Eggshell Audits

These types of audits are so classified because of the sensitive nature of the issues that may be lurking just under the surface that have not yet been discovered by the taxing authority. It is important to have sophisticated legal counsel that understands the tensions that are at play in these types of cases, including balancing the requirement to cooperate with the need to avoid relinquishing one’s Fifth Amendment protections against self-incrimination.

And these types of matters call for different strategies depending on the nature of the potential issues. For example, it may make sense for legal counsel to stay in the background and not surface during the audit, or for strategic reasons the attorney should make his or her involvement known to the auditor. There is no “one-size-fits-all” approach; each case must be handled on its own facts with guidance from experienced legal counsel.