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Tax Audit Attorney in Salt Lake City, Utah

Every year, the IRS selects the tax returns randomly or upon noticing certain red flags to perform a comprehensive audit. Generally, tax auditing allows the IRS to know if a taxpayer accurately reported their income, expenses, and credits, detect possible errors, and identify tax fraud. If you’ve received a notice of a tax audit from the IRS, retaining a highly experienced Utah tax law attorney is imperative for proper guidance and to protect your finances. 

At Common Law PC, we’re committed to offering comprehensive guidance and skilled advocacy to clients in tax law-related matters, including tax planning and tax audits. As your attorney, we can navigate the tax auditing procedures and craft a solid strategy to protect your finances. In addition, we will work diligently to settle any tax issue with the IRS and help ensure tax compliance. We are proud to serve clients throughout Salt Lake City, Utah, and the surrounding communities of Provo, St. George, Ogden, and Park City. 

What Is a Tax Audit?

A tax audit is a comprehensive review of a person’s filed returns, tax accounts, and information to verify or make sure that the reported income, expenses, and credits are accurate. Generally, a tax audit may be done randomly or due to suspicious activities. This will help reduce the “tax gap” and ensure compliance with the applicable federal and state tax statutes. 

Types of Tax Audits

The different types of tax audits include: 

Correspondence or Mail Audit: 

A correspondence or mail audit is often done for minor issues, including missing paperwork, routine math errors, questionable deductions, and omitted income. It is the least intrusive type of audit. 

Office Examination Audit

An office examination audit is conducted by IRS personnel (tax compliance officer or revenue agent) in person. You may need to visit the IRS office for the audit. The revenue agent will review your filed returns to determine if all income has been reported and ensure the validity of all deductions. 

Field Audit

The filed audit is a comprehensive tax audit that is usually done by the tax compliance officer. The revenue agent will schedule an in-person interview, assess your records, and verify the accuracy of your tax returns. In some cases, the IRS personnel may request a tour of your organization. 

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Common Issues Leading to Audits in Utah

Here are some common issues that may result in a tax audit: 

  • underreporting or failure to report some income 

  • math or data entry errors during tax calculations 

  • questionable deductions or credits 

  • using nice, neat, round numbers 

  • discrepancies between federal and state returns 

  • claiming non-existent dependents 

  • self-employment 

  • unreported out-of-state income 

  • reporting false donations or claiming too many charitable donations 

  • reporting excessive losses 

  • home office deductions 

  • reporting several business-related deductions or expenses 

If you were selected for a tax audit, you should reach out to an experienced tax attorney immediately. Your legal counsel can enlighten you about the auditing process and help you prepare accordingly. 

The Tax Audit Process

Depending on the type of audit, the IRS can perform the auditing through mail or by scheduling an in-person interview to assess your financial records. Here are the steps involved in a typical tax auditing: 

  1. You will receive a notice of a tax audit from the IRS. 

  1. A date will be scheduled for an interview with the tax authorities. 

  1. Gather and document all your financial records, including income, receipts of expenses, and credits. 

  1. Communicate with the tax auditor for guidance on the next steps to take. 

  1. Have your attorney accompany you to the interview. 

A seasoned Utah tax audit attorney can walk you through the tax auditing process and handle all communications with the tax authorities. 

What to Expect After the Audit

After the tax auditing, the tax compliance officer will submit a comprehensive Revenue Agent Report (RAR). The possible outcomes from a tax audit include: 

  • Accurate numbers: No changes are required, or you will receive a “no change” report. 

  • Inaccurate numbers: The report will suggest possible tax changes and additional tax due. 

  • Overpaid taxes: The report may propose a refund from the IRS. 

However, if you disagree with the decision of the IRS, you may be entitled to file an appeal. An experienced lawyer can help file your appeal, negotiate a feasible resolution with the IRS, or explore your other available course of action. 

Work With a Trusted Tax Law Attorney

Although the tax authorities only audit a small fraction of filed tax returns. Nonetheless, there is a possibility that the IRS will audit your returns. If your tax returns have been selected for an IRS audit, you need to work with a trusted tax law attorney for detailed guidance and to help you navigate crucial decisions. 

At Common Law PC, we have the diligence and experience to assist and guide individuals and corporations through the complex procedures involved in tax audits. As your legal counsel, we can explore your possible options, help you prepare for the tax audit, and guide you through the processes involved. Also, if you fail the audit, we can help you appeal the decision or negotiate a reasonable resolution with the tax authorities. 

Tax Audit Attorney Serving Salt Lake City, Utah

If you were selected for a tax audit, contact us at Common Law PC today to schedule a simple consultation. Our reliable lawyer can offer you the experienced legal guidance and brilliant advocacy you need to navigate intelligent decisions in your tax audit. We’re proud to serve clients across Salt Lake City, Provo, St. George, Ogden, and Park City, Utah