Behind the IRS audits

by Lilly on January 2, 2013

(US Law) An IRS audit is an investigation of your finances and tax returns by US authorities in order to verify the correct amount of your taxes. IRS audit can be intimidating for most of the people. You never know when IRS is going to request your documents and start an investigation, that’s why you should be very precise with your paperwork. It might be unpredictable and you might be unprepared even though you filed all the papers correctly. In this case you should allow our IRS Audit Defense team to represent you and your business.

There are different reasons behind the tax audit:

  • IRS chose to investigate you randomly, without any particular reason;
  • You will get investigated if your payer records don’t match the provided information;
  • Your finances might get investigated if your business partner was selected for IRS audit.

Here are some basic facts about IRS audit:

  • Auditors always look for mistakes in your paperwork. That’s why you need to eliminate them first. Professional assistance of an experienced tax preparer would help you in correcting any possible errors in you papers.
  • Go through your old paperwork. You need to manage and store your documents in a professional way. Nothing should be lost; everything should be in order.

Reasons why you should ask for a professional help

  • IRS audit agents might ask you questions that you wouldn’t know how to answer. Their questioning style would be intimidating, confusing and puzzling. Even though you know you did not do anything wrong, you might find yourself in a tricky situation.
  • The audit agent would eventually ask for your full bank history, including your bank statements, utility bills, cancelled payments, cheques, etc. Remember, that IRS is entitled to get only certain information, not all of it. Talk to your tax advisor and prepare the papers together. If you send all the information it might hurt you.

In some cases auditors would come to your house for an investigation. IRS officers would look for items that are not indicated on your tax return. Obviously if you have a brand new flat screen TV, Italian furniture, a new BMW and claim that you earn only $30,000, the IRS would not believe you. I bet a lot of people would not enjoy this situation and would do anything to prevent it. That’s why you should contact a professional who would help you with your paperwork.

Even if you did not receive any letter informing you of the upcoming tax examination, it does not mean it would not happen in the future. IRS Audit Defense team would solve any tax issues before they even appear.

Handling IRS audit on your own is risky as you might lack experience and knowledge of the system and tax legislation. In case you got contacted by an IRS official let her/him know that your representative would contact IRS on your behalf. It is very important as any provided information might be used against you during the investigation.



I'm Lilly Sheperd, an occasional guest-blogger and a full time freelance communication consultant. When not blogging, I like to travel and read a lot, especially about education and law.

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