What Is an IRS Audit?
An IRS audit is a review of your tax return to verify accuracy and compliance. In Massachusetts, both individuals and businesses may face federal or state-level audits. Audit defense means having experienced counsel guide you through document requests, representation, and appeals to minimize risk and financial exposure.
Common Triggers for an IRS Audit in Massachusetts
- High Income Levels :
Returns reporting unusually large incomes often draw more scrutiny. - Large Deductions :
Excessive charitable gifts, home office deductions, or unreimbursed business expenses can raise red flags. - Mathematical Errors :
Simple calculation mistakes trigger “correspondence audits” by mail. - Unreported Income :
Mismatches between third-party forms (W-2, 1099) and your return almost guarantee an inquiry. - Business Losses :
Repeated losses on Schedule C for sole proprietors may prompt an “office audit” or in-person examination.
Types of IRS Audits
Correspondence Audit
A limited, mail-only review focused on specific line items.
Office Audit
A detailed, in-person meeting at a local IRS office—often involving supporting documentation.
Field Audit
The most intensive: an IRS agent visits your home, place of business, or accountant’s office to examine records.
Preparing for Your Audit Defense
- Organize Your Records :
Gather all receipts, bank statements, ledgers, and third-party forms. - Understand the Scope :
Carefully review the IRS notice to determine which years and line items are under review. - Communicate Strategically :
Only answer questions in writing or through your attorney to avoid unintended admissions. - Document Everything :
Keep detailed notes of phone calls, letters, and meetings with the IRS.
Skilled Representation Strategies
Engage a Massachusetts Tax Attorney
An experienced tax lawyer knows IRS procedures, appeals, and negotiation tactics.
Draft a Power of Attorney (Form 2848)
Authorize your attorney to handle all IRS communications and represent you at conferences.
Negotiate Settlement Options
We can explore Offer in Compromise, installment agreements, or penalty abatements when appropriate.
Appeal Unfavorable Findings
If you disagree with audit results, we file timely appeals to the IRS Office of Appeals or Tax Court.
Timeline & Typical Fees
| Stage | Timing | Fee Structure |
|---|---|---|
| Initial Consultation | 1–2 weeks | Flat fee |
| Document Gathering | 2–4 weeks | Flat or hourly |
| IRS Examination (office) | 1–2 days | Hourly |
| Negotiation & Appeals | 3–6 months | Hourly |
| Offer in Compromise Review | 4–9 months | Flat + contingency |
Note: Fees vary by case complexity. We offer flexible payment plans and will provide a clear engagement letter before work begins.
Frequently Asked Questions
Q: What should I do when I receive an IRS audit notice?
Contact a tax attorney immediately. Preserve all records and avoid direct communication with the IRS without counsel.
Q: Can I handle an audit myself?
You may, but lacking professional experience increases risks of overpayment or penalties.
Q: How long does an IRS audit take?
Correspondence audits can close in 6–12 months; field audits may extend over a year, depending on complexity.
Q: Will the IRS publish my audit results?
No. Audit findings are confidential and not released to the public.
Q: Can penalties be waived?
Yes. Under reasonable cause rules, we can often obtain penalty abatements for first-time errors or disasters.
Q: Do I need an attorney for a state audit?
While Massachusetts Department of Revenue (DOR) audits follow similar rules, having counsel familiar with both IRS and DOR processes is invaluable.
Q: What is an Offer in Compromise?
A formal IRS program allowing you to settle tax debt for less than the full amount, based on inability to pay.
Q: How do I appeal an audit decision?
We file a protest letter or Form 9423 and represent you before the IRS Office of Appeals or Tax Court.