IRS Audit

Swaim & Associates specializes in advising on complex IRS Audits. We help clients facing IRS audits, enforced collections, seizures, liens, levies and wage garnishment, and more.

What Can Trigger An IRS Audit

Audits come about usually because your return triggered some flags in their system that caused the return to be marked for audit. There are many reasons why your return might be selected for audit, including:

• High charity contributions when compared to the average donation in your income group
• Expensive business costs, like travel, meals, entertainment and mileage for your field of business
• Significant expenses compared to your gross reported income
• Tax returns with minimal income and major deductions

Audits are about just a couple of things: verifying your income and making sure that you reported all of your income, proving your deductions by making sure that you spent the money you say you spent on business expenses, and if you did spend it, does the expenditure qualify under the law as being deductible.

How To Behave When Talking To The IRS

NEVER talk to the IRS. This will not help you. They are trained interrogators and have undergone IRS in-house training on how to solicit information from you that they have no right to. Not knowing the law, you may innocently say something that could be misconstrued or misinterpreted, and they will use that against you. You have a 5^th Amendment Right to remain silent and not talk to them or answer their questions. If the IRS contacts you in person or by phone, be polite and just say that you will have your representative contact them. Get their name, employee i.d. number, phone, fax, office address, and their manager’s name and phone number. Tell them that your representative will contact them to discuss the matter. Say no more than that.

Let Us Communicate On Your Behalf

If you are being audited, you will receive a formal letter notifying you and asking you to call them to confirm the appointment they have set up for you. Please don’t do it. You NEVER want to talk to them because once they have you alone on the phone, they will ask you for information that will be incriminating and detrimental to your case.

The taxpayer is required to provide vast amounts of documentation to the auditor, such as banks statements, credit card statements, receipts, invoices, real estate closing statements, purchase contracts, mileage logs, books and records, ledgers, journals, financial statements, copies of loan applications, and the list goes on. They generally ask for “everything but the kitchen sink.” Please do not give them anything. Please give it to your representative to give to them. The representative must review it first to ensure they really need it and are legally entitled to it. Your representative may not provide it to them if they are not allowed to do it by law or if it might incriminate you. Our IRS tax representation services ensure you take the best approach for dealing with the IRS.

We Are Here To Protect Your Best Interests Against An IRS Audit

Remember, “He who defends himself has a fool for a client.” Always have a licensed tax professional represent you and speak for you. The average citizen knows next to nothing about the current tax laws. This lack of legal knowledge is dangerous if you try to defend yourself.

If you receive a letter from the IRS informing you that your tax return will be audited, call us at (336) 433-9997.