E: dpeterson@burkhartpeterson.com / T: (210) 377-3311

Audit Representation & Reconsideration

A federal or state tax audit typically begins with a letter stating that a return or group of returns have been selected for an examination. Receiving a letter of this nature can be very disheartening, especially if you are not well advised of how your return was prepared or if you suspect that you may not have the documentation needed to support all the amounts reported.

Just because a return is audited doesn't mean that it may not be correct. Sometimes returns that are perfectly prepared will still be selected for audit. However, this is not typically the case. An income tax return is usually selected for examination because of one of the following:

  1. income items that were reported to the taxing authorities are mistakenly omitted from the tax return filed, thus making the omissions apparent;
  2. certain relationships of some items to others within the same return suggest the likelihood of irregularities (based on a numerically calculated DIF score); or
  3. other information comes to the attention of the taxing authorities that indicates that a return may have substantially incorrect amounts reported.

Not only can an audit be a lot of work to handle, but an uninformed taxpayer can do a great disservice to their own case by trying to represent themselves. Self-representation is generally not something that would be recommended for a taxpayer to attempt. Even if you've been absolutely honest and all of your documents are in good order, meeting with the IRS yourself can be intimidating and can lead to additional tax assessments that might possibly have been avoided with proper professional representation.

Fortunately, our firm can manage all aspects of your audit so that you don't even have to meet with the taxing authorities. We can help you reconstruct lost or missing documents and support items using alternative sources of documentation, such as third-party affidavits, etc. when typical records are not available.

In addition to income tax audits, we can also handle your payroll, sales or other business tax audits. Our representatives have dealt with a number of cases wherein good business records have not been maintained, yet we have found alternative ways to get favorable end results.

Examination Appeals:
In the event that disagreements arise on a tax audit, appeal rights generally exist wherein the issues of dispute can be heard by Appellate Officers. Our firm is accustomed to dealing with government and state representatives and can often times help find an amicable resolution with the Appellate Officers. It is somewhat rare that a case cannot be resolved amicably at this level, but in the event that it can't, a US Tax Court Petition can be filed to preserve appeal rights and to request a trial.

Audit Reconsideration:
Sometimes taxpayers learn the hard way and suffer the bad results that can accompany self-representation. If you or your business has been the victim of poor representation or bad organization, it may not be too late to get the audit resolved in your favor, even if it has already concluded. A program known as audit reconsideration exists wherein cases can be re-opened for corrections, even if legal appeal rights have already expired. This is very common for audits concerning denied dependents and/or denied qualifying children for purposes of earned income credit.

If you have been notified that you will be audited, have an ongoing audit or believe that a previously concluded audit did not ultimately treat you fairly, contact our office to understand what can be done to resolve your case and/or the existing liabilities.

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