New York Tax Audits and Their Aftermath

Tax papers and moneyIf you are an employee who receives a salary from your employer for your labor, you are subject to paying taxes and subject to tax audits.

A tax audit is the process where the IRS or some other state taxing agency reviews your tax return to determine whether the return depicted income, expenses and credits accurately.

The audit generally begins with a letter.  It may also begin with a phone call or other type of notice.  The notification may also include the specific records you will need to produce, as well as a request for an appointment.  You may also receive a list of records you will need to produce and a request for an appointment.

The IRS wants to verify that you have reported each source and amount of your income properly, and that you have ultimately paid the correct tax.  The IRS also wants proof of payments in the form of receipts or other verifications.  If any income or expense remains unsubstantiated due to your inability to provide sufficient document proof, the IRS would adjust the tax return to reflect this, which will result in a balance due, interest, and possibly a penalty fine.

Whether you are an individual or a business being audited, it is important to protect your legal rights.  You have the right to appeal an audit finding.  If you choose to do so, you should contact an experienced New York tax attorney.

The IRS tends to impose strict deadlines throughout the process.  An attorney can ensure you stay on track and meet all the IRS imposed requirements.

Tax litigation is also very complicated and different than general litigation.  The Tax Code is very dense.  If you are involved in tax litigation with a tax collection agency, it is extremely important to engage an attorney who is well versed in the tax laws, knows how to navigate the process, protect your legal rights and avoid unnecessary risks and liabilities.