If you have been chosen for a federal tax audit by the Internal Revenue Service, it is vital that you discuss your situation with an experienced attorney-CPA as soon as possible. An IRS tax audit, at best, can result in the assessment of additional tax, penalties and interest — and in some cases, criminal tax charges related to tax evasion. At the Tax Law Office of David W. Klasing, we possess more than 25 years of experience, including over a decade of auditing experience, representing business entities and individuals in all types of tax audits. Serving taxpayers throughout the region, our Sacramento federal tax audit lawyers & CPAs are here to make your examination simpler and less stressful while protecting your rights, where necessary, challenging the IRS’ allegations against you, and helping you comply with the tax code successfully.
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For How Long Can the IRS Audit Me?
Generally speaking, the IRS may perform a federal tax audit for a period of up to three years. This three-year time limit is rooted in the statute of limitations, which — critically — can shift under specific circumstances. For instance, the three-year statute of limitations extends to six years, doubling in length, in situations where the IRS has cause to believe that the taxpayer has made a substantial or material understatement of income or has made other substantive errors indicative of possible tax fraud in which case there is no statute of limitations.
In cases where the taxpayer has failed to file a return, there is effectively no time limit, though according to the IRS, “We usually don’t go back more than the last six years.” While unlikely, it is not impossible that the IRS could select you for an audit seven years later, eight years later, or even longer following a failure to file. Therefore, it is critical to consult with a tax audit attorney right away if you have been chosen for, or believe that you are at risk for, a federal income tax audit or other type of IRS audit.
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What Are Some Reasons the IRS Might Choose Me for a Tax Audit?
There are numerous reasons a taxpayer may be selected for an income tax audit or other type of tax audit by the IRS. In general, the IRS initiates an audit when there appears to be a mistake or problem with the taxpayer’s returns or related documentation. Though some audits are initiated by random selection and are not necessarily cause for concern, it is crucial to take your IRS audit notice seriously and respond in a timely fashion, ideally after consulting an attorney who has extensive auditing experience, like those at the Tax Law Office of David W. Klasing. Common reasons for auditing include unfiled returns, improperly claimed tax credits, returns that were filed late (delinquent returns), and mismatches between the income reported and the taxpayer’s assets which cannot be readily explained.
What if I Disagree with the Outcome of My Federal Tax Audit?
You may appeal the outcome of a tax audit which you feel to be inaccurate. However, you must have extensive factual evidence to support your claim, which moreover, must be prepared and submitted following strict IRS rules. Our office provides IRS audit and appeals representation for C corporations, S corporations, LLCs, partnerships, nonprofit organizations, estates, trusts and individuals who have been improperly or unfairly penalized due to auditing errors.
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Basics of Federal Tax Litigation
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What Should I Do if I Have Been Chosen for an IRS Audit?
If you have been selected for an audit by the IRS, you need to seek immediate assistance — even if you do not think that you have done anything wrong. However, it is just as important to seek out the right type of assistance. For example, what type of tax professional should you choose to assist you? An attorney, or a CPA?
Your communications with an attorney are protected by the attorney-client privilege, whereas your original tax preparer may be compelled to provide evidence against you. While an attorney has legal expertise and moreover, affords the attorney-client privilege, a CPA has extensive experience with IRS protocols and the inner workings of the Internal Revenue Code. An attorney-CPA, like David W. Klasing, combines the benefits of both. It is in your best interests not to return to your original tax preparer, and instead confer with a Sacramento tax attorney-CPA as soon as possible.
Sacramento IRS Federal Tax Audit Lawyer + CPA for Businesses and Individuals
At the Tax Law Office of David W. Klasing, we have over 25 years of combined experience representing businesses and individuals in all types of IRS audits, including correspondence audits, field audits, eggshell audits, and foreign account tax audits. No matter why you are being audited or how overwhelmed you might feel, we are here to uphold your rights, guide you in the process, and minimize the damage resulting from the examination. We may even be able to prevent the audit from resulting in a criminal tax investigation. However, it is imperative that you act swiftly.
Contact us online right away to set up a reduced rate consultation, or call the Tax Law Office of David W. Klasing in Sacramento at (916) 290-6625. Please note that meetings at our Sacramento office must be scheduled in advance. You can also reach our main office by calling (800) 681-1295.
Note: If you have concerns about the privacy of our initial or subsequent communication and are unable to easily travel to our Irvine / Orange County Main Office, consider scheduling a GoToMeeting to safely and securely establish an initial or maintain an existing attorney client relationship. With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client. We are generally happy to travel to any of our appointment only satellite offices for a subsequent meeting in appropriate circumstances once a relationship is established via a signed engagement letter and the payment of an initial retainer or where enough retainer is available where a current client to cover the reasonable travel time and time required for the meeting.
Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company? Absolutely not! See our policies that address this issue here: