What if I am audited by the IRS but my recordkeeping is poor or my records are lost?

Since I often help clients close out IRS audits when their records are lacking, I thought it was time to answer this question: 
I recieved a letter to meet an auditor from the IRS to audit my 2005 - 2007 taxes. My house was broken into several times, and I don’t have any of my paperwork [...]

Can the IRS conduct a collection interview at your house or business?

IRS Revenue Officers continue to become more aggressive in the field. Here is a new approach to look for:
I had a recent case in which a Revenue Officer sent my client a notice stating that that there would be an interview at my client’s house.  These meetings usually take place at an IRS office.  It [...]

Doing away with an audit result in bankruptcy.

I received this referral this week about eliminating taxes in bankruptcy:
I was audited for my 2005 taxes and owe $55,000 to the IRS as a result.  I owe other debt in addition to the IRS liability, and was considering bankruptcy even before an IRS Revenue Officer came to my house and left her card in [...]

“But I thought bankruptcy couldn’t eliminate IRS taxes…”

I hear this often when I suggest bankruptcy as a source of resolution.  I heard it again today during a telephone conversation with a new client.  Here is what I explained to the client:
Under the bankruptcy code, the answer is ”Yes” to bankruptcy as a means of IRS resolution if you owe income taxes, you filed your returns, and the [...]

What happens if the IRS accepts my offer in compromise, but then I have trouble staying current on my taxes?

This is frustrating, and has happened to my clients in the past. The IRS does not want the compromise to default any more than you do. The IRS wants to give you an opportunity to remedy a potential default in an already accepted compromise.
There are three primary ways the IRS will consider defaulting [...]

Tax Court - providing a level playing field in audits.

I just settled an audit on behalf of a client that had to make its way to Tax Court to be resolved.  The audit was caused by significant losses my client claimed on rental real estate.  But it but morphed into an IRS investigation of her banking statements and deposits. 
Taking a case to Tax Court [...]