Tax Attorneys in Albany New York – Call (518) 452-1800 to set up a Consultation

If you are facing a tax audit, tax allegation, tax dispute, or tax compliance issue, the tax attorneys in Albany, New York at The Towne Law Firm, P.C. are here to help. An IRS tax audit can affect your business and your peace of mind. The Towne Law Firm, P.C. can review your situation, and fight to protect your reputation and your financial interests. Our legal team can help you navigate a range of IRS tax issues. We understand how stressful a tax audit or unexpected tax bill can be. Reach out to our tax attorneys in Albany, New York today to learn more about how we can help.

What Happens When You Face a Tax Audit?

In most instances, a tax audit begins with a letter from the IRS informing you that the government needs additional information. People who are self-employed and who run their own businesses with profits and losses are more likely to face tax audits than individuals who are employed and have their taxes regularly deducted from their income. But the IRS sometimes performs random audits, or audits tax returns when it suspects errors or other suspicious activity. Common causes of tax audits include:

Lower Profit Ratios Than Expected for Your Industry. The IRS runs tax returns through its software and if you claim self-employment income or business income and your business has lower profit ratios than other similar businesses in your industry, the IRS might audit your return to check these numbers. If you’ve been careful to do your taxes correctly, it’s likely just that your business does bring in less profit than other similar businesses and you’ll be able to provide evidence and receipts to support your deductions. Yet sometimes errors can happen. An IRS tax lawyer in Albany, New York at The Towne Law Firm, P.C. can review your tax returns, look at how you arrived at your profits and losses, and help you fight a tax audit. One of the big questions that can arise is whether a deduction is an ordinary and necessary expense for doing business. For example, a professional soccer coach might deduct soccer balls and soccer equipment as an ordinary or necessary expense of doing business, but if you run a cleaning company and then deduct the same soccer equipment for you volunteer at your local soccer club, you could face issues with the IRS. If you’re not sure whether the IRS would consider your deduction a normal or necessary aspect of doing business, you might want to speak to an Albany NY tax attorney at The Towne Law Firm, P.C. Disputes about normal and necessary business expenses can sometimes get complicated.
Failing to Report Income. A common error that can lead to an IRS audit is when a person has a regular full-time job, but also works a freelance or 1099 job on the side. If you forget or fail to report your 1099 income, you could face an audit. When you perform contract work for another company, the company sends your income to the IRS through a 1099. If you fail to report this as income, you might receive a letter from the IRS.
Home Office Deductions. When claiming a home office deduction, it is important that there’s a part of your house specifically reserved for doing business. If you claim too big a space or too large a percentage of your home, you could face an audit. You also must actually have a home office in order to make this deduction. If the space is used for other purposes, it might not count.
Using Round Numbers. We get it, adding up numbers as they appear on receipts or invoices can get tedious and you might be tempted to round up or down. Yet, doing so could put you in hot water with the IRS. The IRS might see round numbers as highly suspicious and may audit you if you were rounding your deductions up or down.
Higher Income. Lower income people are at less risk of being audited than individuals with higher incomes. Yet, if you file your taxes correctly, and without error, the audit is more likely to end up in your favor. A tax attorney in Albany, New York at The Towne Law Firm, P.C. can represent you during this process.

These are just some of the reasons that can flag your tax return for an audit, but this is not an exhaustive list of the things that can sometimes go wrong when filing taxes. Tax law can be complicated and a tax lawyer in Albany, New York can help you understand where errors were made or help you take steps to defend yourself during your audit. If you receive a tax audit letter from the IRS, it’s important to not panic. You tax audit may occur entirely over correspondence, or it may happen at a tax office or at your tax preparer’s office. An IRS tax lawyer in Albany, New York at The Towne Law Firm, P.C. can stand by your side every step of the way helping you navigate the audit process.

Am I Being Audited?

Not all letters received from the IRS are audits. For example, from time to time, the IRS’s computer programs might flag errors in your tax return and simply send you an adjustment letter. This adjustment letter will either give you a refund or send you a bill. If you don’t want to fight the adjustment, you can simply pay the bill. These types of audits may happen if you failed to report income (like interest income, capital gains, or income from a 1099), or if you made a smaller mathematical error on your tax return. If you receive such a letter, and don’t agree with what the IRS is claiming, you may need to dispute the adjustment. The tax lawyers in Albany, New York at The Towne Law Firm, P.C. may be able to help you address these tax issues which can arise from time to time.

