By Gabriel G. Tsui, CPA, JD
The federal government and state revenue departments are continuing to substantially increase the number and scope of tax audits to secure more funds. All aspects of taxation from sales tax to customs charges are affected. Tax controversy is an area of practice that involves assisting taxpayers with representation before tax authorities.
A tax controversy typically begins when you receive correspondence from the Internal Revenue Service or a state revenue department. If the correspondence is a notice of examination, then you have unfortunately been selected for an audit and examination of your tax return. Every audit is different, but all are almost always urgent, time-consuming, and inconvenient.
The examination phase of an audit usually begins with a request for submission of information to the IRS or state revenue departments followed by correspondence asking for clarification or additional information. There will often be a request for an in-person interview. When the auditor is satisfied with the examination, a determination will be issued. This determination often proposes adjustments to your tax return. If you disagree with the auditor’s findings, there are various avenues you can undertake to resolve the dispute.
Bronswick Benjamin is well-positioned to assist you with any tax controversy needs. Our team of tax advisors includes experienced accountants and attorneys for representation at all stages of the tax dispute process. In next month’s newsletter, we’ll advise on what you should do if you receive a notification of audit.