The old adage that “an ounce of prevention is worth a pound of cure” certainly applies to tax issues; correcting an error up front is more favorable than having to explain yourself in an audit. But oftentimes we only find out about a tax problem after receiving a letter from a tax agency assessing a deficiency or notification of an exam. Audit outcomes can very widely between “no change” or significant tax assessments with added penalties and interest.
The particular outcome of any given tax examination will typically depend on two things: the sufficiency of the documents provided by the taxpayer, and the correct application of tax law to the facts of the case. Both are absolutely required to reach the best outcome. Our office works together with our clients through each phase of the process including audit, appeals and even tax court to help reach the best outcome possible.
If you have questions regarding a letter from a tax agency, an unfavorable exam report or even just a question about a possible error on a tax return, give Nielsen Law Group a call to discuss your options.