In the event you are selected for audit, there are typically three steps of review:
1. Help With IRS Audits
The IRS has a complicated structure for dealing with tax audits. In my experience it has often been adversarial, hostile and time consuming. The auditor will almost always interpret the federal tax law in the harshest way possible in order to generate the largest possible tax liability. Having an advocate is a real benefit here.
If you are being audited by the IRS, there is much that needs to be done and carefully. These cases are not for the faint of heart. You must get on top of the issues and evidence quickly with an experienced tax representative familiar with your legal rights and the IRS administrative and judicial processes.
2. IRS Appeals
Many IRS auditors believe their decisions are final. They are wrong. There are several levels of administrative appeals that are heard by much more educated and experienced appeals agents’ who frequently are seeking the right result. Don’t be intimidated by an IRS auditor.
3. Litigation – U.S Tax Court
There are two ways to litigate a tax case. If you haven’t paid the tax you owe, file suite in the United States Tax Court. If you have paid the taxes, you can file suit in the United States District Court:
If you are audited and dissatisfied with the audit results, you can appeal your case to an IRS appeals agent. If you are dissatisfied with the appeals agents decision, you can appeal it to the United States Tax Court and attempt to resolve your case with an IRS attorney. These cases are frequently settled without the expense of a trial, and are often reviewed by an impartial and competent attorney. The IRS cannot collect taxes while you pursue these appeals and litigation. Again, the taxes don’t have to be paid until these proceedings are concluded.
Litigation – U.S District Court
If you were audited in the past and consented to an audit liability, and perhaps have even paid part of it, you should know that we can often reopen the original audit. If the new auditor fails to correct the erroneous audit report, we can appeal to the IRS appeals division for relief and, if necessary, file suit in the U.S. District Court.