Sometimes the errors occur because of an error made in another party’s reporting process. If, for example, you failed to report 1099 income, you may also have the right to make business deductions to reduce your tax bill. 1099 income can sometimes strike people unexpectedly, especially if you thought you were an employee, but you were treated like a contractor (you were misclassified by your employer). In such a situation, you might be put in a position by your employer where you would be paying taxes your employer might have an obligation to pay (self-employment taxes). If you disagree with your 1099 classification, you may want to speak to the Albany, New York tax lawyers at The Towne Law Firm, P.C. who may be able to help you navigate the tax adjustment or audit process. We can fight improper worker classification and other errors.

How Can a Tax Appeal Lawyer Help Me?

If you are audited, the IRS might determine that you owe money or may take next steps. The next steps can include everything from a tax bill, a tax lien, or seizure, or even criminal prosecution. If you cannot afford the tax bill, the IRS may be able to work out a payment installment program to help you avoid some of the more serious consequences of nonpayment of taxes.

If you don’t agree with the results of your audit, or the tax bill, you have the option of making a tax appeal, or to request mediation. There are several reasons why a person might appeal an audit or IRS tax decision. For example, you might appeal a tax decision if you believe:

The IRS misinterpreted the law, didn’t properly apply a law, or misinterpreted the facts of your case.
The IRS’s facts or information is incorrect, and you need to provide more data to support your position.
You don’t agree with the IRS’s conclusions.

A tax appeal lawyer in Albany, New York at The Towne Law Firm, P.C. can review your situation to see if a tax appeal or mediation is right for you. If we believe the IRS has misinterpreted the law or failed to properly apply tax laws in your situation, our tax attorneys may be able to help fight your case. A tax appeal could also include mediation in some cases. If you filed your appeal with U.S. tax court, the IRS appeals office may contact you to attempt to resolve the case before it goes to trial.

Should I Receive Help from a Tax Lawyer if I’m Audited?

If you are being audited by the IRS, you have the right to be represented. Your representative can include your accountant, CPA, or your tax attorney. If you are scheduled to appear before the IRS in person, your representative or tax attorney can attend this meeting on your behalf unless you have been formally summoned to appear. If you are being interviewed by the IRS and find yourself in over your head, you can stop the meeting in progress if you tell the IRS auditor that you would like to speak to a representative to review your situation. In some situations, you may not need a tax lawyer. But if you have questions about your rights, or are facing a complex tax situation, it might be helpful to have a tax representative on your side. If you have questions, reach out to the Albany, New York tax lawyer at The Towne Law Firm, P.C. today.

How Can a Tax Relief Attorney in Albany, New York Help Me?

A tax relief lawyer in Albany, New York can help you navigate your audit or tax dispute. A tax lawyer can help you organize your evidence to support your tax deductions and help you structure your financial life in a way that can result in a better tax outcome for you, your family, or your business. Furthermore, tax relief attorney in Albany, New York can review your specific situation and offer guidance on the next steps you can take to get you the best possible tax treatment under the law. How you structure your estate, your business, and your financial life can make a difference in the taxes you might owe. When might it make sense to hire a tax relief attorney in Albany, New York?

Here are some situations:

You have questions about how estate planning could impact your taxes.
You are staring a business and want to learn more about how to best structure your business to result in the best possible tax outcome.
You are facing an IRS tax audit and need help.
You have questions about tax relief. In some circumstances, you might qualify for tax relief. If, for example, you are an innocent spouse and were unaware of your partner’s actions, you might be able to receive tax relief. In other situations, you may be able to work out a compromise or installment plan with the government.
You don’t agree with a property value assessment and are concerned your taxes might go up.

If you have questions about whether you qualify for tax relief, or have tax questions and need answers, reach out to the Albany, New York tax relief lawyers at The Towne Law Firm, P.C. today. Our attorneys are here to help you take the next steps. Contact us today.

How Can I Contact a Tax Lawyer in Albany, New York?

You can reach the tax lawyers in Albany, New York at The Towne Law Firm, P.C. by calling 518-452-1800 or fill out our online contact form. Our lawyers are here to help answer your questions and help you take the next steps if you are facing a tax audit, tax dispute, or other tax controversy. We are here to help.