How to Handle a Business Audit

However, pursuant to the Taxpayer’s Bill of Rights, the taxpayer is not required to appear for an interview without a summons being issued. It appears that the agents have a number of standard questions that they are required to ask the taxpayer, such as “how much money do you have in your pocket,” “what is your net worth,” etc. Most of these questions seem to be totally irrelevant to any examination and a decision must be made based on the individual’s situation as to whether or not the agent will be permitted to interview the taxpayer.

An IRS attorney can help you navigate the complex aspects of a tax audit. You may be unsure of what the IRS is asking for, and how to provide them with adequate information. A skilled tax lawyer knows exactly what the IRS needs as evidence that your taxes are accurate. The obvious first step is to make your appointment as far in the future as you can.

Three Types of Audits

You would struggle to find a more knowledgeable, skilled, or experienced representative to assist you in getting the best outcomes for your audit, criminal tax investigation, appeal, or tax litigation. Furthermore, tax examiners might make a decision that is contradictory with the relevant facts and circumstances of your case, or it might be founded on incorrect legal reasoning.

W2, 1099 Int, 1099 Div, 1098, 1099-K, 1099-B etc… are matched to your return. Omitting one or more sources of taxable income will get you audited. Taxpayers are ordinarily selected for an audit irs audit based on statistical computerized analysis of their historical tax returns against a pool of similarly situated taxpayers. Every return analyzed by the IRS supercomputers receives a score.

TURBOTAX ONLINE GUARANTEES

Or for folks really strapped financially, an Offer in Compromise or Chapter 13 repayment plan may work. Typically, the IRS is asking for copies of things like bank and credit card statements, canceled checks, and real estate closing documents. Our website is filled with an in-depth discussion regarding specific dealings with the IRS.

• Double-check your math on your filing and make sure you include all the documentation required.
• Then, when you’re finished with your taxes, TurboTax double checks your return to ensure accuracy and avoid common audit triggers.
• The IRS may end up interpreting your situation differently than you, but there is no crime in having differences of opinion.
• Do not have the client or his or her employees present at any required business tour.
• If the Revenue Agent focuses heavily on the “intent” of the client in taking positions on a return or mentions a pattern of non-compliance on several tax returns.
• If you are considering making a payment under either of these options, you may want to consult with a qualified professional who can assist you in deciding whether and how to make a payment.

If you choose not to file an appeal with the IRS or you are unable to reach an agreement with the Appeals or Settlement Officer, you may appeal certain decisions in court. All changes to your tax return that you do not agree with. Call a dually licensed California Tax Attorney and CPA that could easily guide you through the various steps of a tax audit including an appeal or litigation if necessary.