After you receive your final tax audit report from the IRS you will either end up owing them nothing, or you will have to pay them a specified amount of money in back taxes. If you have satisfied the IRS and their inquiries by backing up your tax return they will simply consider it case closed and nothing will come of it. If the IRS determines that you owe them back taxes, there are several options that you have. If this is the case you should consider contacting a tax attorney to take over the negotiations with the IRS.
Your tax attorney will review the amount that the tax audit report claims that you owe and they can determine whether or not it is accurate. Then they will deal directly with the IRS to arrive at a figure that is more realistic. Then, they will work out a monthly repayment plan with the IRS if you are unable to pay the entire amount off at once. If you end up owing the IRS a substantial amount of money that you believe that you will not be able to repay, your attorney can draw up an offer in compromise plan. This offer will be for one lump sum payment to satisfy the debt at a reduced rate. The government has the option to determine whether or not they will accept the offer. If they do choose to accept it, your debt will be considered satisfied and the case is closed.
After the tax audit report is completed, it is also possible that an IRS agent may turn your case over to the Criminal Investigation Division of the IRS. This occurs when the auditing agent suspects that a crime has been committed while he or she is in the process of completing your IRS tax audit. For the most part, these auditors only want to collect the back taxes that are owed, but if you make a mistake during an interview with an IRS agent and you offer up incriminating evidence against yourself, the agents are obligated to determine if there was criminal intent. Remember, most IRS tax audits and most criminal investigations never end up going anywhere unless you say something you shouldn’t have said that was self-incriminating or if you turn over records that were incriminating. If you suspect that you may have made negligent errors or erroneous claims on your tax return, hire a tax attorney immediately to save you from incriminating yourself.