Threat of an IRS Audit or State Tax Audit can justifiably strike fear into the potential audit victim. Business owners, professionals, corporations, partnerships and LLCs have more complicated business transactions than most W-2 wage earners. Fear of tax increases, tax penalties such as negligence penalties, late filing penalties and late payment penalties as well as interest on the tax increase and penalties, is real. Big increases in tax dollars owed and even claims of civil tax fraud are the potential result of a mishandled tax audit. IRS auditors, known as Internal Revenue Agents, and their criminal counter part, CID (Criminal Investigation Division) agents have extensive training and education. Without the assistance of a qualified tax lawyer before the audit even starts, a taxpayer is starting behind the IRS professionals. The first step is preparation and acquisition of tax law information.
* General Information Concerning Audits
You are not going to jail!!!!!
Almost all tax audits are simply about the various levels of government trying to get more money. Every year, usually around the April 15 filing date, the IRS announces a vicious prosecution against nationally (or locally) known high profile individuals. This is part of the IRS enforcement technique to scare taxpayers into “following the rules” imposed by the Treasury. But the fact does not change that few taxpayers are indicted solely for tax matters. An IRS Audit notice is for money not jail!
* Do Not Wait to See How the Audit “turns-out” to consult a tax lawyer!
If you need assistance call
Ronald J. Cappuccio, J.D., LL.M.(Tax) at (856) 665-2121