Audits Lawyers in St. Louis Protecting Your Rights as a Taxpayer

Being audited on your state or federal tax returns can be a very stressful and time-consuming experience. Gathering your paperwork, negotiating with state or federal representatives, and paying fines and penalties all take time and money away from you or your business. Unfortunately, an unfavorable determination after an audit could lead to increased tax liability or even the risk of civil or criminal prosecution.

At The Law Firm of Lance R. Drury, P.C., we believe that every taxpayer should have an attorney on their side in the case of an audit. Our experienced legal team can advocate for your rights and represent you in front of the Internal Revenue Service (IRS) or your state government. We will help you negotiate with tax bureaus and reduce or even remove penalties you must pay. For a free consultation and to learn more about our services, call us at 866-828-5506.

What Are Common Issues That Lead to Audits?

Depending on your specific tax situation, several different issues could have led to your taxes being audited. Typically, the federal or state government will audit your tax returns if they deviate from the norm or if you have dealings or transactions with other parties who are also being audited.

Listed below are some of the common reasons why taxpayers get audited:

Miscacluation of Tax Liability

Your tax liability is how much you owe in taxes at the end of the year. If you miscalculated this number, you likely needed to pay more taxes. Therefore, the IRS or your state government will audit you to see how much you actually owe.

Failure to File All Necessary Forms

While some taxpayers are only required to submit a single tax form, many taxpayers are required to file additional documents. Leaving them out of your tax returns can trigger an audit even if you did not know about these forms or simply forgot about them.

Business or Employment Tax Violations

Businesses and entities with employees must fill out business tax and additional forms. Failure to do so can result in an audit, leading to fines and penalties.

Cryptocurrency-Related Violations

Although cryptocurrency is all online, taxpayers must still report any income from it. The IRS, in particular, treats cryptocurrency-related violations as a top priority, and taxpayers who do not report their total income may be subject to fines and penalties.

Failure to Report Offshore Assets

Even if you are storing assets offshore, U.S. citizens are required to report any and all income. Not reporting offshore assets can lead to criminal consequences as well as tax audits.

Failure to Report Foreign Income

Any income that a taxpayer receives must be reported on tax returns. If you do not report foreign income, the federal or state government may audit you to ensure you fulfill your tax obligations.

What Are Some Potential Outcomes of an Audit?

The potential outcome of your audit depends on why you’re being audited in the first place and how much money the IRS or state government determines that you owe. However, there are some common outcomes that our tax attorneys see often.

These outcomes may include:

No additional tax liability: With an audit lawyer on your side, you can negotiate with the IRS or your state and prove that your taxes have been paid in full. After that, you will receive no additional liability, meaning that you do not owe anything further.
Offer in compromise: If the IRS finds that you owe further payment, our team can negotiate and offer to settle for less than you owe.
Installment agreement: Depending on how much you owe, you can sign up for a payment plan to repay your debt over time.
Civil liabilities for tax, penalties, and interest: If the IRS is unwilling to negotiate, they may request that you pay back what you owe in full. At this point, our team can submit an appeal on your behalf.
Civil or criminal investigation: If the audit shows that you may have committed tax fraud, it may be escalated to a civil or criminal investigation.

What Evidence May Lead to a Criminal Investigation?

During your audit, the state government or the IRS may also look for evidence of tax fraud or tax evasion. This evidence can lead to legal proceedings that can be time-consuming and costly.

Evidence that may lead to a criminal investigation includes:

Legal source tax crimes: underpayment of taxes owed on income obtained legally.
Illegal source financial crimes: prohibited activities that produce income, like racketeering.
Counterterrorism financial crimes: illicit financial practices related to counterterrorism.
Narcotics-related financial crimes: behavior related to the sale and distribution of narcotics.

If you are under criminal investigation, don’t hesitate to reach out to a professional. Our team can review your case and advise you on the best course of action for your unique situation.

Should I Hire an Audit Lawyer?

Being audited is a very stressful experience, especially if you are accused of tax fraud or tax evasion. Having a professional audit lawyer on your side is the best way to protect your rights and defend yourself against fines, penalties, and hefty fees. No matter your unique tax situation, our team is here to help you.

Whether you’re being audited on your tax returns by the IRS or your state government, don’t go through this difficult process alone. Our team of experienced audit attorneys would happily help negotiate on your behalf. For a free case evaluation and to learn more about us, call The Law Firm of Lance R. Drury, P.C. today at (314)-260-6120 .