For any taxpayer, a letter from the IRS is the last thing they would want to see. If your mail has brought an IRS audit letter or notice from the IRS Criminal Investigation Division, you must consult an IRS attorney near me. Before responding to the IRS, you must clear your thoughts and explore all the available options you have. Taking any decision in haste can put in more trouble than now. Even the smallest mistake of not documenting all the required financial documents can attract criminal investigation.
Here are some things you should ask yourself soon after receiving IRS notice.
Question 1: What made the IRS pick my tax returns?
Upon receiving the IRS audit notice, any taxpayer will ask why the IRS picked them. Your top priority must be to determine the cause of IRS investigation on you. Once you know why the IRS wants to audit your tax returns or investigate your financial records, you will be able to devise a strategy to defend yourself. Besides underpaying and underreporting income taxes are a prime reason for IRS audit, other statutory violations may bring you under the radar of the IRS.
Question 2: Is anyone else involved in the IRS investigation?
If you are involved in overseas business or deal with multiple clients or vendor, you should check if anyone else associated with you have received the audit letter. This will help you understand the nature of the IRS investigation and give you enough insight to prepare a solid defense strategy.
Question 3: Did you missed out on the necessary forms while filing income tax returns?
Most IRS audits are triggered when a person fails to submit all the required forms to the IRS or Financial Crimes Enforcement Network. To prevent the IRS from carrying out any criminal investigations, you must contact an IRS tax law specialist to address the issues.
Question 4: Do you owe any interest or penalties to the IRS?
Besides determining whether you have unintentionally omitted necessary documents or not, you should also check if you owe any money to the IRS. If you fail to repay the IRS’s interest and penalties, the amount will only keep increasing. You must pay back the IRS voluntarily to avoid any criminal charges against you.
Question 5: Can you repay the amount you owe to the IRS?
Once you have determined the amount, you owe to the IRS, ask yourself if you can repay in full? If you can demonstrate that you are not financially capable of repaying the interest to the IRS, you may be able to appeal for an offer in compromise. Besides this, there are several repayment plans available to the taxpayers.
Question 6: Do you risk non-tax-specific prosecution? The IRS Criminal Investigation Division does not imply only the Internal Revenue Code. The Criminal Investigation Division of the IRS investigates various federal violations. If you think your actions could attract law enforcement’s attention, you should seek help from an IRS tax attorney.