Last Updated on: 27th July 2023, 06:04 pm

Choosing the Right Cash Business Tax Audit Lawyer – Everything You Need to Know

If you run a cash business, you know how meticulous you need to be with your accounting and financial records. Even slight miscalculations can land you in hot water if you’re randomly selected for an IRS audit. Having an experienced cash business tax audit lawyer on your side can help you get through the audit smoothly and avoid massive penalties. Here’s a comprehensive guide on why these attorneys are so important, where to find one, and how to choose the best professional for your needs.

The Risks of a Tax Audit for Cash Businesses

The IRS closely scrutinizes cash businesses like restaurants, retail stores, taxis, salons and any other company dealing heavily in cash. Some specific red flags include:

• Reporting income that seems unreasonably low for your volume of business
• Large, questionable deductions
• Not reporting all your income
• Claiming personal expenses as business deductions

If anything seems inconsistent in your tax paperwork, you may get flagged for an audit. The IRS will request documentation to support every number you reported. If you can’t provide adequate documentation, you’ll be forced to pay back taxes plus steep penalties that can devastate your business.

How a Tax Audit Lawyer Can Help

A skilled cash business tax audit attorney deeply understands IRS processes and will proactively organize rock-solid documentation of every tax and financial detail reported. If anything is amiss, they’ll work diligently to reconcile the discrepancies before an audit even occurs.

If you do get audited, your lawyer will handle communicating with the IRS directly to negotiate the best possible outcome. Their goals are to:

• Correct minor issues and prevent unnecessarily large penalties
• Provide additional documentation if anything is missing
• Explain any confusing or complex transactions
• Argue to reduce any proposed penalties
• File appeals if needed to dispute IRS findings

With extensive tax code expertise and financial forensic skills, your attorney has your back throughout the entire audit process. Their representation can save your business.

Where to Find Qualified Tax Audit Lawyers

If you run a cash business in a major metro area like New York City, there are thankfully many qualified tax audit lawyers to choose from. Here are some recommendations on where to look:

Get Referrals from Your Accountant or Financial Advisor

Your accounting and finance professionals likely have relationships with tax attorneys they can recommend. These referrals are great because the lawyers will already be familiar with your financial records.

Check IRS Watchdog Groups

Organizations like the Taxpayer Advocate Service have search tools to find lawyers with specific IRS-related experience in your city.

Contact Your Local Bar Association

The New York State Bar Association offers referrals to tax attorneys who can assist with audits.

Look for Lawyers with CPAs on Staff

Since navigating an audit is highly financial, look for attorneys who employ CPAs with IRS audit expertise on their teams.

Read Online Reviews

Reviews on Google, Avvo and other sites can give insights into the audit experience other businesses had with different tax lawyers.

Tips for Choosing the Best Cash Business Tax Audit Lawyer

Once you have a shortlist of qualified lawyers, here are some factors to keep in mind as you choose the right one:

Focus on Experience

Make sure any lawyer you choose has extensive specific experience representing cash businesses being audited by the IRS.

Consider Track Record

Look for an excellent track record getting audits resolved favorably for businesses like yours. The right lawyer will know how to avoid large penalties.

Evaluate Resources

Choose a lawyer with access to financial experts like CPAs to demonstrate your accounting was done properly.

Prioritize Responsiveness

You need an attorney who is accessible and gets back to you in a timely way before and during your audit.

Discuss Payment Options

Talk through the payment terms and options to ensure they work for your budget. Avoid surprise fees.

Trust Your Gut

Most importantly, go with an attorney you feel confident in and who alleviates your stress about the audit.

Don’t Delay – Get Legal Help Now

If you’ve received an IRS audit notice, the best thing you can do is seek qualified legal help immediately. With an experienced tax audit lawyer firmly in your corner, you can rest assured everything will be done to achieve the best outcome and protect your business. Don’t leave it to chance – get a lawyer on your team right away.