3 Reasons To Hire A Lawyer To Assist With A Business Tax Audit
Are you being audited by the Internal Revenue Service (IRS) because it is believed that you failed to report a portion of your business income during tax season? If this is the first time that you have ever been audited and you are afraid of what might happen, it might be a good idea to get help for a lawyer so the process will be smoother. Take a look at the information in this article to find out how a financial lawyer can be helpful as you are dealing with the IRS concerning your business income.
1. The Alleged Tax Debts Will Be Reviewed
One of the first things that must be done is determining why you were audited by the IRS for not reporting all of your business income. A lawyer will need you to give him or her documents of the business accounting that was done for the tax year that the IRS is concerned about. If you are being audited for multiple years, you will need to provide accounting documents for each year. The lawyer will then try to figure out how much money was actually made and if you truly failed to report all of your business income or not. If someone else is responsible for handling your business accounting, he or she might be investigated by the lawyer in case your business income records were purposely miscalculated due to fraud being committed on his or her part.
2. Corresponding with the IRS On Your Behalf
A lawyer will be able to correspond with the IRS in a more professional manner than you are able to. You must keep in mind that it is important to be cautious about the information that is provided to the IRS. You don't want to give them more information than you are legally required to do. A lawyer will be able to pinpoint the exact information that they need and speak about it on your behalf, whether it is in person or via the mail. If the lawyer found that a portion of your business income was accidentally misreported, he or she will try to convince the IRS to give you the minimal penalty.
3. Representation If You Are Facing Incarceration
If you are facing incarceration for tax fraud because your business income was falsely reported, you are will likely have to attend a hearing and trial. The lawyer will argue the case on your behalf from start to finish. He or she may be able to convince the court that incarceration is too harsh of a penalty and that you did not purposely commit tax fraud. Speak to a lawyer so he or she can help you sort out your business finances with the IRS as soon as possible.
Share