IRS AUDIT DEFENSE FOR SMALL BUSINESS
Tax Defense Counsel to S Corporations, LLCs, Partnerships & Sole Proprietorships
Is your small business under examination by the IRS? You need experienced tax counsel to defend your business and protect your rights.
The IRS conducts three basic types of audit of examination: IRS Correspondence Audits (i.e., through the mail), IRS Field Audits (i.e., the IRS comes to you), and IRS Office Audits (i.e., the IRS has you come to them).
IRS Personal Income Tax Audits – The Internal Revenue Service audits a large number of personal income tax returns each year, including the personal income tax returns of business owners who operate their companies as sole proprietorships.
The commencement of a personal income tax audit may be due to any number of reasons, ranging from a random audit to an audit based on certain specific characteristics of a particular income tax return to an audit based on information relating to an individual taxpayer gleaned by the IRS from third-party sources.
If a taxpayer receives an IRS notice that his return is the subject of an audit, he should immediately contact an attorney familiar with tax matters to represent him. Going into an IRS audit unrepresented can prove to be a costly error for a taxpayer, and delay in engaging counsel to represent you before the IRS is not a good strategy to pursue.
IRS Business Income Tax Audits – In addition to personal income tax returns, the IRS regularly audits business tax returns, such as income tax returns filed by C corporations, S corporations, general and limited partnerships, and limited liability companies.
The range of issues posed by IRS audits of business returns is great. For example, the IRS may challenge whether certain expenses incurred by the business are currently deductible or should be capitalized over a number of years.
Benefits of Engaging DPS Legal Counsel for your IRS Tax Audit
Once a taxpayer engages Dan Smith of DPS Legal Counsel to represent him/her on an IRS audit, Dan will immediately be your point of contact with the IRS. He will handle all communications with the IRS and take that burden off your shoulders.
And, remember, you have rights as a taxpayer. One of those rights is to retain an authorized representative of your choice to represent you in your dealings with the IRS. Your authorized representative can be either an attorney, a certified public accountant, or an enrolled agent.
An advantage that a tax attorney has over either a CPA or an enrolled agent in dealing on your behalf with the IRS is that your discussions with a tax attorney are fully protected by the attorney-client privilege. The privilege for CPA’s and enrolled agents is more limited as it does not extend to cases in which the IRS pursues a criminal investigation or charge against the taxpayer.
Another key advantage that a tax attorney has in representing you in your dealings with the IRS is quite simple and goes to the heart of the IRS tax problem you may be experiencing–all of the IRS tax notices you are receiving, all of the positions the IRS is taking in its dispute with you, and the fundamental basis and grounds for your IRS tax problem (as well as all of the possible solutions to your problem) are based on federal tax law. Your authorized representative must be knowledgeable about and skilled in his ability to research, review, and interpret provisions from multiple sources of federal tax law, including the Internal Revenue Code, the Treasury Regulations, various IRS written materials, and court decisions.
Dan Smith of DPS Legal Counsel is a tax lawyer with experience in IRS audits and collections, at the IRS Appeals Office, and in Tax Court. He has successfully handled IRS matters involving novel tax issues as well as significant dollar amounts. DPS Legal Counsel is available to represent you in your IRS audit or IRS tax problem. Get in touch to discuss your situation today.
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