A tax audit is something that most individuals and businesses want to avoid. While there are many cases where the IRS is just checking up on something and you simply need to provide some form of paperwork to get the audit to go away, there are many times when the issue is more complex. If not taken care of properly, or you put the wrong information into your tax return, you could end up with a lengthy process that takes months or more to clear up and with owing a huge tax bill when it is all done. For the most part, taking care to put information correctly into your tax return and being careful with everything you claim will help to avoid an audit and keep things running smoothly.
If you are worried about a certain situation on your tax return causing issues or you are already facing an audit, make sure to find a tax professional in your area. They will be able to answer all of your questions about audits and will walk you through the process. Never try to put in information that is not true or you are uncertain about, talk to a tax professional and have the peace of mind knowing that your tax return is taken care of.
Types of Audits
There are several types of audits that can occur. The first one, and the one that is the most common, is that the IRS will simply send you a letter requesting that you submit some piece of information as confirmation. When this happens, it is usually just because the IRS is double checking things and as long as you can submit the paperwork, you are going to avoid issues and the case will be closed. If you receive this letter, make sure to submit the requested materials right away.
In some cases, the IRS will ask you to bring the information into your local office. This will take a little more work, but usually is not a big deal. Sometimes it is better to bring the information in because it is more personal and they don’t want it all going through the mail or getting intercepted. Again, get this information in as soon as possible to ensure that you are able to get the case closed.
Finally, there are times when the IRS is going to send someone to your home and business to perform the audit. This is the time when you will really need a tax professional on your side. The IRS has to pay a representative to come out and look through all this information in your home or business, so if they are sending this person out, they are pretty sure that they have some money owed to them. In these cases, have a professional by your side and even consider appointing them to speak on your behalf. Many individuals get nervous through this process and let out additional information that gets them into more trouble.
No matter what kind of audit you are going through, make sure that you have the right professional by your side through it all. This helps to ensure that you are getting through the process and that all of your questions are answered.
Avoiding an Audit
There are several things that you will be able to do to lessen your chances of dealing with an audit. The first one is to make sure you never claim anything that is not true on the tax return. This could be anything from putting in false numbers for your income to lower your tax bill to claiming deductions and credits that you do not qualify for. Many people assume that they will never be caught, but the IRS has several safe guards in place to avoid this and there are always whistleblowers who are going to tell on you.
In addition, many times someone will go through an audit process with the IRS because they just don’t understand how something works on the tax return. They may have innocently put some numbers in wrongly on the return and are now facing trouble. This is why a tax professional is able to help you out so much. They will be able to go through the form and ensure that you are getting everything in correctly to help get the most out of your deductions and even to avoid an audit later on.
Having Someone on Your Side
Going through a tax audit can be a scary situation. You are dealing with the IRS, a group that has gotten a bad reputation over the years and many people can get scared and make mistakes that will just worsen the situation. If you are worried about going through an audit or are already dealing with the situation, make sure to find a tax professional who will be able to help you through the whole process.
Hiring a tax professional is one of the best things that you can do, no matter your tax situation each year. Whether you are dealing with the issues of an audit or you just have some unique situations that you want to make sure you are filing correctly on the tax return, you want to have someone on your side to help out. Make sure to find the right tax professional in your area who will be able to help you out this tax season.
