Receiving an IRS audit notice is an unsettling experience. Whether you have an inclination that the notice was coming or it caught you off guard, the hardest part is often the uncertainty of what happens next. You may be unsure of the best way to respond, worry about additional penalties and charges, or wonder who can help. 

If you’re concerned about an IRS audit, you’re in the right place – and we can help. 

At Seattle Legal Services, we represent both individuals and businesses through every stage of the audit process. We take over with IRS communication, manage the documents, and work on your behalf towards the best possible solution. Contact us today to set up a consultation or learn more about our other resolution services. 

Audit Situations We Commonly Handle 

IRS audits come in different forms depending on your situation, and each carries its own risks and guidelines. Our tax audit representation lawyers represent clients in: 

Audits without proper documentation 

If your records are incomplete, lost, or poorly kept, there are strategies we can use to reconstruct them. We’ll help you prepare a solid defense even if you’re audited without receipts. 

Failed or disputed audit results

If the IRS proposes changes that you don’t agree with, you have the legal right to challenge their findings. We support clients in handling failed tax audits – whether that means seeking reconsideration, filing an appeal, or seeking penalty relief and debt resolution. 

ERC audits and related penalties

Employee Retention Credit (ERC) claims can draw significant IRS scrutiny. These types of audits are technical and often high-stakes, which is why they need careful handling from a professional experienced with audits of ERC credits. 

IRS summons and formal document demands

A formal document demand means the IRS is treating the matter very seriously. Auditors may also use an IRS summons to demand documents. We help you understand your rights.

Complex or multi-year audits

Should the IRS expand its review to cover multiple tax years, it can involve significant documentation requirements and a high risk of penalties. Our tax audit lawyer makes the process manageable.

Audits of high-income taxpayers

Substantiating deductions, backing up asset valuations for charitable donations, and proving basis on investment sales can make audits for high-income taxpayers especially complex. Let our experience guide the way. 

Business 

These audits typically carry greater exposure and demand a more strategic approach. With the help of a tax audit representation lawyer, you can identify the most effective route forward – whether you’re dealing with payroll, corporate, sales tax audits, or any other business tax audits.

IRS Audits – Why the Stakes Are High

Most audits begin as a targeted review of one return or a specific issue, but they have the potential to escalate as the IRS expands its investigation. If the auditor finds a discrepancy in one year’s return, they may audit additional years. One flagged deduction can lead to a wider investigation of your financial records.

Our team understands the audit process and will help you limit your risks. 

How IRS Audits Escalate – And Why Representation is Critical

What most people don’t realize is that the IRS has the authority to expand an audit when they identify certain irregularities. That means a simple document request can quickly become a multi-year review. You may end up facing increased liability, accuracy-related penalties, or even civil fraud penalties. 

Audit defense isn’t just about providing the right documents to the IRS. It’s also about leveraging the tax code to back up the positions you took on your return, making sure the auditor respects your rights, and ensuring there aren’t any IRS errors during the process. 

The Risks of Going Through an Audit Alone

While you can represent yourself during a tax audit, this can leave you open to avoidable mistakes. Our representation will help you avoid common errors, including:

Over-disclosing information

When responding to the IRS without the help of a tax audit lawyer, many taxpayers provide more information than they legally need to. This gives auditors more documentation to work with, which can lead to new lines of inquiry. 

Missing deadlines

The IRS has a strict set of deadlines and response windows. If you fail to respond in time, it can lead to automatic assessment or even forfeiting your right to challenge the agency’s findings.

Weak documentation

When it comes to providing records, you need a coherent presentation strategy. Without that, the IRS may fill in any gaps in your documentation in its favour. 

Agreeing to unfavorable outcomes

Many taxpayers are not clear on their rights and act out of fear. If you don’t understand what the IRS is actually entitled to, you may accept adjustments that you could have challenged. 

Escalation into collections

If your tax audit is managed poorly, it could move through adjustment, assessment, and into collection action faster than you expect. 

The IRS auditors are experienced – you need experienced representation on your side of the table. Our team can provide that. 

