A tax return audit by the IRS or FTB is one thing all business owners want to avoid. It involves an intense inspection of all your business financial records and documents to ensure you filed your returns correctly. If you’ve received a notification of tax audit, you may feel terrified and confused about what to do next. Fortunately, you don’t have face the IRS or FTB officials alone. You can hire a tax attorney to be on your side and prepare you for the in-depth review of your financial records. In this article, we’ve highlighted a few benefits of hiring an experienced tax attorney when you’re facing a tax return audit.
1. Tax Lawyers Versus CPAs
When you’re facing a tax audit, you might think of hiring a CPA or accountant to help you prepare for the audit. While an accountant or CPA, may understand the tax code well, they can’t defend you in an audit situation. It’s only a tax attorney who has the needed tax knowledge to help you face the audit officials. He can also negotiate on your behalf and defend you in case there’s a litigation. An FTB lawyer will be on your side to interpret the law and protect you from doing jail time or paying hefty fines in case your records are found to have an issue.
2. Knowledge of Law Terms
One thing that can distress you during a tax audit is the terminology and procedures used. An experienced IRS or FTB tax attorney can be there for you to explain what is needed by the tax auditor and all the procedures that will be done. As a tax law specialist, your lawyer will also detect when the auditor is looking too deeply into your tax return to incriminate you.
3. Reducing Penalties and Other Charges
When an audit finds mistakes in your financial records, you could be facing criminal charges, payment of back taxes, interests and penalties. Having an attorney present during the audit can benefit your case in numerous ways. He will make sure that the facts are explained in your favor and that you’re fairly treated. A tax lawyer will also ensure that there’s no misconduct by the auditor and that your interests are protected. If the auditor asks you inappropriate questions, a tax attorney can advise on how to react or respond to them.
These are some of te benefits of hiring a tax attorney. Don’t wait until the IRS or FTB have made their determination to start finding a tax lawyer. Do it now!