Case Studies

Lazarow Law Firm Obtains Refund For Businessman After Appealing Audit Amount of $90,000

Tucson, Arizona.  A hard-working small businessman was audited by the IRS for three tax years. He represented himself during the audit. 

The IRS auditor merely looked at the business bank statements during the audit. She made the determination that the businessman owed a total of more than $90,000 more for taxes, penalties, and interest.

The Lazarow Law Firm came in after the audit and determined that the auditor did not allow thousands of dollars in expenses that were paid in cash even though the taxpayer had receipts for everything. He would take cash out of the business bank account to pay for materials and other business expenses.  This, of course, is not a good practice. After consulting with Mr. Lazarow, the taxpayer changed to paying everything by check or through his business debit card to track expenses.

All of the expenses paid by cash were matched up to the bank cash withdrawals and the receipts. The auditor still refused to change her audit result, so Lazarow appealed the case to the IRS Appeals Unit.

Mr. Lazarow argued the case to the IRS Appeals Officer. The result was that the auditor's report showing the taxpayer owed over $90,000 was not only reversed, but the taxpayer wound up getting tax refunds instead.