IRS Audit
Representation - IRS will audit
hundreds of thousands of individual tax returns this year. Although that
represents but a small percentage of all returns filed, this is little
consolation if your return is among those selected for audit. But with proper
preparation and planning, you should fare well.
The purpose of the audit is to verify items
reported on a tax return. The easiest way to survive a tax audit is to prepare
for one in advance. On an ongoing basis you should systematically maintain
documentation—invoices, bills, cancelled checks, receipts or other proof—for
all items to be reported on your tax return. Keep all your records in one place
and hold on to your calculations.
The government normally has three years within
which to conduct an audit, and often the audit won't begin until a year or more
after you file your return. So don't trust your memory. Leave a good trail. If
you have to go back to your records later, you should be able to backtrack all
of the entries on your return.
The scope of an audit depends on the
complexity of the return being examined. A return reflecting business or real
estate income and expenses is likely to take longer to audit than a return
reflecting only salary income. You can facilitate matters by having the
necessary records arranged in an orderly and systematic fashion for
presentation to the IRS agent. The typical IRS agent is experienced and knows
his job. Trying to outsmart the agent or sidestepping questions is likely to
create friction and raise suspicions in the agent's mind.
AB Tax Accounting Representation. Even if you
prepared your own return, it is often advisable to have a tax professional
represent you at an audit. Your representative knows what issues the IRS agent
is likely to focus on and can prepare accordingly. More importantly, a tax
professional knows that in many instances IRS agents will take a position (for
example, to disallow deduction of a certain type of expense) even though courts
and other authority have expressed a contrary opinion on the issue. Because the
representative knows and can point to the proper authority, the IRS agent may
be forced to throw in the towel.
If you are facing a tax audit or simply want
to improve your recordkeeping, AB Tax Accounting office stands ready to assist
you. Please call to set up an appointment to discuss this or any other aspect
of your taxes.
We're
here to help! For no obligation free consultation contact us today!
(651)
621-5777, (952) 583-9108, (612) 224-2476, (763) 269-5396
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