Awards & Recognition
A federal tax audit poses numerous financial and legal dangers, even for a taxpayer who believes himself or herself to be in compliance. When the audit concludes, the taxpayer may be told he or she owes unpaid taxes to the IRS, on which interest may have been accruing for months. In addition to interest charges and unexpected tax liabilities, IRS audits can also lead to penalties, such as failure-to-file or failure-to-pay penalties. Depending on what the auditor finds, he or she could even refer the case to the IRS Criminal Investigation Division (IRS-CI), which could cause the taxpayer to be charged with tax evasion or related offenses.See our Audit Representation Q and A Library Because of the disastrous outcomes that can result from a tax audit, it is imperative for taxpayers to take all possible measures to protect themselves. At the Tax Law Office of David W. Klasing, we are Oxnard IRS attorneys who blend civil and criminal tax expertise to defend our clients effectively. From the day you receive your audit notification letter from the IRS, to the day you notified of the audit’s results, our dedicated tax attorneys will be there to fight in your corner and uphold your rights. Our founding attorney, David W. Klasing, possesses more than a decade of public auditing experience, granting our award-winning tax firm a wealth of strategic insight into the IRS’ auditing tactics. If you need federal tax audit representation in Oxnard, CA, look to our office for 24-hour support.
What Are the Chances of Being Audited by the IRS?
Each year, the IRS conducts approximately one million tax audits, which means only a fraction of a percent of the U.S. population is selected for federal auditing. However, while the number of audits is proportionally low, some taxpayers are more likely to be chosen than others. Examples of audit triggers that increase your odds of selection are discussed in the section below. Some triggers are innocuous, such as the salary you earn or the industry you work in, while others are more likely to be related to tax fraud or noncompliance, such as failures to file returns or report income.See our Non-Filer Q and A Library
What Triggers a Tax Audit?
Some audit triggers involve demographics or factors you cannot change, such as how much you earn or the type of business you operate. For instance, you are more likely to be audited if you are self-employed, have your own dental or veterinary practice, or operate a business that conducts most of its transactions using cash. In some cases, taxpayers are even selected at random.
That being said, many federal audits are rooted in suspicious financial activity. Common examples of tax audit triggers include failing to file tax returns, underreporting your taxable income, concealing some accounts while reporting others, lying to IRS agents, padding business expenses, claiming improper tax credits, or transferring assets – for instance, to a spouse or business partner – in an effort to avoid foreign account disclosure requirements, such as the FBAR requirement.See our 2011 OVDI Q and A Library
See our FBAR Compliance and Disclosure Q and A Library
See our Foreign Audit Q and A Library
How Do I Dispute the Results of a Federal Audit?
The IRS provides various channels for taxpayers to dispute, or “appeal,” improper auditor findings. If you do not agree with the results of an IRS tax audit, you may request appeals by submitting the appropriate materials (collectively called your “protest letter”), which should include your contact information, a statement expressing your wish to appeal, the approximate dates at issue, an explanation of the facts at issue, your specific disagreements with each fact, and perhaps most importantly, your factual or legal basis for disputing each fact. Our IRS audit appeals attorneys are highly familiar with this process and will help you to prepare a stronger, more compelling protest letter, increasing your odds of success. Depending on whether the amount in question is over or under $25,000, it may be appropriate to, as an alternative to a protest letter, file a Small Case Request.
Oxnard IRS Federal Tax Audit Lawyers + CPAs Serving Southern California
Even if you believe that you have complied with the law and are “in the clear,” it is wise to treat an audit notification seriously by conferring with a trusted IRS attorney as soon as possible. Audits have a way of growing in depth and scope, and in some cases, can even culminate in IRS criminal investigations.
If you or your business has been selected for a federal tax audit, including a federal income tax audit, federal employment tax audit, or foreign account tax audit, the best course of action is to contact a tax attorney for confidential and nuanced support. Call our Oxnard tax office at (805) 617-4566 to speak with an attorney confidentially in a reduced-rate consultation, or contact the Tax Law Office of David W. Klasing online. Note: All consultations in our Oxnard satellite office are by appointment only. See our Employment Tax Law Q and A Library 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!
