How to Deal with an IRS Audit

Tuesday, February 21, 2012
It can be terrifying to find out that you have be selected for a IRS audit. While there are techniques to reduce the possibility of an IRS audit there is no way to guarantee that you wont be audited. Although most audits are triggered by errors in returns it is also possible to just be randomly picked from a group of fellow taxpayers. Regardless of why your return is chosen for an IRS audit, it can be an intimidating and stressful situation. If you do find yourself in the position of receiving an IRS audit, it is important that you get help from a professional tax resolution group like My Tax Attorney. When the government receives tax returns they are grouped with similar returns and differences are identified. Using statistically valid random sample returns, anomalies are identified for IRS audits. Some of the circumstances that can show up as triggers can be low profit margins, high expenses or unreported income. Another common trigger for an IRS audit is when information on the return doesn’t match what has been reported to the IRS from other sources. Examples are when taxpayers forget to report the earned interest on a savings account and the bank reports it to the IRS. Situations like this can often lead to IRS audits. If you do find that you are the target of an IRS audit, it’s important to seek out professional help dealing with the IRS. There are three different types of IRS audits that can be expected. The first and most common is the Letter Audit. In this instance the government will send out a letter informing the taxpayer that changes have been made to the original tax return. Usually in this situating there are two options. Either agree to the changes and pay any outstanding balance or dispute the changes. In the case of a dispute, it is recommended that a tax resolution professional be contacted for help dealing with the IRS audit. The second type of IRS audit is the Office audit. Like the letter audit, it will arrive by mail with a letter that identifies the specific items in questions and directs that supporting documents be taken to the local IRS office. Once at the local office an auditor will go over the documents and examine them to correct the discrepancy. This type of IRS audit is most common for small to medium businesses and again it is recommended that a proven tax Professional like those at My Tax Attorney be contacted for help. Going to an IRS office and dealing directly with an Auditor can be intimidating and may end with you paying more than you owe. Enlisting the help of professional ensure that you are properly represented. The third and final type of an IRS audit is the Field audit. This is where the IRS auditor goes out the property of the owner of the tax return. During this type of IRS audit it strongly recommended that you seek the help of professionals like those at My Tax Attorney. Field audit are often very intimidating and will be dealing with extremely detailed questions and information. However contacting My Tax Attorney as soon as possible after being notified of the IRS audit can help make sure you are represented and your legal rights are protected. IRS Resource If you are looking for more information then click to visit the IRS.gov official website. For specific questions you can contact the IRS here. There’s a vast collection of helpful IRS forms and publications here. Also, the Department of Labor can offer specific employment tax guidance. Google is another tool for searching specific laws in your area.