Tax Controversy: Audits, Appeals & Litigation

Technical terms that the IRS and state tax authorities use often do not begin to capture the devastating financial consequences they can introduce for an individual, family or business. A “proposed adjustment” or notice from the service center that you are required to provide additional financial information may signify a tax liability that is far beyond your current means.

At the highly regarded Illinois law firm Demetrius J. Karos, Ltd., we help people deal with tax problems — often called “tax controversies” — every working day. When you contact our firm, you can speak and work directly with a tax adviser and tax litigation attorney licensed to practice for well more than 20 years. Mr. Karos is also a CPA with invaluable corporate leadership and IRS employment experience.

Have You Received A Proposed Adjustment?

Other than annual refunds, if applicable, virtually no one wants to receive tax-related correspondence. One common scenario is receipt of a proposed adjustment: This typically means a review of your tax return indicated you owe more money — potentially many thousands or hundreds of thousands more, depending on the circumstances.

What To Do When The IRS Notifies You Of An Audit

Tax issues are one of the most complicated subjects to deal with. Thus, it can be concerning when the Internal Revenue Service (IRS) wants to audit you. Here is what you should do after the IRS notifies you of an audit.

Understand The Reason For The Audit

The IRS can select you for an audit due to random selection or related examinations. With random selection and computer screening, the department uses a statistical formula that compares tax returns against “norms” for similar returns. Thus, your records may be selected for a simple mistake, which you can be allowed to correct, for instance, by filing an amended return. However, at times, the issue can be complicated.

With related examinations, the IRS can summon you for an audit if your returns involve issues or transactions with other taxpayers. For instance, if your business partner has a tax issue, you may also be questioned.

Therefore, before panicking, you should obtain more information about the audit. Since the IRS will notify you of an audit by mail, you can get more information through the same route or call.

Get The Required Documents For The Tax Audit

When the IRS contacts you, they will inform you of the documents you need for your audit. If the audit will be conducted in person, you should ensure you have all the required documents to hand. If the audit is to be conducted by mail, you should ensure you send everything they request.

Adequate information and documentation are crucial when facing an IRS audit. It will also help to get legal guidance to avoid costly mistakes.

Dependable Tax Advice And Skilled Representation In Your Meeting Or Hearing

In reality, you may or may not owe this amount. Determining and potentially contesting that are jobs for a dedicated tax professional. Many people who try to advocate themselves make critical mistakes they later fiercely regret. Our firm steps in capably in this situation and others, including:

• Providing essential analysis, guidance and representation if you are required to respond to a notice or appear for an office audit
• Pursuing a well-prepared, technically sound appeal if an auditor has drawn a questionable or incorrect conclusion
• Taking your matter to the appropriate tax court if this imposing, but viable step, makes economic sense for you

Schedule A Consultation With Our Tax Controversy Attorneys

Based in Naperville, tax controversy lawyers Demetrius J. Karos and Kayla Karos Shiple have built a reputation throughout greater Chicago and beyond for providing clear, practical counsel and earning results. If you are facing a major tax setback or are worried about the outcome of a pending audit, contact our firm at 815-534-4402 and schedule your consultation today.