Have a tax attorney look things over.
Go to your local CPA firm for representation. Doesn’t need to be a large firm, just one that has experience in dealing with the IRS.
Insist on the Tim Geithner or Charlie Rangel treatment.
Depends on what type of money they think he owes. An attorney is going to cost him; if the amount at-issue is small, then it may cost him more to hire an attorney than to just pay them what they think he owes, to go away.
Fake your own death and move to Costa Rica.
If you’re not getting audited every year, you’re paying too much in taxes.
If your passport is still valid leave the country immediately. If not get a deep tan and go to the nearest sancuary city.
What kind of audit? Correspondence audit or office audit?
The former usually isn’t a big deal. Just answer in writing and pay whatever needs to be paid.
An office visit is more serious. Get a CPA or an ‘enrolled agent’ (someone who is authorized to speak to the IRS on your behalf) to represent you.
Never volunteer any more information than is requested. Otherwise you open the door to additional investigation.
Lay everything out in the open they ask for. Otherwise you just encourage them to dig deeper.
If they know they did things that were debatable that amount to substantial amounts of money, then they should hire a lawyer to minimize the pain. If the things in question are relatively small, then simply be prepared to pay the bill along with interest and penalties.
If they lied on their return then hire a lawyer and take your medicine.
How much money is involved and what sort of “risky” deductions did they take...the answer is a combination of both questions..
Hmmmm....
In all of my experiences...the IRS doesn’t make phone calls.
They send letters.
Lawyer.
They can use the convaluded tax code to find things that aren’t even there! Get a lawyer that knows his or her way around tax law.
I got audited in 2008. Get an accountant to go with you, do not meet in your home, but all meetings should be at the accountants office. Any gray areas should be answered with “I’ll get back with an answer”. My tax return was relatively pristine so I did not get an attorney but that might be a good idea if the amounts in question are large.
The auditor is likely to be an ass but my experience only has a sample size of one.
When I was done, the auditor sent me a bill which I paid. Apparently someone audited the auditor because later they sent me a letter with a check refunding about 10% of what I paid.
If you got a CP2000 letter, it compliance letter kicked out by a computer. It usually is very specific and indicates what caused the audit. Unless you _know_ you are right (and have legal advice to back it up), dont challenge it; just pay up.
1. Get a good tax lawyer to review the data.
2. Tell the lawyer the truth, all of it.
3. Take the lawyer’s advice.
4. When talking to the IRS, answer questions honestly and but do NOT volenteer information.
Did they do their own taxes, or have a CPA do them?
If they did them themselves, get a tax lawyer. If not, have the CPA handle it.
I’ve been audited a bunch of times, and only had one (small) penalty in 38 years. Always let the pros do what they do best.
Life is to short to be a slave.Move to another country and find your freedom.
Tell them you want to talk to Obama and want a cabinet or czar position