Facing a tax audit can be one of the most stressful situations for anyone. Whether it’s a personal tax return or a business filing, the stakes feel high, and the process can seem overwhelming. That’s where having the right kind of support makes a difference. An attorney CPA is uniquely equipped to help manage tax audits, offering both financial and legal insights to address the situation effectively.
The Dual Advantage In IRS Audits
Tax audits require a deep understanding of financial records and how they align with tax laws. When someone is both a licensed attorney and a certified public accountant, they have a unique perspective on these matters. This dual qualification allows them to handle audits with a focus on both financial accuracy and legal compliance.
We once worked with a small business owner who received an unexpected audit notice after reporting a significant year of growth. The business had meticulously kept receipts but lacked formal documentation for several deductions. The owner was understandably anxious about potential penalties. An attorney CPA stepped in to organize the records, analyze the audit request, and communicate with the IRS on the business’s behalf. Not only were the deductions successfully defended, but the business also avoided any penalties.
Addressing Documentation Gaps
One of the first challenges in any audit is verifying the information reported on a tax return. This often means providing documents that support income, expenses, and deductions. However, it’s common for individuals and businesses to discover they don’t have all the paperwork the IRS is asking for.
For example, we’ve seen clients who deducted expenses related to travel but couldn’t provide complete logs or receipts. Instead of leaving the client to stress over missing records, an attorney CPA helps evaluate what’s available, identify acceptable alternatives, and frame the response appropriately for the IRS. Their legal background helps clarify which documentation is legally sufficient and how best to present it.
Protecting Your Rights During An Audit
Audits can sometimes become adversarial, especially if the IRS believes there’s a significant issue. In these situations, it’s important to have someone who can act as both a financial interpreter and a legal advocate.
A family we worked with had a situation where the IRS questioned the valuation of a donated property. The family had used an appraisal, but the IRS raised concerns about the methodology. An attorney CPA was able to step in, explain the appraisal’s validity under tax law, and advocate for the family’s position in negotiations. The case was resolved without escalating to litigation, saving both time and additional costs.
Moving Forward After An Audit
Audits aren’t just about resolving issues for the current year—they often lead to changes in how someone handles their taxes in the future. Whether it’s improving recordkeeping practices or reconsidering certain deductions, having a professional who understands both financial and legal considerations provides valuable guidance.
Our friends at Skarin Law Group often emphasize how critical it is to address audit findings thoughtfully to avoid repeat issues. Working with a trusted team during and after the audit process can provide peace of mind and help you stay on the right track moving forward.
If you or your business is facing an audit or if you’d like support preparing for potential challenges, we’re here to help. Let’s work together to protect your financial interests and legal standing. Contact us today to get started.