Maryland Criminal Tax Lawyer Talks About IRS Audits and Why People Fear ThemNews
Posted in on September 28, 2016
There is a good reason why the words IRS audit strike dread in the hearts of every taxpayer. Audits can have a profound financial impact and it can take a very long time (and a lot of effort) to satisfy the IRS and get the investigation to stop.
In a worst case scenario, the audit can end with significant penalties and could even result in criminal prosecution. If you are concerned with what the IRS may find in an audit, a criminal tax in Maryland lawyer can provide you with advice and assistance throughout the audit process. Do not wait to get legal help, as there are plenty of reasons why an audit should be feared.
10 Reasons to Be Concerned About an IRS Audit
Whether your business is audited or your personal return comes under investigation, an audit can affect you for a long time and can impact you in many significant ways. Ten of the top reasons why you should be concerned if you're the subject of an audit include:
- The risk of a bank account levy. The IRS can put a tax lien on your account and access money directly, preventing you from using your own cash.
- An audit can go back six years. While the standard rule for going back and auditing taxpayers is three years, a number of exemptions allow the IRS to go back further. For example, if the IRS believes you omitted 25 percent of your income or more, the agency can go back six years. If you didn't file certain forms, you could actually be audited at any time in the future.
- The IRS expects to be able to examine detailed records. You need to be able to provide proof supporting your deductions and provide the IRS with many other financial records upon request.
- One audit can prompt another to occur. If you have to meet face to face with an auditor, things that you say in the interview could end up leading to more of your tax returns being audited. For example, if you comment you had previously taken a deduction without problems, the IRS could decide to look into your past returns.
- Audits can take years (and thousands of dollars) to resolve. Many people end up spending substantial amounts of money to try to deal with the IRS investigation.
- The IRS treats you as guilty until you are proven innocent. If the IRS believes you did something wrong on your tax return, you'll have to pay unless you can prove innocence.
- The IRS applies interest and penalties. If it turns out you owe money, the interest and fees that the IRS tacks on can substantially increase your debt amount.
- The IRS can take your paycheck and retirement money. The IRS can garnish your wages and take cash out of your paycheck before you even access it. The IRS can also levy life insurance policies, retirement accounts, rental income and other sources of funds.
- The IRS can take any items of value. If an audit shows that you owe the IRS money, they can take your house, cars and other items you own and sell these things to try to satisfy your debt.
- You could be imprisoned. Large fines and jail time are possible if the IRS suspects fraud.
That said, you need to get the right legal help to avoid the serious consequences of an audit. Contact Kevin Thorn, a Maryland criminal tax lawyer, for assistance today.Share This Post