A tax audit is a thorough examination of your taxable income and deductions by tax attorneys to verify that your tax records are accurate.
Detection of tax errors in your tax reports could result in heavy penalties, including imprisonment. The following are some of the things that happen whenever you fail a tax audit.
Once the tax attorneys discover that you have failed in your tax audit, they issue you with a written report informing you of the tax audit findings.
As soon as you receive the tax audit report, the tax attorneys expect you to analyze it and send your opinion feedback. If you determine that you are guilty, you can pay the amount you owe and terminate the case. Tax auditors assume that you plead guilty to tax offenses whenever you fail to respond to the notification.
The court process begins as soon as you fail to respond to IRS notification where you are assumed to be guilty. At this stage, you are allowed to present your case and defend yourself from the litigation process.
The court can imprison you for a term of about one year whenever they discover that you intentionally failed to file your tax returns. You are also subject to spending five years in prison whenever the court determines that you engaged in tax evasion during a specific time.
You can also be fined heavily in a year for every additional tax return you do not file. The court will add another fine whenever the tax attorney establishes that you filed fraudulent tax returns.
Failing in your tax audits is a severe offense that will result in hefty fines and imprisonment. It is crucial that you file your returns on time and reveal the correct information. You can appeal against the penalties imposed by the IRS in case you fail a tax audit.
The IRS Issues You With a Written Notification
Once the tax attorneys discover that you have failed in your tax audit, they issue you with a written report informing you of the tax audit findings.
The tax attorneys normally send their findings to you within thirty days and allow you to fill in for any appeal. The audit report usually highlights the amount that you owe and the reason why you are guilty.
Assessing the Audit Report
As soon as you receive the tax audit report, the tax attorneys expect you to analyze it and send your opinion feedback. If you determine that you are guilty, you can pay the amount you owe and terminate the case. Tax auditors assume that you plead guilty to tax offenses whenever you fail to respond to the notification.
Court Appeal
The court process begins as soon as you fail to respond to IRS notification where you are assumed to be guilty. At this stage, you are allowed to present your case and defend yourself from the litigation process.
After this, the court of law could determine that you are guilty and you have committed a tax offense. The court judge will give you reasons as to why you are guilty and charge you accordingly.
Jail Imprisonment
The court can imprison you for a term of about one year whenever they discover that you intentionally failed to file your tax returns. You are also subject to spending five years in prison whenever the court determines that you engaged in tax evasion during a specific time.
Hefty Court Fines
You can also be fined heavily in a year for every additional tax return you do not file. The court will add another fine whenever the tax attorney establishes that you filed fraudulent tax returns.
Failing in your tax audits is a severe offense that will result in hefty fines and imprisonment. It is crucial that you file your returns on time and reveal the correct information. You can appeal against the penalties imposed by the IRS in case you fail a tax audit.
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