QUESTION
Do I really need an attorney for an IRS tax audit?
Asked on May 14th, 2015 on Taxation - Michigan
More details to this question:
I am extremely stressed out because of an upcoming IRS audit that is taking place at the IRS office. I own a very small independent contracting business and I am being audited for the 2013 year. I conduct most of my business in cash and I have not done a good job of keeping records. In particular, I have kept hardly any of my receipts. I do not inflate expenses or hide income or anything but I am incredibly worried. Should I hire an attorney for this audit?
2 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Generally, I advise all business people to have an attorney represent them at an IRS audit. ?Most people are quite nervous about an audit and being nervous tends to make you unsure and causes mistakes. ?Being represented by an attorney, deflects a lot of the pressure on the attorney. ?Of course, the attorney knows the limits of the IRS's authority and the IRS is much more willing to negotiate with an attorney than with the client. You have an additional problem - you don't have adequate records to support your deductions. ?The attorney will be able to help you reconstruct your records and support your return.
Answered on May 18th, 2015 at 5:43 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You most assuredly should see a tax attorney, and an accountant who is hired by the attorney to maintain attorney-client privilege prior to the audit.
Answered on May 14th, 2015 at 3:21 PM