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Help With Your IRS Tax Audit
Although it’s not the end of the world, being subject to an IRS audit can seem somewhat burdensome and, to some degree, downright scary. To increase the probability of a better outcome and acquire peace of mind, you can have a tax attorney-CPA-IRS EA, Will Harmon (Will), to represent you throughout the audit. In addition to being a tax expert, Will has an audit background.
If you are selected for an IRS audit, it may leave you wondering about the outcome and why the IRS is choosing you. You may then wonder if there are errors on your tax returns and, if so, how this will impact you. For most people, no matter what brought about the audit, the idea of being audited is not pleasant. Even with this unpleasantry, it is imperative to put this into perspective.
Recognizing that the IRS focuses on collecting money versus going after you is critical. It is the overall process that needs to be addressed. The IRS is looking for mistakes and will most likely find them if they exist on your tax returns. The Internal Revenue Code (IRC) is where most tax law comes from and is used to determine the correct tax application to follow for tax returns. However, the IRS must follow procedural guidelines when enforcing the IRC framework. These procedural guidelines are listed within the Internal Revenue Manual (IRM). The IRM is the IRS’s playbook. Having a working knowledge of the IRM is highly beneficial since you will know exactly where everything falls. Therefore, a tax attorney, CPA-IRS EA, who is very familiar with the IRC & IRM, representing you and your rights during the process is an excellent way to protect yourself during this strenuous time.
What Happens During an IRS Audit?
The purpose of an IRS audit is to confirm that you have correctly prepared your tax returns following tax laws and paying the correct tax owed. The auditors verify your tax data by going through supporting financial records. They will trace and vouch for information in addition to performing tax calculations. The audit itself will generally go well if you provide the auditors with timely and complete information when requested.
There are various reasons the IRS may choose to audit your tax returns, and it does not necessarily mean the IRS suspects foul play on your part. There are many factors the IRS uses for selection purposes, and not all are from “flagged” items, which occur when potential discrepancies such as excessive write-offs compared with income, unreported earnings, refundable tax credits, and other items which the reported amounts fall outside out of normal range for that type. In addition, the IRS automatically audits a portion of the taxpaying public every year who were selected purely as a matter of chance based on IRS random selection software.
Generally, most people emerge from IRS audits okay. In some cases, it will be discovered that the reported tax returns need to be revised, resulting in additional taxes due.
How Does the IRS Facilitate an Audit?
It will start with the IRS contacting you through the mail regarding an upcoming audit and how it will be facilitated, along with the required information. There are several methods they could choose from to conduct the audit, either by mail or in person.
If the IRS requests it by mail, you will need to mail the IRS-requested documents to an address specified on the request. Typically, these documents include income records, proof of other expenses, and itemized deductions. If you feel there are too many documents to send in the mail, you can request an in-person audit.
An IRS in-person audit could occur at several locations, either at your home or business or at an IRS field office.
How May a Tax Attorney CPA Assist You with an IRS Audit?
Your tax attorney-CPA will assist throughout the audit by gathering requested information and helping you understand all the audit components. Your attorney will seek to ensure that your taxpayer rights are not overlooked.
Here are some fundamental taxpayer rights to keep in mind during an IRS audit:
- The right to representation. A CPA, EA, or an Attorney can represent you in front of the IRS.
- The right to understand why you’re being audited, the purpose the IRS uses the information for, and the ramifications of failing to provide the requested information.
- The right to be treated professionally by IRS workers.
- The right to confidentiality and privacy about your tax matters.
- The right to appeal any IRS decisions you disagree with, either within the IRS’s system of appeals or through the courts.
If your rights have been infringed upon in any way or you need assistance with your IRS audit, give Harmon Resolution, LLC a call Today.
Have a Tax Lawyer CPA Provide Vital IRS Audit Assistance
Arming yourself with a CPA-IRS EA who is a trained auditor and expert in business reporting will help you with your IRS tax audit facilitation and provide a correct review of your income tax returns. Combine this with having an attorney to ensure your rights are being looked after, and you will be less stressed knowing that you have covered all your bases.
Your attorney CPA-IRS EA will assist you in gathering all the required information the IRS seeks. You will not be alone and won’t feel so nervous because you will have a tax expert guiding you throughout this process.