What Not to Do When Facing an IRS Tax Audit

If you are facing an IRS audit (or if your business is facing an IRS audit), you need to take your situation very seriously. IRS audits can pose significant risks for both individual and corporate taxpayers, and avoiding unnecessary consequences requires an informed and strategic approach. Learn more from Boston tax audit lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.

5 Costly Mistakes to Avoid When Facing an IRS Audit in Boston

Far too often, taxpayers who are facing IRS audits make mistakes that lead to unnecessary liability and risk exposure. For example, here are five all-too-common mistakes that taxpayers need to be careful to avoid:

Mistake #1: Assuming Everything Will Be Fine

Even if you are confident in the accuracy of your (or your business’s) federal tax returns, you should not assume that everything will be fine. Revenue agents may still raise concerns, and you will need to be prepared to address these concerns effectively to avoid unnecessary liability for back taxes, interest, and penalties. The audit appeals process exists for a reason, and if you do not handle your (or your business’s) audit effectively, you may find yourself needing to file an appeal.

Mistake #2: Assuming There is Nothing You Can Do to Avoid Additional Liability

While it is important not to assume that everything will be fine, it is equally important not to assume that there is nothing you can do to avoid additional liability. Facing an IRS audit doesn’t necessarily mean that you owe more than you have paid. Additionally, even if you do owe more than you have paid, there are still options available for mitigating your liability to the IRS.

Mistake #3: Providing Too Little (or Too Much) Information to the IRS

Taxpayers who are facing audits need to be careful to avoid providing either too little or too much information to the IRS. Both of these can prove to be very costly mistakes. Withholding information from the IRS can raise red flags and lead to additional scrutiny, while providing too much information could expose you (or your business) to unnecessary additional liability.

Mistake #4: Providing False or Misleading Information to the IRS

Along with being careful not to provide too little or too much information to the IRS, you also need to ensure that you do not provide any false or misleading information to revenue agents. This can lead to serious federal allegations regardless of your (or your business’s) current tax compliance status.  

Mistake #5: Trying to Handle the Audit on Your Own

Due to the complexity of the IRS audit process and the potential risks involved, it is important not to try to handle the process on your own. To mitigate your risk and maximize your chances of securing a favorable and efficient resolution, you should engage experienced tax counsel as soon as possible.

Request a Call with Boston Tax Audit Lawyer Kevin E. Thorn

If you need to know more about what to do and what not to do when facing an IRS audit, we invite you to get in touch. To request a call with Boston tax audit lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, please call 617-692-2989 or contact us confidentially online today.