Federal IRS Tax Audits and Appeals Attorney

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Tax Audits and Appeals

Tax disputes can be overwhelming for individuals and businesses alike. Whether it’s a tax audit or a tax appeal, the stakes are high, and the consequences are often severe.

Because of this, it’s crucial to have professional representation during these processes. Not only can a tax professional help you navigate the complex and ever-changing tax laws, but they can also provide a level of expertise and advocacy that can greatly increase your chances of a successful outcome.

The attorneys at Ledingham Law are skilled and experienced in tax law. We can help you through the process successfully. Contact us today at (240) 673-6869 for a consultation

What is a Tax Audit and Tax Appeal?

A tax audit is a process by which the IRS examines and verifies the accuracy of your reported income and deductions, while a tax appeal is a process in which you dispute the findings or decisions of the IRS.

During a tax audit, your records, financial statements, lifestyle, and business activities are reviewed in detail. What the IRS requires will depend on the type of audit they’re conducting, either a mail audit, office audit, or field audit.

If you disagree with the results of a tax audit, you have the right to file a tax appeal. This involves presenting arguments and evidence to challenge the findings of the IRS. The tax appeal process can be complex and requires a strong understanding of tax laws and legal procedures.

Reasons for a Tax Audit

Tax audits are initiated for a variety of reasons:

  • Discrepancies or inconsistencies in the reported income: If the IRS notices a significant difference between the reported income and other sources of information, such as W-2 forms or 1099 forms, they may flag the tax return for further investigation.
  • Claiming of excessive deductions or credits: If your deductions or credits seem too high compared to your income level or industry standards, it may raise red flags for the IRS.

Possible Outcomes of a Tax Audit

After undergoing a tax audit, there are several possible outcomes you may face:

  • No changes are made to the tax return: This is the most desirable outcome, as it means the IRS has found no discrepancies or errors in the reported income and deductions. In this case, your tax return remains as initially filed, and there are no further tax liabilities or penalties.
  • Adjustments to the tax return that result in additional taxes owed: This means that the IRS has found errors or inconsistencies in your reported income or deductions and has made adjustments accordingly. As a result, you may be required to pay additional taxes, penalties, and interest on the amount owed.
  • Adjustments to the tax return that result in a refund: This outcome is rare but possible if the IRS finds errors that result in an overpayment of taxes. In this case, you are entitled to a refund of the excess taxes paid.

The Tax Appeal Process

The tax appeal process is important if you disagree with the findings or decisions made by the IRS during a tax audit. Your disagreement could be caused by:

  • Needing clarification on the complex tax problems
  • A violation of your rights during the audit
  • An inaccurate assessment based on incorrect information

The appeals process provides an opportunity for individuals and businesses to present their case and seek a fair resolution.

Note: Not everyone can appeal. If your case is eligible for an appeal, the IRS notice usually has an explanation of your appeal rights.

The tax appeal process begins with you filing a formal appeal, stating the reasons for your disagreement, and providing any supporting evidence. It’s best to make your appeal request to the compliance individual at the IRS who handled your case.

This appeal is then reviewed by an appeals officer, who may schedule a hearing to further discuss the case. During the hearing, you’ll have the opportunity to present your arguments, provide additional evidence, and address any concerns the IRS raises.

After the hearing, the IRS appeals office will make a decision based on the information presented. You’ll be notified of the decision in writing.

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Hire A Federal IRS Tax Audit and Appeal Attorney

Are you facing a tax audit or a tax appeal and you’re unsure of how to navigate the complex process of IRS tax audits? As a Maryland IRS Tax Audit and Appeals Attorney, Jessica Ledingham can provide expert guidance and representation to help you successfully navigate these intricate matters.

Take the crucial first step towards resolving your IRS tax audit or a tax appeal by contacting Jessica Ledingham at (240) 673-6869 today. With her expertise in IRS tax audits, she can help you address your tax-related issues and regain your peace of mind.