Process?
You will need to provide detailed records and documentation. The IRS needs these to substantiate your tax return. This means you have to gather and properly arrange these documents. The process may involve meeting with an IRS auditor. You will also be required to answer questions related to your tax filings. It’s important to remain cooperative but also mindful of your rights.
How Likely is it that the IRS will Audit You?
Certain red flags, such as discrepancies in income, excessive deductions, or mismatched information from third parties, can increase your chances of being audited. However, the overall audit rate is relatively low. Fewer than 1% of individual returns are selected for audit each year.
Does the IRS Look At Your Bank Account During an Audit?
Yes, the IRS may look at your bank accounts. If they believe there is unreported income or if it is relevant to the audit, they will try to get some information from your bank accounts. Bank statements are often used to verify income and expenses. This is especially in cases where cash transactions or deposits need to be substantiated.
How Far Back Can the IRS Audit You?
The IRS can audit returns filed within the last three years. However, if they find significant errors or fraud, they may go back further. It could go back for up to six years. So, always keep tax records for at least three years. You never know, an audit could arise.