San Diego IRS Tax Audits Lawyer
There's really not much mail you can receive that's worse than an IRS Audit Letter. You know the letter that says "Come on down to see us or we’ll be out to see you. Oh, and by the way, bring in every piece of paper you have for the last 3 years."
The time away from your job and family is considerable when dealing with an IRS Audit. The worst part is that if you don’t comply, the cost of any changes by the Auditor can be more than your annual income with all the Penalties and Interest. We don’t suggest that any Individual or Business meet with the IRS directly, in connection with an Audit. The IRS Auditors are trained to get more information out of you than you have to provide. They audit people and businesses all day long, every day! How are you supposed to WIN?
The first thing we recommend is that you don’t speak or meet with the auditor. Have an independent Attorney handle all correspondence and meetings with the IRS. This puts the IRS on notice that you are serious about winning your audit. The preparation before the audit appointment is extremely important.
Our Firm handles IRS Audits by actually performing an audit of your records in our office before the scheduled Audit Date. This way we uncover any areas where your documentation is not adequate before the IRS Auditor looks at your records.
IRS Audits usually start with one year and then expand to other years as the auditor makes changes. Your goal must be "To stop the Auditors in their tracks on the first year being audited in order to prevent any additional changes in other years." Our firm meets with the IRS Auditor in either their office or our office, BUT Not In Your Home or Office. Our methods allow you to continue on with your business and personal life and let us deal directly with the IRS.Secrets of IRS Auditors
These are some "effective interview techniques" that IRS Auditors are taught to use when meeting with taxpayers.
- Use open-ended questions.
- Use probing questions.
- Restate responses.
- Listen to the taxpayer and the POA (person with Power of Attorney)
- Be courteous and businesslike.
- Read taxpayer's non-verbal body language.
- Control the interview.
- Remain calm.
- Appear confident.
- Be well prepared.
- Consider issues in proper order (volatile vs. non-volatile), volatile being last!
- Be observant.
- Use spontaneous follow-up questions.
- Clarify responses.
- Ask for examples.
- Be assertive and persistent.
- Avoid arguments.
- Give the taxpayer an opportunity to ask questions.
- Express appreciation.
- Verbally pin down taxpayer when appropriate.
- Maintain composure.
- Contain your excitement.
- Don't interrupt the taxpayer.
- Pace the interview.
- Have the taxpayer demonstrate the flow of transactions.
- Read the taxpayer's perception of you.
- Have the taxpayers explain their terminology.
- Consider the need to interview both spouses.
- Review important responses from previous interviews to refresh the taxpayer for the current interview.
- Be methodical and organized.
- Make eye contact.
- Be conscious of note-taking so as not to distract the taxpayer.
- Adapt your appearance to be appropriate for the circumstances.
- Be aware of your non-verbal body language.
- Make appropriate use of "silence".
- Ask only one question at a time and wait for a response.
- Use appropriate small talk.
- Don't anticipate answers.
- Interview at the place of business, examine at the place of business.
- Remember that interviewing involves both the initial interview as well as each contact with the taxpayer/representative-interviewing is a continuous process.
IRS Auditors learn these are some reasons taxpayers don't report income.
- Don't want to pay tax.
- Can get away with it.
- Self employment tax too high.
- No money to pay.
- It's part of our culture.
- I can beat the audit lottery.
- Big guys do it, why not me?
- My friends cheat.
- Income not shown on 1099 form.
- Industry practice (for example rebate checks).
- Expenses=income, why report?
- My prices won't be competitive if I pay tax.
- Government waste.
- Opposed to government programs.
- No benefits to me.
- Tax laws are unfair.
- This is my own tax shelter.
- Selfish, greedy.
- To support gambling habit.
If you are facing an audit or have received a Notice that additional tax, including interest and penalties, will be assessed as the result of an audit, find out, without cost to you, exactly what your options are!
Call for a FREE Consultation Now!