IRS Audits in Dallas & Addison, TX
Does the term "IRS audit" put Fear into You?
Few things conjure up more pain, suffering, and discomfort than the idea of having the IRS digging through all of your records for past years that you can barely even remember.
Perhaps the most terrifying phrase in the English language is “IRS audit”. Few things conjure up more pain, suffering, and discomfort than the idea of having the IRS digging through all of your records for past years that you can barely even remember. As a former IRS tax attorney currently with my own private practice, Gregory Law Group, PLLC, I have worked on IRS audits from both sides of the table. In an effort to ease some of the anxiety, I will discuss some of the basics about IRS audits in this post.
Technically, an IRS audit is a review/examination of an individual or organization’s financial information to ensure their tax returns’ accuracy and compliance with U.S. tax laws.
An IRS Audit Attorney for Dallas and Addison, TX
An audit notice raises immediate questions: What does the IRS want, which records matter, and how should you respond? Gregory Law Group, PLLC helps individuals and businesses understand the examination and prepare a response supported by their records. Working with a former IRS audit attorney brings familiarity with the agency’s review process and the legal issues that can influence an examination.
There Are Typically Three Ways That You Can Be Selected For An IRS Audit:
- Random selection and computer screening
- Document matching (for example, your return information doesn’t match up with the W-2 your employer sent you)
- Related examinations (one of your business partners or someone you entered into a transaction with is audited)
There are several ways an audit can be conducted by the Internal Revenue Service. For example, an audit may be conducted through the mail (most common) or through in-person interviews and reviews of your records. In-person audits can take place at your home, business location, or your tax professional’s place of business.
Document matching can also produce a proposed adjustment notice that is not a formal audit. We identify the actual notice type before recommending a response.
The IRS begins an audit by mail. Your IRS audit letter should identify the return under review, requested information, and response instructions. Do not treat an unexpected call or email as proof of an audit; verify the communication through official IRS contact information before sharing personal or financial details.
Understanding the Type of Examination
A correspondence audit addresses questions through written exchanges, often involving specific deductions, income, or credits.
An office audit involves an appointment at an IRS office to discuss selected issues and examine supporting documents.
A field audit generally involves a broader examination at a business, home, or representative’s office, depending on the circumstances.
The format affects preparation, but every examination deserves careful attention. An IRS audit defense attorney can help distinguish the records needed to answer the inquiry from unrelated material that does not address the questions presented.
What Should You Remember During An Audit?
The 3 key things to remember during an audit are to remain calm, don’t ignore the problem, and get a competent professional to represent you. As a former IRS tax attorney, I have seen many people try to handle their own audits to their own detriment. When seeking a tax attorney, make sure that they practice exclusively in the tax field and have experience representing individuals and small businesses before the IRS.
Practical IRS Audit Representation
Our work begins with the notice, the filed return, and the documents supporting the items being examined. A tax audit attorney can review an Information Document Request (IDR), clarify its scope with the revenue agent, and organize a complete, accurate response. Where authorized, Form 2848 (power of attorney) allows counsel to offer IRS audit representation for the specified tax matters and periods. We explain the issues in plain language so you understand what your response should address.
Preserve original records and tell your attorney when information is missing. Do not invent receipts or guess at explanations. Identifying gaps early allows time to consider reliable supporting evidence and appropriate responses. We can also discuss interview preparation and whether a request for additional response time is appropriate.
Support for Business Owners
Small business and self-employed audits may involve the relationship between bank deposits, reported revenue, payroll, and claimed expenses. A transfer between accounts, for example, should be distinguished from customer income with supporting records. Mixed personal and business spending can require additional explanation. Our review focuses on connecting the reported figures to the underlying transactions, helping you address questions clearly while continuing to manage your business.
Organizing Records Before You Respond
Separate the requested records by tax year and by the item questioned. For a business expense, retain the invoice, proof of payment, and information showing its business purpose. A bank withdrawal alone may not explain what was purchased. If a document uses an unfamiliar description or reflects several transactions, flag that issue for discussion before sending your response.
Keep copies of what you submit and a record of delivery. Share later correspondence with your representative so a follow-up request does not go unanswered. If the examiner proposes a change, ask how it affects tax, penalties, and any related years. Understanding the reasoning behind a proposed adjustment makes it easier to decide whether additional evidence is needed or whether a disputed legal issue requires further review.
Reviewing Findings and Available Options
Before agreeing to an examination report (Form 4549), understand each proposed adjustment and its effect. If you disagree, the IRS Office of Appeals, formally the Independent Office of Appeals, may provide an administrative review. A notice of deficiency (90-day letter) generally allows 90 days to petition the U.S. Tax Court; certain notices addressed outside the United States allow 150 days. Verify the applicable deadline promptly. Ongoing discussions with the IRS do not automatically extend it.
After an assessment, audit reconsideration may be appropriate in qualifying cases involving information the IRS did not consider. It does not replace a timely court petition. We evaluate the procedural stage before recommending the next step.
An IRS Audit Lawyer Dallas Taxpayers Can Contact
If you need an IRS audit lawyer in Dallas or Addison, contact Gregory Law Group, PLLC to discuss your notice and available next steps. Bring the notice and relevant returns to your consultation so our IRS audit attorneys can help review the issues with you.
We are here to Help You!
