Legal Question in Tax Law in New Jersey
Audit
We were recently audited (IRS calls it an examination) for 2002 through and including 2004 and after submitting all of our receipts and proofs they determined that the tax preparer messed up by using the incorrect schedule. These audits are actually still pending. We have no children or business but we are homeowners. We are scheduled to sit with the tax preparer and conference in the IRS to sort this out. The IRS has already intercepted our 2005 tax refund almost all of our $6500 refund. Should I hire an attorney? What other recourse do I have?
1 Answer from Attorneys
Re: Audit
You do not need an attorney for the examination, but it might be a good idea to retain one. I do not know the issues that were involved or the impact of using the wrong schedule, without looking at the returns and the examination report. If you would like me to review the matter, contact me directly. Depending upon the issues and the effect of using the correct schedule, there may or may not be an actual adjustment, or taxes due. I suggest reviewing all documents with a tax professional and then decide if you need representation at the hearing.