Tax Audits

Tax audits can be overwhelming, stressful and intimidating. Sometimes, taxpayers may even choose to ignore the audit, thinking that the tax auditor will “go away” if they simply pay the assessment. Some people believe that hiring an attorney will make them look guilty. Both are incorrect.

First, the tax auditor will often view an audit acceptance as an indicator that there are greater problems and will audit other years or items on the tax return. Second, tax auditors often welcome an attorney’s assistance because it can make for a much smoother process. When approaching an audit, it is helpful to keep in mind that tax auditors just want to do the job correctly and as easily as possible. Additionally, the process routinely includes questioning by a tax examiner, collecting information from many time periods and sources and paying even higher tax liabilities. Some people may even face criminal indictment. For all these situations, it is much better to have an experienced attorney on your side.

Hone Maxwell LLP tax attorneys have experience working with various auditors and a host of unique tax audit circumstances. HMLLP attorneys know how to respond to audit inquiries in ways that preserve the client’s rights. The team thinks creatively about justifications for the positions taken in tax filings and identifies documentation that will support the client’s position.

Many people try to represent themselves in tax audits, but going against specially trained tax auditors often leads to unfavorable outcomes and serious repercussions, including further investigation, greater liability and criminal charges. Experienced tax attorneys, compared to tax preparers, bring knowledge about the audit process. In tax audits, preparers are often put in the uncomfortable and dangerous position of defending their work.

HMLLP attorneys explain any issues that may arise and timely assert various legal defenses to help limit or prevent inappropriate audit assessments. The team has the necessary accounting and legal skills that are essential to an effective audit.

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