Frequently Asked Questions: Business IRS Audits

At the Law Offices of Robert T. Leonard, our objective is to provide businesses with the information they need to understand their situation and provide a customized approach to defend a tax or payroll audit. After reviewing the information below, reach out to us to receive customized advice based on your company's specific circumstances. Call us at 818-224-7935 or at 888-408-9486 to schedule a free consultation with business tax lawyer and CPA Rob Leonard. Based in Woodland Hills, we serve companies in Los Angeles and the San Fernando Valley, across California and throughout the nation.

Should A Business Handle An Audit By Itself?

If you are a business owner or in charge of a large company's finances, the prudence and business acumen that have led you to your current role have likely answered this question for you already. While you or your employees can represent your business, that does not mean that doing so will be in the company's best interests. Much as you are entrusted with running a business because you are skilled at doing so, you should put the audit defense of your company in our hands because we are well-known for our ability to find creative solutions to all possible state and federal audit situations.

What Penalties Can Arise From A Business Audit?

The results of an audit can have far-reaching implications for the business entity, employees of the company and the owners. Businesses face heavy civil fines that can be crushing to their ability to continue to conduct business. The IRS has focused its attention on payroll tax audits to ensure that workers are properly classified as employees and not independent contractors. Additionally, a number of companies struggle to be current on their payroll tax liabilities.

Both of these situations can lead the IRS to hold a "responsible person" liable for the trust fund portion of the outstanding payroll tax liabilities. The mechanism that makes this shifting of liability possible is known as the trust fund recovery penalty. If your business has outstanding payroll tax liabilities or is subject to an employment tax audit, you need representation from an experienced tax attorney to handle all of the potential issues, including defending a proposed assessment of the trust fund recovery penalty.

What Type Of Representation Is Necessary For Success?

While there are many talented tax attorneys in California, a high-stakes tax audit requires more than just proficiency in the field of tax law; it requires representation from a firm that focuses solely on tax controversies and tax litigation, and that is selective enough in its caseload to provide your company with the time and dedicated service it deserves. Success also requires direct access to an attorney who is also a CPA so that your matter can be accurately assessed, and a strategy can be developed that takes all legal and financial ramifications into account.

At the Law Offices of Robert T. Leonard, we provide our business and individual taxpayers with exactly this type of representation during audits and all other types of complex tax controversies.

Contact Our Lawyer With Your Business Tax Questions

We are here to answer all of your questions business tax audits. Call 818-224-7935 or 888-408-9486 (toll free) to arrange a free initial consultation. You may also contact us online. We are based in Woodland Hills and proudly serve clients in Los Angeles, the San Fernando Valley and other communities across the country.