There are many ways to go about with your tax-related affairs, but the most reliable option is to get the services of IRS audit defense lawyers. They are knowledgeable in IRS laws, and can assist you in defending yourself against the agency’s allegations. When faced with such charges, taxpayers have very few options. The one on whom they have no hope of securing compensation is the IRS itself. However, these same taxpayers have rights, which can be used as a leverage in the fight against the agency. Attorneys are highly aware of utilizing such rights and this fact alone makes them a better option than an ordinary accountant. For details about tax attorney, check out www.coloradotaxattorneys.net/irs-audit-defense-colorado-springs-co/.
Accountants are not that familiar with citizens rights when it comes to taxes. In contrast, IRS auditors are that knowledgeable about the way in which the tax laws are applied. The two are so much different that people often think of them as the same thing. They handle different types of taxes and they even have different accounts in which the same taxes are paid over again. This means that if a taxpayer wants to maximize his/her rights, going through an ordinary accountant will simply not cut it.
The IRS has special rules when dealing with taxpayers regarding its right to audit their financial records. It has to determine whether the person in question is actually guilty of hiding assets or not. If the tax return was created under penalties or any other form of tax fraud, the auditor has every right to audit the return. In other words, the taxpayer is being charged with criminal tax evasion if the audit finds out that he/she tried to evade taxes by concealing information. The best defense against an audit is to hire an IRS audit defense attorney.
The IRS also has the right to verify the accuracy of tax returns that have been submitted by taxpayers. It is doing this for a couple of reasons. One, the IRS might consider an inaccurate return as a clerical error. Two, the accuracy of the returns serves as proof that the individuals who filed them took all the necessary steps to make sure that they would not be audited. These include filling out the entire form correctly and paying all the necessary taxes.
There are a lot of things that can cause an audit. Even when the audit itself does not find anything wrong with a taxpayer’s submissions, the audits of back taxes are triggered when the agency receives notification from the Internal Revenue Service that a refund claim for the year has been filed. When taxpayers do not pay attention to these notifications, the audits of their finances will begin. In addition to the interest and penalty imposed on the delinquent amounts, the additional penalty for failing to pay the interest and penalties at the appropriate time will mean additional fines that will further complicate the situation.
When taxpayers find that they have been audited, they must pay all the required back taxes within the required time period. However, it is not enough that taxpayers just pay. They must ensure that they submit all the relevant documentation needed by the auditor. This includes bank statements, detailed copies of other financial transactions, and so on. If the auditor discovers that some of these documents are missing, the audit can be delayed until all the relevant records have been gathered.