5 Mistakes to Avoid When Facing an IRS Income Tax Audit

You have filed your 2020 income tax returns with the Internal Revenue Service (IRS), and you assumed this meant that you were done thinking about your taxes until next year. But, you have just received an audit letter from the IRS, and now you are wondering what – if anything – you need to do to make sure you (i) do not pay more than necessary, and (ii) are not at risk for facing allegations of federal tax fraud.

If the IRS is auditing your 2020 income tax returns, you need to deal with the audit head-on; and, in doing so, there are some critical mistakes you need to avoid. Here is a list of five mistakes to avoid during an IRS audit from Boston tax audit lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group:

Mistake #1: Ignoring the Audit

If the IRS is scrutinizing your tax returns, you cannot simply ignore the situation and hope it will go away. The IRS is going to see the audit through to its conclusion; and, if you do not do anything to protect yourself, the odds are that the audit will not be resolved in your favor.

Mistake #2: Making Assumptions

When facing an IRS audit, you cannot assume that everything will be fine, but you also cannot afford to assume that a negative outcome is a foregone conclusion. Additionally, when corresponding with the IRS, you need to ensure that you are making accurate representations that are not based on assumptions or incomplete information.

Mistake #3: Submitting False Information

During an IRS audit, it is extremely important not to submit false information. If you make false statements or submit falsified records in hopes of avoiding additional tax liability, this will almost certainly lead to an outcome that is far more severe than owing additional tax, interest and monetary penalties to the IRS.

Mistake #4: Overlooking Potential Solutions

If you owe more tax than you paid, there are a number of ways that you can manage your additional tax liability—and potentially pay less than the full amount you owe. For example, you may be able to negotiate a settlement agreement, or you may be eligible for an offer in compromise.

Mistake #5: Handling the Audit on Your Own

In order to protect yourself against unnecessary consequences, the best thing you can do during an IRS audit is to hire an experienced tax lawyer to represent you. There are many potential defenses to allegations of underreporting or underpaying your federal income tax liability, and an experienced attorney will be able to use his or her extensive knowledge of the Internal Revenue Code (IRC) and IRS audit procedures to achieve a favorable result on your behalf.

Request a Confidential Consultation with a Boston Tax Audit Lawyer at Thorn Law Group

If you are being audited by the IRS, we encourage you to contact us immediately. To speak with Boston tax audit lawyer Kevin E. Thorn at Thorn Law Group in confidence, call 617-692-2989, email him at ket@thornlawgroup.com or request an initial consultation online now.