Tax Audit Defense Attorneys in New York, New Jersey & Federal Court

Facing a Tax Audit? Protect Your Finances and Your Future.

Receiving notice of a tax audit from the IRS, the New York State Department of Taxation and Finance, or the New Jersey Division of Taxation can be stressful and intimidating. Audits are designed to verify the accuracy of tax returns, but they often lead to additional assessments, penalties, or even criminal investigations if the government suspects fraud.

Having skilled legal representation during an audit is critical to protecting your rights and ensuring the process does not escalate into more serious consequences.

What Triggers a Tax Audit?

Audits may be initiated randomly, but they are often triggered by:

  • Unreported income or mismatched IRS information (W-2s, 1099s, K-1s, etc.)
  • Large or unusual deductions or credits
  • High-value business expenses or losses
  • Cash-based businesses or industries known for underreporting
  • Offshore accounts or foreign income
  • Whistleblower reports or tips

Types of IRS Tax Audits

  • Correspondence Audit: Conducted by mail, usually for specific issues such as deductions or credits.
  • Office Audit: Requires the taxpayer to appear at an IRS office with supporting documents.
  • Field Audit: Conducted at a home, business, or accountant’s office — the most intrusive type of audit.

Audit Process in New York & New Jersey

  • New York: The Department of Taxation and Finance conducts audits for state income tax, sales tax, corporate taxes, and residency audits. Residency audits are particularly aggressive, often involving deep reviews of living arrangements, travel, and financial records.
  • New Jersey: The Division of Taxation conducts audits for personal income, sales/use tax, business taxes, and payroll obligations. Like New York, New Jersey can impose significant penalties for underpayment or misreporting.

Potential Consequences of a Tax Audit

  • Additional tax assessments with interest
  • Civil penalties for negligence or underpayment
  • Fraud penalties for intentional misstatements
  • Tax liens or levies if amounts are not paid
  • Referral to the IRS Criminal Investigation Division if fraud is suspected

Defense Strategies During a Tax Audit

  • Ensuring only required documentation is provided — not more than necessary
  • Identifying and correcting IRS or state calculation errors
  • Establishing that discrepancies are due to mistakes, not fraud
  • Negotiating settlements, penalty abatements, or payment plans
  • Preventing escalation from civil audit to criminal investigation

Why Legal Representation Matters

Audits are not just about numbers — they are investigations. Without proper representation, taxpayers risk saying too much, providing unnecessary documents, or allowing an audit to expand into other years or issues. An attorney experienced in IRS, New York, and New Jersey tax audits can guide the process, protect your rights, and work to resolve the audit on the most favorable terms possible.