What Exactly Is A Tax Audit? Should I Be Concerned?
Many people are concerned when they see an audit letter. However, a tax audit is just the IRS verifying the information on your tax return. Audits can come up for any number of reasons, whether you are randomly selected, the IRS is using you to do a comparison, or the IRS thinks there might be some kind of error on your return. You should not be concerned about an audit, but it’s important that you find a tax professional right away to help represent you. If you have a simple audit letter, you probably should not look for an attorney because it’s not the most cost-effective way of continuing with the audit process. Most of the time, you are better off looking for an enrolled agent, who can coach you through the audit process and represent you in front of the IRS during the audit.
One of the most important things when you are being audited is to not simply hand over information to the IRS. You want to make sure that the IRS is getting a proper picture of everything, based on the information given to them, and that you carefully choose which information to give them, based on what the law says they are entitled to, not what they want.
At What Stage Does an Audit Turn into A Lien, Levy, Or Collection?
Once you owe the IRS a tax amount and they have confirmed that there is a billable tax burden, they will begin to try to lien and levy against property. There are numerous ways that the IRS can place a lien or a levy. The IRS can place a lien on a piece of property that you own, which is essentially a cloud on the title that has to be cleared before that property can transferred. Or, the IRS can choose to go after the property via a levy. A levy is just taking property. If you have a $100,000 tax debt and you have $500,000 sitting in your bank account, the IRS can just come and take $100,000 one day. Your tax debt is gone and you are without $100,000.
For more information on Tax Audits In The State Of Florida, a free consultation is your next best step. Get the information and legal answers you are seeking by calling (954) 546-7755 today.
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