How Seattle Legal Services Handles IRS Audits

Our team offers IRS audit help in Seattle using a structured process that’s helped us defend many clients successfully. Here’s what you can expect:

• Engagement and relief: We review your audit notice and immediately take over communication with the agency. That means you no longer have to deal with the stress of responding directly to the IRS. 
• Case evaluation and strategy: From there, we consider the scope of the audit and precisely what the IRS is looking for. We can then develop a document submission strategy, deciding exactly what we need to provide, how to best present it, and what context the agency needs. 
• Defense and negotiation: Based on the facts of your case, we build a defense, prepare and handle any IRS interviews or interactions, and challenge findings where they are inaccurate, unsupported, or unfair. 
• Outcome management: We’ll help you understand how the audit is likely to conclude as we go through the process and develop a plan for all possible scenarios, including no-change, agreed upon changed, or disputed changes. Then, we’ll help you appeal or make a plan to resolve any additional tax liabilities due to agreed-upon changes. 

We offer audit representation from the initial notice through appeals, but if you’re already in the midst of the process, we can often pick up wherever you are. You can bring on representation in the middle of an active audit.

You can also get help with a recently completed audit – if you’ve just received Form 4549 requesting changes to your tax return that you don’t agree with, let us help you respond – but act quickly, as the deadlines are strict. 

Resolution Options After an Audit

If your audit concludes with you owing additional tax, that’s by no means the end of the process. There are several ways to resolve your liability, depending on your circumstances, including: 

• Payment plans – pay your debt in installments.
• Offer in Compromise – settle the debt for less than the total sum.
• Penalty abatements – reduce or eliminate penalties if you have reasonable cause.

Understanding which options are open to you is the first step toward resolution. A professional tax audit lawyer can assess your situation and identify the best strategy for your circumstances. 

What Happens When You Hire Us

When you hire us at Seattle Legal Services, you can expect:

• The IRS to stop contacting you directly as we take over communication 
• A clear response strategy, tailored to your individual audit circumstances
• The case to be handled by a qualified IRS audit defense attorney
• To receive ongoing guidance and support until we reach a resolution

We’ve worked with countless clients to help resolve even the most complex of audits. Our goal is to minimize your exposure and reach the best outcome for your tax situation. 

When to Hire an IRS Audit Attorney

Are you considering getting IRS audit help in Seattle? Hiring an IRS audit lawyer is the smart choice if: 

• You have recently received an audit notice. Contacting us immediately after receiving your notice gives you the most time and resolution options. 
• Your audit is complex or high-dollar. When your audit involves significant sums of money, it’s strategic to work with a tax audit lawyer. 

• You want to dispute the IRS’s findings. Disputes require strong knowledge of the tax code, making legal representation critical.

• The IRS is expanding the scope of its audit. If the agency expands its investigation, getting legal representation is a must. 

If you’re facing a very simple audit with clear supporting documentation and no significant discrepancies, you may be able to handle the case without legal help. For anything more complicated, the risk of self-representation can be high.

Why Choose Seattle Legal Services

At Seattle Legal Services, we focus on audit defense and IRS representation. Every case involves direct attorney involvement. We are not focused on sales volume – we’re focused on providing the best services possible to our clients. 

IRS audits require careful, considered representation. If you want an attorney who develops a deep understanding of your case and provides a personalized approach, we are the right choice. Contact Seattle Legal Services, PLLC at 206-536-3152 to discuss your case.

Frequently Asked Questions (FAQs) 

What should I do after receiving an audit letter?

The first step is to read it carefully to understand what the IRS is requesting. Contact an IRS tax attorney immediately to help you decode the notice. How you respond to this letter will shape the investigation that follows.

Can an audit expand to other years?

The short answer is yes. Should the IRS identify a discrepancy in one tax year, they can open up additional years for review. If you don’t manage the process, this can lead to significant risks. 

How long does the IRS have to audit me?

The IRS has three years from the filing date – but if they see a significant income understatement on one year’s return, they can go back six years. There’s no time limit in cases of fraud. 

What is IRS Form 4549?

An IRS Form 4549 is the examination report the agency uses to share its proposed changes to your tax liability. When you review it, you have the right to respond, dispute, or appeal it.

How long does an audit take?

The answer often depends on the complexity of your case. In a straightforward correspondence audit, it may take a matter of weeks. However, a multi-year or business audit can take considerably longer, especially if there are any delays or disputed findings.