1,438 Views

If you’re reading this, chances are you’ve been selected for an IRS tax audit. But don’t panic! In most cases, an IRS audit is simply a routine review of your tax return to make sure everything is accurate. The IRS may select you for an audit for any number of reasons, but there are some common reasons why taxpayers are chosen:

– You made a maths error on your return

– You reported income from a source that the IRS has flagged for review

– You claimed a lot of deductions or credits that the IRS wants to verify

– Your return was selected randomly (this happens more often than you might think!)

If you’ve been selected for an audit, the first thing you should do is contact the IRS and schedule an appointment. An auditor will review your tax return and supporting documentation and may ask you questions about your income, deductions, and credits. Be prepared to provide documentation to support your claims. If the auditor finds that you owe additional taxes, you’ll be responsible for paying the amount due plus interest and penalties.

If you disagree with the auditor’s findings, you have the right to appeal. You can also request a formal hearing in front of the IRS Appeals Division.

Common Types of Tax Audits

There are three common types of tax audits that the IRS conducts: correspondence audits, office audits, and field audits.

Correspondence audits are the most common type of audit, accounting for more than 80% of all audits conducted by the IRS. These audits are conducted via mail and focus on specific aspects of your tax return. The IRS will notify you of the audit in a letter and will request specific documentation to support the claims made on your return.

Recover From Underreporting

Office audits are conducted at an IRS office and usually take place when there is something unusual about your tax return. For example, if you claim a lot of deductions or have income from sources that are not easily verifiable, you may be selected for an office audit. During an office audit, you will meet with an IRS agent who will review your return and supporting documentation.

Field audits are the least common type of audit, accounting for less than 2% of all audits conducted by the IRS. These audits are conducted at your home or place of business and usually involve a comprehensive review of your tax records. The IRS agent conducting the audit will ask to see all records related to your income, expenses, deductions, and credits.

No matter what type of audit you’re facing, it’s important to be prepared and to understand your rights as a taxpayer. If you’re selected for an audit, don’t panic – simply gather the required documentation and follow the instructions provided by the IRS.

What to Do if You Receive Notice of a Tax Audit

The first thing you should do if you receive notice of a tax audit is to contact a tax attorney. A tax attorney can help you understand the audit process and what your options are for defending yourself.

If you have been selected for an audit, the IRS will send you a notice in the mail. The notice will specify the type of audit being conducted and the years that are being audited.

You will need to gather all of your records for the years being audited. This includes receipts, bank statements, and any other documentation that will support your claims.

Once you have gathered your records, you will need to meet with the IRS agent assigned to your case. The agent will review your records and ask you questions about your deductions.

You have the right to have an attorney present during the audit. If you cannot afford an attorney, you may be able to get free legal assistance from a local Legal Aid office.

Tips and Strategies for Surviving Your Tax Audit

An IRS tax audit is when the IRS reviews your tax return to make sure everything is accurate. The IRS can audited your return for a number of reasons, but the most common reason is because you made a maths error.

If you are selected for an audit, the first thing you should do is not panic. The IRS does not select audits randomly, so there is usually a specific reason for why your return was chosen. Once you know why you are being audited, it will be easier to prepare for and defend yourself during the audit process.

Be honest with the tax audit defense lying or withholding information will only make the situation worse.

If you disagree with the auditor’s findings, be prepared to explain your position and provide supporting documentation. Remember to stay calm and polite throughout the entire process.

If you are unable to reach an agreement with the auditor, you have the right to appeal their decision.

No one likes going through a tax audit, but by following these tips and strategies, you can survive it unscathed!

Conclusion

An IRS Tax Audit can be a daunting experience, but with the right preparation and understanding of the process it is possible to successfully navigate through one. Make sure you take the time to understand exactly what an IRS Tax Audit entails and how to prepare for one, so that if you are ever faced with one then you will have all the knowledge needed to defend yourself. Following these steps should ensure that your audit goes as smoothly as possible and helps put your mind at ease.

Buying Property Previous post Benefits of Hiring a Real Estate Agent when Buying Property
Hotel Google Ads Next post What Are Hotel Google Ads And How Does It Works

Leave a Reply