What Happens After An IRS Audit?

What Happens After An IRS Audit?

Irs-tax-audit-cartoon-598We all know that an audit is an emotional rollercoaster. It would not be farfetched to experience feelings of dread and anxiety at various intervals during the process, which could last many months and even years. Most of these emotions, although well founded, could be much alleviated if people were more informed as to what to expect.

The best way to get to this happier place is with audit legal representation. An expert attorney would not only help you navigate through all the steps, but also would aid in the elimination of typical and avoidable pitfalls that you are bound to encounter. In fact, our attorneys at Dallo Law Group could attend the audit on your behalf, eliminating your apprehension and knowing that you have the best possible team representing you.

Once The Process Is Over

You may think that once your audit has been finalized, you are now in the clear. However, this assumption may be the furthest from reality. In many ways, there are whole arrays of new complications that can arise after an IRS audit has been completed.

Typically, at the point the audit ends, you can soon expect Form 4549 to arrive to your mailbox.   This document will show the findings of your audit and your tax liability.  One of these three scenarios can be stated in the form:

  1. The adjustments that were made with explanations
  2. A statement saying that no adjustments were made – you have no further obligation
  3. Changes in your tax liability along with your new tax liability, likely with penalties and interest charges

At this point you can choose to accept these changes or disagree. If you accept, then you must sign Form 870: Consent to Proposed Tax Adjustment. Once you send that document back to the IRS with your agreement, you are responsible for generating the

funds to satisfy your tax deficiencies, which might entail negotiating an IRS payment plan.

On the other hand, if you disagree with the audit findings, you have the option of further pursuing your argument, which must be done within 30 days, by choosing one of the following steps:

  • Furnish the IRS with more information for further consideration
  • Ask for a discussion on the audit findings with either the examiner or manager of your case in order to garner more details

If these actions still do not lead you to an outcome you are partial to, you may request an audit appeal. Once again, you only have 30 days to file the appeal; otherwise the IRS’s findings will become final.

When Balances Are Due

Rest assured, if after all is said and done in regards to the audit, the IRS wants its money and in good time. The collection notices will be arriving to your mailbox in regular time frames. They will have headers that read “Balance Due,” “Urgent,” and even, “Final Notice of Intent to Levy.” Take these notices seriously because before you know it the IRS can and will seize your assets in order to satisfy the debt.

Generally, if you happen to owe $50,000 to the IRS, a payment plan can easily be worked out with the agency. It can become more complicated if your balance is over this amount and a lien may be involved as part of the collection process.

Most people dread an IRS audit at the onset; however, hurdles can be just as severe for individuals once it is all over. For this reason, it pays to be proactive and hire a seasoned tax attorney. Preparedness is by far your best bet when dealing with IRS matters.

Dallo Law Group has handled a vast number of audits for its clientele. Our lawyers are well acquainted with the process whether it is right at the beginning or at the tail end. We understand the intricacies of audits and tailor or services in order to most favorably represent you with the IRS. The worst things you could do are to ignore the IRS or blindly adhere to demands. Remember, you have rights and we are here to assist you. Contact us at (619) 795-8000.