The fact is, majority, if not all of the Internal Revenue Service (IRS) agents are well- versed on tax audit. In contrast, only few tax payers know about their possible defense against so. Taxpayers must acquire as much knowledge as these IRS agents, know their rights, and know what to do in times of tax audit.
Atlanta, GA -- (SBWIRE) -- 05/07/2014 -- Benjamin Franklin famously wrote that in this world, nothing is certain except death and taxes. In real talk, no one could really win over the trouble of tax charges, not unless one is an informed citizen.
In times of tax audit defense, the more rights the taxpayers assert, the better off they will be. They need to put themselves to secure favorable results from sales tax audit and they must adhere with the following actions.
Be on time on filing and paying taxes. This must be the most conventional way and is always practiced accordingly for early prevention. Most likely, a criminal investigation would commend once taxpayers seem to refuse on paying or not paying the tax due, as well.
Check the mail and make an appropriate reply. Once IRS has asked anyone to provide additional information or chosen for examination, it means a suspicion for criminal proceedings. So, it is a must to make an appropriate response. No response at all heightens the level of inquiry.
Be cooperative during an audit. Being defensive, aggressive or withdrawn are indeed not helpful during an audit. More often, these feedback could make a bad situation worse. The more the taxpayer become uncooperative, the more queries will be put into the tax review.
Avoid inconsistency. Being consistent will not raise concerns or red flags. Information, particularly about tax, may be exchanged across the country by other law enforcement agencies or tax authorities which allow the agents to attest inconsistency of the given information.
Never destroy records. Destroying records ruins one’s life as so can be considered as a crime. IRS agent conducts interviews of third party, perform surveillance, execute warrants, do the subpoenaing bank records and review financial data, which all aim to create an evident ground. Nevertheless, reliable records will serve as strong evidence and eventually defy the accusation.
Never lie. Anyone can get caught in a lie. Lying to federal investigators advances the IRS to win over criminal investigation. As always, this action just makes things worse.
Stay feet on the ground and hire a lawyer if needed. Choosing not to put on any defense is rarely a good strategy once criminal charges are filed. Do not let, though the government to allow someone else to utter hopelessness. Hire a defense lawyer who has experience in tax crimes. This is because of the referrals from special agent which will likely recommend prosecution to Department of Justice or in any other court.
See the fine print and be proactive. Take the legal suit and stand firm. Be thoughtful enough.
Do not let the fact, concerning uninformed tax payers about their defense into tax audit, stay as an old permanent fact. Take actions to catch the best result.
About Interstate Tax Strategies
Interstate Tax Strategies assists their clients by developing technically sound, business specific, and cost effective interstate sales tax consulting solutions. Their mission is to help their business understand and navigate the increasingly complicated interstate sales tax landscape. Don’t assume tax sales processes and procedures are the same in different states. Interstate Tax Strategies evaluates the sales tax in each state where their clients conduct businesses.