5 Mistakes to Avoid When Facing an IRS Audit

If you’re facing an Internal Revenue Service (IRS) audit, you need to be very careful. If you’re behind on your federal taxes, you could be facing substantial liability. At the same time, if you’re not behind on your federal taxes, you will still need to defend against the audit successfully to avoid the imposition of unwarranted liability for back taxes, interest, and penalties. Learn more from the Washington D.C. tax lawyers at Thorn Law Group.

What Not to Do When You’ve Received an Audit Notice from the IRS

When facing an IRS audit, knowing what to do and what not to do are equally important. With this in mind, here are five important mistakes to avoid if you’ve received an audit notice from the IRS:

1. Don’t Assume You’ve Made a Mistake

If you are facing an IRS audit, this doesn’t necessarily mean that you have made a mistake on your federal tax returns. The IRS picks taxpayers to audit through a variety of means, including random selection. As a result, you should not assume that you have made a mistake simply because you are facing an audit.

2. Don’t Assume Everything Will Be Fine

While you shouldn’t assume that you’ve made a mistake on your federal returns, you also shouldn’t assume that everything will be fine. When facing an IRS audit under any circumstances, it is critical to take the audit seriously. You need to ensure that you make informed decisions about your next steps, and if you’ve made mistakes on your federal returns, you will need to take a strategic approach to the audit process.

3. Don’t Withhold Information You Have an Obligation to Disclose

Taxpayers have an obligation to disclose certain information during the audit process. If you improperly withhold information from the IRS, this will raise red flags—and this could lead to additional scrutiny. You also need to be very careful not to misrepresent any information to revenue agents, as this can potentially be prosecuted as a federal offense.

4. Don’t Give the IRS Everything

While you should disclose the information you are required to disclose, you should not simply give the IRS access to everything and let revenue agents sift through your files. Although being an “open book” might seem like the best approach, this approach can prove risky as well.

5. Don’t Ignore the Risks Involved

Speaking of risks, when facing an IRS audit, it is important not to overlook the risks involved. For taxpayers who are behind on their federal taxes, audits can lead to substantial additional liability. Additionally, if revenue agents find evidence of intentional tax evasion or tax fraud—or if they believe that you have attempted to mislead them during the audit process—this could lead to a referral to IRS Criminal Investigation (IRS CI).

Contact the Washington D.C. Tax Audit Lawyers at Thorn Law Group

Are you facing an IRS audit? If so, we encourage you to contact us promptly for more information. To speak with one of the experienced Washington D.C. tax audit lawyers at Thorn Law Group in confidence, call 202-349-4033 or contact us online today.