IRS AUDIT
- If your tax return has been selected for examination, then it is very likely that the IRS feels there is great potential to collect additional taxes from you. You will need experienced representation to ensure that you are prepared to deal with IRS Auditors
The IRS is very methodical when conducting Audit Examinations. Every question has a purpose and every answer has a repercussion. For this very reason it is always best to have experienced representation present to deal with Revenue Agents. We take audits personally and approach each engagement as an attack on our integrity. How you are represented may determine the outcome of the examination. Any Red Flag may not only prolong the examination but possibly result in additional tax being assessed and possibly designate other previously filed tax returns for examination as well. It is our job to make sure that the lowest amount of tax, if any, is assessed and to limit the scope of the examination specifically to its’ selected year and identified purpose. However, we should note that, most IRS audits often lead to other tax years and other tax deductions not originally stated in the audit letter, if any tax is assessed.
Audits are conducted for a variety of reasons and usually occur in one of several ways. The type of audit is usually insight to its severity. Generally there are 2 types of Audits:
- Correspondence Audits – Conducted entirely by mail, usually because of missing documents, W-2s or 1099s, in your tax return that IRS computers were unable to find. These usually include income items or interest expense items.
- Field Audits – Conducted by an IRS Agent, usually at the taxpayer’s home or place of business. Generally a field examination is the most comprehensive. The IRS will notify you of which tax return was selected for examination and what information and/or documents to have available.
If you’re being audited, don’t go it alone. It is always best to be represented by have someone whom knows your rights as a taxpayer and understands the tax laws. You do not have to have everything dictated to you because you’re intimidated by the IRS. We will fight for your rights.
Most Revenue agents are overworked and under pressure to close cases so they may not take the necessary steps to comprehensively review all appropriate documents. The Revenue Agent’s primary function is to ensure taxpayer’s are in compliance with the law. However compliance doesn’t include protecting tax payer’s rights and making sure every aspect of the tax laws that may be beneficial to taxpayer’s interest. For this reason you need someone s who has your best interests in mind and make sure that every favorable component of your examination is taken into consequence.
Revenue Agents are not under obligation to explain how furnished information or divulge the consequences if requested information of documents aren’t produced. Therefore if you do not understand the process you cannot determine whether or not erroneous conclusions were drawn from information provided or otherwise. Lack of representation could end of costing you thousands of dollars, especially when accumulated interest and penalties are assessed.Our Experienced agents are equipped to provide our clients with the knowledge of how best to manage their audit and limit their exposure. We will guide you through the process and explain each step as it occurs.
