Few things strike fear into the hearts of taxpayers like receiving a notice from the IRS announcing an audit. Whether it’s a correspondence audit or a full-blown field examination, the stakes are high—and the consequences of mishandling the process can be severe. While some may be tempted to go it alone or rely on their accountant, hiring an experienced, knowledgeable tax attorney can make all the difference.
In this post, we’ll explore why legal representation matters, what a tax attorney brings to the table, and how they can protect your finances, your rights, and your peace of mind.
The Reality of an IRS Audit
An audit isn’t just a routine exercise—it’s a legal inquiry into your financial life. The IRS is looking for discrepancies, errors, or signs of fraud in your tax reporting. Even if you’ve done nothing wrong, the process can be invasive, confusing, and time-consuming.
Audits can result in:
Additional taxes owed
Penalties and interest
Loss of deductions or credits
Referral to the IRS Criminal Investigation Division in extreme cases
The IRS has vast resources and legal authority. You need someone in your corner who understands how to navigate their system—and push back when necessary.
Why a Tax Attorney Is Different
Many people assume their CPA or enrolled agent can handle an audit. While these professionals are valuable, they’re not trained in legal defense. A tax attorney is uniquely qualified to represent you in adversarial proceedings with the IRS.
Legal Expertise
Tax attorneys are licensed lawyers with deep knowledge of federal tax law, IRS procedures, and court systems. They understand the nuances of:
The Internal Revenue Code
Treasury Regulations
Case law and legal precedent
Constitutional protections for taxpayers
This legal foundation allows them to craft sophisticated defenses and challenge IRS findings when appropriate.
Attorney–Client Privilege
Unlike CPAs or enrolled agents, communications with a tax attorney are protected by attorney-client privilege. This means:
You can speak freely without fear your words will be used against you
Your attorney cannot be compelled to testify about your case
This protection is especially critical if your audit involves sensitive issues or potential criminal exposure.
Strategic Negotiation
Experienced tax attorneys know how to negotiate with IRS agents, appeals officers, and Department of Justice attorneys. They can:
Present your case in the most favorable light
Negotiate settlements or penalty abatements
Escalate your case to IRS Appeals or U.S. Tax Court when needed
They understand the psychology and procedures of IRS personnel—and how to leverage that knowledge to your advantage.
This is especially true at Gregory Law Group, PLLC, where all of our attorneys are former IRS attorneys.
Protecting Your Rights
The IRS is powerful, but you have rights. A tax attorney ensures those rights are respected throughout the audit process.
Key protections include:
The right to professional and courteous treatment
The right to privacy and confidentiality
The right to appeal IRS decisions
The right to retain representation
Without legal counsel, you may not even know when your rights are being violated. A tax attorney acts as your shield, preventing overreach and ensuring due process.
Avoiding Costly Mistakes
Audits are complex, and even innocent missteps can lead to serious consequences. Common mistakes include:
Providing too much information
Volunteering documents or details not requested
Making inconsistent statements
Failing to respond on time
Trying to “explain away” errors without guidance
A tax attorney controls the flow of information, prepares you for interviews, and ensures every response is legally sound.
When the Numbers Don’t Add Up
Sometimes audits uncover genuine mistakes—underreported income, misclassified expenses, or missing documentation. A tax attorney can:
Reconstruct records
Present mitigating evidence
Argue for reasonable cause to reduce penalties
They can also coordinate with forensic accountants or valuation experts if needed. Their goal is not just to defend you but to resolve the audit in the least damaging way possible.
If Things Escalate
If your audit leads to a proposed assessment you disagree with, you have options:
IRS Appeals: A formal process to challenge IRS findings
Tax Court: A judicial venue to litigate your case
Navigating these paths requires legal skill. A tax attorney can file petitions, prepare legal briefs, and advocate before judges and appeals officers. They understand the rules of evidence and procedure—and how to build a compelling case.
Real-World Scenarios That Cause IRS Audits
Self-Employed Individuals
High likelihood of underreported income or overstated business expenses.
Small Businesses
Complex issues with limited budgets often lead the IRS to audit small businesses more frequently.
Foreign Accounts
Foreign financial interests require specific reporting. If missed, penalties can be substantial.
Choosing the Right Tax Attorney
Not all attorneys are created equal. Look for someone who:
Specializes in IRS audits and tax controversy
Has experience with cases similar to yours
Is licensed and in good standing
Offers transparent fees and communication
Ask about their success rate, audit strategy, and whether they handle cases at IRS Appeals or in Tax Court.
Final Thoughts
An IRS audit is not a DIY project. The risks are too high and the rules too complex. Hiring an experienced, knowledgeable tax attorney is an investment in your financial future—and your peace of mind.
They don’t just defend you—they guide you, protect you, and fight for the best possible outcome. Whether your audit is routine or high-stakes, legal representation can mean the difference between a manageable resolution and a financial disaster.
Call the former IRS attorneys at Gregory Law Group for a free consultation to discuss your situation.
