When to use a Tax Attorney

by Steve Patterson

Do you know what to expect or what you need to do if you are chosen for an IRS audit? The purpose of this article is to teach the reader what they will need to know to survive being audited by the IRS.

Every tax payer is at risk of being audited by the IRS. Although it isn't very likely to happen, it can and does happen. Some factors put certain people at a higher risk of being audited then others. If you are among the few that receive a letter, learning what to expect can help you get though an audit.

Why Me?

There are many reasons that a tax return may be chosen for audit. Some of those reasons include significant capital gain, large gross incomes or those filed with a Schedule C are most commonly chosen for audit. Also, taxpayers that don't properly report their income or other items are likely to be selected for an audit.

How The Audit is Conducted

An audit may be done completely through the mail; others will require you to meet an auditor at an office of the IRS. You will know if you are chosen because you will receive a letter explaining what information and paperwork the IRS needs as well as the year that you are being audited for. You can request that the date be postponed if you need extra time to prepare.

What to Bring to the Audit

When you go to your appointment at the IRS, only bring the information that they have specifically requested from you. If you bring other documents, such as returns from previous years', you may find yourself being investigated for other reasons.

Hiring an Attorney

If you want to, you can choose to be represented at the audit by a tax attorney, an accountant, an IRS agent or, the person that prepared your tax return. Representation can be costly but can be worth it by making it so you do not have to appear at a meeting. To decide if it makes sense for you to bring representation you should consider some things such as how complex your case is, the dollar amount that you are being audited for, to name a few. You should also consider how comfortable you are about dealing with the IRS yourself when trying to decide if you want to take representation.

About the Author
Steve Patterson is an author for the site 2009 Taxes.