Will an Audit Lead to Tax Evasion Charges?

If you have received a notice that you are being audited by the Internal Revenue Service, or the I.R.S., you may be worried. It is common to be worried when you receive a notice from the I.R.S., especially if you do not know what is going on. However, if you know, or have reason to suspect, that your tax returns are not done correctly, you may find yourself wondering if an audit will lead to tax evasion charges. This may leave you wondering if you need to hire an Atlanta tax lawyer, how a tax attorney IRS can help you, and when the best time to hire one may be. Here is the information you need to know.

What An Audit Is

An audit is designed to keep taxpayers honest and to catch problems or issues with tax returns. If people submitted their taxes and knew no one would ever look at them again, there would be no incentive to be honest. Tax audits are also done as a way for the I.R.S. to see what is going on with people’s taxes and see if they are missing major issues. As such, audits can be done for two reasons. First, the I.R.S system may flag a tax return that doesn’t seem correct. Second, a tax return may be chosen at random to be audited. Unfortunately, you have no idea whether yours was flagged or picked at random.

What Happens In an Audit

During an audit, the I.R.S. essentially looks at your tax return. The computer system will then pull any documentation it may have, such as employers who submitted W-2s on you. They will ensure the information on your return matches what is in the system. They may then ask questions about deductions you took, income you collected and write-offs you may have claimed. It is essentially a time for them to question your tax return. You are legally allowed to have tax law firms present and representing you at tax audits and audit hearings.

Will an Audit Lead to Tax Evasion Charges?

It is very rare that a tax audit will lead to tax evasion charges. However, if you are evading paying your taxes, this is the type of hearing where that can be revealed. From there, the case may be presented to a criminal division for investigation and prosecution. It is important to note that the I.R.S. is never going to arrest you at an audit, as they do not have the authority to do so. Your case will go to a criminal investigation unit. If you are being audited and you are concerned about tax evasion, it is best to discuss the specifics of your case with a tax attorney in Atlanta prior to the audit.

How a Lawyer Can Help

If you are being audited, it is recommended that you speak with an Atlanta tax law firm prior to the audit. The tax firm can look at your taxes, listen to your concerns or wrongdoings, and work to find a way out of the trouble you are in before or during the audit. In some cases, agreeing to pay the penalty and fine associated with making mistakes on a tax return may get you out of trouble. If your case is being prosecuted, a Georgia tax attorney can help you throughout the trial, including coming up with possible defenses, working to come up with a possible plea deal or fighting the charges you are facing.

Here at the Law Office of Max Benkel, we know that getting an I.R.S. audit notice can be intimidating or nerve-wracking. Fortunately, most people have nothing to worry about when they receive such notice. However, if you are worried about the notice or know that you have falsified tax returns, working with a lawyer as early as possible in the audit process is advised. Reach out to us today to learn more about how we can help you.

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