Taxpayers ( individuals and businesses) that have fudged the numbers on their income tax returns are likely to be selected by the IRS for a tax audit ( either a correspondence audit or an in-person field audit or office audit). Most IRS audits are due to automatic Discriminant Function System ( DIF) scoring, which essentially refers to a discrepancy between a taxpayer’s return and statistically similar returns in the same industry. If your return is flagged by the IRS, you may receive notice that an IRS examiner wants to further investigate the matter. The IRS almost always sends the notification of a tax audit through the mail, requesting that you provide specific documents that substantiate your income, credits, and deductions.
If you live in California and you’re facing an IRS tax audit, you should know that you’re at risk not only for tax penalties and interest but also for criminal tax prosecution. No IRS audit should be taken lightly which is why it’s in your best interest to retain as soon as possible a skilled and CPA trained tax audit attorney at a reputable tax law firm such as Dallo Law Group that handles exclusively cases involving tax disputes with the IRS and other taxing agencies. A savvy and experienced California tax audit lawyer will help you navigate the situation from start to finish and properly substantiate all your income, deductions, and credits.
Keep in mind that taxpayers under an IRS tax audit have little credibility, so arguing that your filing mistakes were not intentional is not a good idea. Likewise, sitting down with the IRS agent is not prudent because the agent may use various tactics to obtain criminal admissions from your statements and conduct. When you know that you fudged the numbers on your tax returns but you have a skilled tax audit defense lawyer to represent you before the IRS, you can rest assured that they will protect you against potential criminal tax prosecution due to evidence of tax fraud. Even $10,000 of income that you failed to report can result in a referral to an IRS tax fraud specialist who may pass your case to the IRS criminal investigation department.
If you’re facing an IRS tax audit in California and you want to discuss your case with a skilled and reputable tax audit attorney who is also CPA trained, do not hesitate to get in touch with Dallo Law Group by filling out the online contact form or calling 619-795-8000 to schedule a free initial consultation and see how you can survive the tax audit.