Audits & Tax Court

Representation During an Audit

"Your tax return has been selected for audit" is a notice that no one wants to receive. Jozwiak Law knows this, and we have helped hundreds of clients work through and resolve any complications that may arise during the resulting audit process.

Suspicious looking items on a return are what usually raise the red flag at the Internal Revenue Service. Therefore, it is not advisable to try to defend yourself during an audit. Even if you firmly believe that you have not done anything wrong or illegal, you should have an attorney represent you throughout the audit process, as in any matter as serious as this. If you choose to act alone, your situation could actually worsen. Like any other investigator, those at the Internal Revenue Service are well trained in the questioning process and they can easily ferret out income that has not been reported, or expenses that have been erroneously deducted on your return. Like any other system or procedure, if you are not aware of the way it all works, you are at a distinct disadvantage.

One of our policies, as allowed by law, is to stand in for and represent our clients during any questioning or during the actual audit itself. You will never actually have to appear before the investigators. Jozwiak Law also provides advice on which documents and information are legally required to be surrendered by the client, and which are not.

One method that is often implemented by the Internal Revenue Service is to immediately disallow any and all business or similar expenses that cannot be verified through documentation. They then assess other taxes, interest and penalties. In addition to this technique of raising the amount of your income that is taxed, they will search through the total amount of deposits that have been made into your bank accounts, and adjust your income so that they are comparable.

If your documents and records have either been lost or destroyed, Jozwiak Law can help a client to either recreate their records or find other means by which to substantiate their claim. If a bank deposit analysis conducted by the investigators appears to reveal unreported income, we have the experience and knowledge to defend our clients against such allegations.

Not responding immediately to an inquiry or tax audit being conducted by the Internal Revenue Service can put you in further jeopardy, and frustrate your position. Therefore it is essential for you to seek the advice and experience of a qualified law firm that specializes in tax disputes. As in any other type of legal investigation, conducted by an official agent of the government, any and all information or documentation that you provide to the examiner or auditor can and will be used against you. This can result in additional taxes, penalties and interest.

Never disregard an audit as not being important or as something that will go away if ignored. The courts are able to attach your wages, seize your assets, which may include but not restricted to your automobiles, real property and bank accounts, just to cite a few examples.

Representation in Tax Court

Through our representation and experience, Jozwiak Law has saved our many clients millions of dollars sought in additional taxes, interest and penalties by the Internal Revenue Service in Tax Court. These cases dealt with the intricacies and pitfalls associated with allowable deductions, disputes over reported income, trust issues, and complicated legal questions involving accurate interpretation of the complex Internal Revenue Code.

Another one of our goals is to try to reach a concordant settlement with the Internal Revenue Service from the outset of litigation, so that both parties can avoid the time and expense of a Tax Court trial. Another danger associated with the process of litigation, that should always be remembered, is that past year's returns and other liability issues may be raised in the process, creating an increased exposure to risk and additional costs to the tax litigants.

Although we reach a satisfactory settlement of a dispute in most cases, without the need of a trial, we are fully prepared to go to trial on your behalf if the need arises. This also holds true for an appeal.

Similar to any other type of litigation, our being fully versed in the process is of extreme benefit to our clients. Our familiarity and rapport with the professionals who represent the Internal Revenue Service is also of great benefit.

If you feel that any of this applies to you or your situation, do not hesitate to call us for an appointment.