Seattle Tax Attorneys Helping With IRS Audits

If you have received a notice that you are being audited, the last thing you should do is meet with the IRS, state, county or city tax authorities without the advice and guidance of a knowledgeable tax attorney.

Auditors are trained investigators with a detailed understanding of tax law. Most individuals and business owners do not have the same experience in tax law, putting them at a disadvantage in dealings with the IRS. At Insight Law, you will find Seattle tax audit attorneys who focus almost exclusively on tax law, providing you with a comprehensive understanding of federal and state tax law.

Our Seattle Tax Audit Attorneys Can Assist with All Types of Examinations

The IRS may audit your taxes in three ways.

• Correspondence examinations: These are the most common audits. They are conducted by mail and may involve a few issues that you can resolve through producing the right documents and information for the IRS.
• Office examinations: These audits involve more complicated fact issues than in correspondence examination. A tax compliance officer will generally conduct an interview with the taxpayer or taxpayer’s representative.
• Field examinations: These are conducted by revenue agents who review a taxpayer’s books and records and interview either the taxpayer or the taxpayer’s representative. Field examinations are usually conducted for businesses, and agents usually conduct the audit at the place of business.

State and Local Business Tax Audit? Let Us Help.

Typically, an IRS audit is the only type of audit that individual taxpayers may encounter because the state of Washington does not assess income taxes. Business owners, however, may be audited by the state, county or municipality regarding:

• Business and occupation taxes (B and O taxes)
• Sales and use taxes

Our tax lawyers are intimately familiar with tax law and business and corporate tax issues and understand every step of both the state and IRS processes. We will explain all of your rights to ensure that you do not make any moves that could cause the scope of the audit to grow. If you are unable to resolve the issue during the audit stage, we have the experience to represent you in tax litigation.

Frequently Asked Questions About Tax Audits

Those facing tax audits often have urgent questions about the process and their rights. Here are answers to some of the most common concerns we address:

What should I do if I disagree with the results of my tax audit?

If you disagree with the audit findings, you have several appeal options available before the matter escalates to litigation:

• Request an independent review through the IRS Appeals Office for an impartial evaluation
• Present additional documentation, legal arguments and evidence supporting your position
• Pursue judicial remedies, including a U.S. Tax Court petition or a federal district court refund suit if appeals are unsuccessful

It is crucial to act quickly when you receive audit results, as there are strict deadlines for filing appeals. Our tax attorneys can evaluate your case and represent you throughout the process.

How long does the typical audit process take from start to finish?

The duration of tax audits varies significantly depending on the type of examination:

• Correspondence audits: Two to six months, conducted by mail, focusing on specific items
• Office examinations: Three to six months, involving interviews with tax compliance officers
• Field examinations: Six months to over a year for complex business situations with on-site reviews

Several factors can affect the timeline, including taxpayer responsiveness, issue complexity, documentation availability and whether disagreements arise requiring additional review.

Are there any penalties or consequences if I ignore an audit notice?

Ignoring an audit notice can result in severe financial consequences and legal complications. The IRS will proceed with the audit based solely on available information, typically resulting in the highest possible tax assessment against you. This often includes additional taxes, substantial penalties and interest charges that continue to accrue.

The IRS may also impose failure-to-cooperate penalties and pursue collection actions, including wage garnishment, bank levies and property seizure. Additionally, ignoring audit notices can trigger criminal investigations in cases involving suspected fraud or willful tax evasion.

What steps can I take to prepare for an audit if I have complex business finances?

Preparation for business audits requires organizing comprehensive financial records and documentation:

• Gather all supporting documentation for income, expenses, deductions and credits claimed on tax returns
• Collect bank statements, receipts, invoices, contracts and other relevant business documents
• Review financial records for completeness and accuracy before the audit begins
• Consider professional representation to identify potential issues and develop effective presentation strategies

Our experienced tax attorneys can help you prepare by reviewing your records, identifying potential issues and developing strategies to present your case effectively to auditors while protecting your rights throughout the process.

Contact Us for a Free Consultation

From offices in Seattle, Bellevue and Burien, our lawyers advise and represent clients in communities throughout King County, Pierce County and Snohomish County, Washington. Call us at 206-922-8078 or contact our office by e-mail to arrange an initial consultation with an experienced Tax Lawyer at our firm today.