Most people, when they receive a letter from the IRS, get panicked. People worry about the IRS sending them an audit letter all the time. However, in most cases, the IRS won’t send you an audit letter if you have filed your tax returns correctly. Dorothy Lawrence, an expert in the field of taxation and auditing, believes that the fear of the IRS is often exaggerated. Dorothy is the CEO of her own law firm, the Dorothy Butler Law Firm, and has complete command over all tax and audits related issues. There are mainly three things that you need to understand in this regard, says Dorothy:
- Understanding how you are being audited
- Understanding the proper way of responding to an IRS audit letter
- Understanding the consequences of not properly responding to an IRS audit letter
Dorothy believes that in most cases, the IRS will send you an audit letter if there is a problem with your tax returns. She believes the IRS specifically states what the issue is in the letter. For example, it may state that income was not reported, a credit was incorrectly applied, or simply that there is interest due from late payment of taxes. Her golden suggestion is to read the entire letter very carefully and not miss any information. If the letter is complicated, you must seek professional help from expert lawyers such as Dorothy.
In Dorothy’s experience, many people do not know how to respond properly to an IRS audit letter. They often do it in a rush and make things more complicated for themselves than they otherwise should be. In her opinion, you must always remember the following things while responding to an IRS audit letter:
- Read it Carefully
Reading the letter carefully and thoroughly is the key. As already stated, the letter will contain information on how to respond to it.
- Do Not Request a Tax Court Date
Often times Dorothy has to cancel the court date, and the clients incur fees from the IRS for scheduling that court date. She strictly advises people not to request a tax court date unless they have properly discussed it with a lawyer. In many cases, a professional lawyer will simply call the IRS and settle the issue over the phone. That’s why you need not rush.
- Consult a Tax Professional
It is better to have a tax professional on your side. This is especially recommended in cases where the IRS letter is too complicated for you to understand.
It is very important to get your response right. Dorothy says that you may face penalties and interest if you fail to respond properly to the IRS audit letter. The IRS may also levy your bank account or garnish your wages. Remember, she says, you cannot avoid it forever. The IRS has ways of getting the amount you owe them. It may be the case that you don’t owe them anything, in which case, you need to contact a professional.
If you need any help with auditing or other tax-related issues, the Dorothy Butler Law Firm is available for help round the clock. You can contact Dorothy’s firm and send them a copy of the letter. Once received, the firm will assess the basic situation and get a Power of Attorney Form 2848 which will allow them to talk to the IRS on your behalf and discuss with the IRS. Sometimes the solution to your problem would be to simply file an amended tax return. In other cases, the solution may be to give the IRS proof of whatever expense you claimed on your return. The Dorothy Butler Law Firm starts by charging an extremely reasonable flat fee to contact the IRS, get an overview of the account, and then make recommendations on how we move forward to clear up the issue. Dorothy works with individuals across the country, helping them with myriads of tax-related issues.