What Happens when Your Receive a Tax Summons?
Other than receiving a refund check, correspondence with the IRS is usually a stressful experience to say the least. However, as understandable as it is to ignore the notice for as long as possible, the truth is that you will need to open it immediately to see the request that the IRS is making. So, do not ignore an IRS request as it will lead to even more expenses or worse depending on the nature of the request.
What is a Tax Summons?
Basically, this is a request for information from the IRS usually because they have found something in your return that does not comply with their records. Any request for information that falls within the parameters of what the IRS does generally means that you should reply as quickly as possible and certainly within the 30 day time period.
If you receive a tax summons, your choices are limited to compliance, refusal or going to court to quash it through legal reasons. Simple refusal may lead to more time in court and even facing criminal sanctions or civil contempt. This is because unlike a request for information which is called an IDR, a summons is showing that the IRS is more serious and determined to get the information.
Grounds for Non-Compliance
Admittedly, the grounds for not complying with a tax summons are fairly high. The most prominent reasons are work product protection and attorney-client privilege, however, it must be stated that the IRS on average wins about 90% of the cases that are not settled, so your chances of success are simply not very good depending on the grounds that you use for not complying.
However, before you can make the best decision possible when receiving a tax summons, you will need to get the advice from a good tax attorney.
Why Getting Legal Representation Helps
Your New York tax attorney can provide you with the proper legal representation when facing an IRS summons. Having proper representation by your side offers powerful advantages including the following;
– Your Rights Fully Protected Under the Law
– Understanding All Legal Options
– Organization of Your Defense
One of the best reasons to hire a tax attorney is that they can present you with a full evaluation of the summons that includes what it means and how you can respond. There are times in which an attorney can actually find ways that address the issues the IRS is presenting and clear up any misunderstandings. In this manner, you can have your case handled in the proper manner and ensure that all aspects of your communication with the IRS are legal and complete while protecting your rights under the law.
By using the services of a knowledgeable, experienced tax attorney, you can improve immeasurably your position when it comes to dealing with an IRS tax summons. Most tax attorneys will offer a free consultation for their services where they can explain what they offer and how they can help you in your current predicament.