The auditing process can be a scary one for a lot of people to deal with. They don’t want to hear back from the IRS and would rather just submit the tax return forms and have nothing else to say to the IRS until the next tax season. And for most people this is reality. But every once in a while, the IRS may decide it needs to do an audit on what you presented to them. While this mostly happens when there is a big red flag and something seems to be really off with your return, it is something that can also happen when they are just double checking or ensuring that no one is trying to hide stuff from the IRS.
If you are dealing with an audit, make sure that you work closely with your tax professional. Many of them will provide audit support in case the IRS does decide to look more closely at your tax return, although if you use the tax professional in the first place, it is unlikely that the audit is more than just a double check. Make sure to contact your tax professional right away when you receive an auditing notice to ensure that you are able to get it under control.
Submit the Requested Material
For the most part, when the IRS contacts you about an audit, the process is going to be pretty simple. You will just need to read the letter and figure out which form or forms they would like to see. The IRS will usually go through this process in the hopes of double checking that everything is in order and they don’t see this as something to worry about. You will just submit the required paperwork, either in person in the local offices or by submitting a copy through the mail. As soon as you get this part done, your audit will be over and you are free to go on with life.
In other cases, the audit is more severe. While most audits are more of quality control and a way to ensure that individuals are being honest, some of them are because some major red flags came up for the individual. If either of these occur to you, make sure to contact a tax professional in your area. They can answer your questions and be your representative through this whole process to bring you the best results possible.
Get Forms in Order
When the IRS mails you a letter, you should start to get your forms in order. The letter from the IRS is going to explain the process that will happen. They may just want the paperwork like requested above or they may want to come to your location to check things out. Whichever option they choose, they will inform you when they contact you through mail. If the IRS is planning on coming to your location, it is important to be as prepared as possible early on.
To start, make sure that all of your paperwork is in order. Bring out everything that you have for the past three to five years if possible and get it all labeled. This will ensure that everything is in one place and easy to access when the IRS representative shows up. It can save time and when the IRS agent is in and out without a lot of delay, you are going to avoid as many problems in the long run.
If you are unsure about how this process is supposed to work or the steps that you should take, make sure to contact a tax professional to help guide you through the whole process.
Contact Tax Professional
Depending on where the audit goes, you should have a tax professional on your side. Most audits are simply going to ask you to mail in a form or go to your nearest IRS location and bring the form or item in person. Once you do this, the audit is done and your case is closed. But in other times, the IRS is going to need some more information and they may wish to visit your home or your business to ensure that everything is running how you claim. This can be a scary process and you should make sure that your tax professional is by your side from the beginning.
Don’t try to handle this kind of audit on your own. The IRS is paying for someone to come and check out your claims, so they are pretty sure you are hiding or misrepresenting your information. The IRS officer is going to search pretty hard to find information and some simple words that you use could be turned against you. If you work with your tax professional from the start, you will have someone who can represent you the entire time, reducing the amount of information that the IRS officer will find out and ensuring that you get the best results at the end of the audit.
The auditing process can be a bit scary for the average taxpayer, but your tax professional is prepared to help you every step of the way. Make sure that you contact them at the beginning of the auditing process so they can walk you through the steps you should take to keep your trouble to a minimum. Contact your professional today to get started.
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