Many taxpayers, even in good times, are concerned that the assets they have worked so hard to acquire may be vulnerable to the IRS and other creditors should they suffer a reversal of fortune. Most taxpayers are terrified of an IRS tax audit for this reason. If there is an IRS audit, they can always run for the ultimate shelter-bankruptcy. But bankruptcy does not apply in all situations, nor is it the preferred course for most taxpayers. An alternative is to transfer assets to a separate entity to avoid seizure by the IRS. These entities may include revocable living trusts, tenancies by the entirety, and family limited partnerships.

These structures can prove very sturdy when the creditor wolves, including the Internal Revenue Service, come knocking at the door. However, debtors must be careful or they run the risk of making a fraudulent conveyance. Any transfer that cannot be justified for independent reasons, such as estate or income tax planning, may be fraudulent.

If you are the subject of an IRS Tax Audit and you are worried about losing your assets to the IRS, please call us now. Please call us at your earliest opportunity if you would like more information about how this development affects you.