You just received a notice that your taxes are being audited: what does this mean? A tax audit is an accounting procedure where the IRS examines your individual or business financial records to ensure you filed your tax return accurately. If you prove that your initial return was complete and correct, you won’t be asked anything further. But if the IRS finds errors or purposeful misreporting, you’ll have to pay the recalculated return amount and any interest penalties. If you receive an audit notice, we are here to assist you.
First, we will meet with you to review the audit letter and determine what parts of your return are under review, not all audits review the entire return. As review the audit letter and your return we will be planning a strategy as to how we will prepare and respond to the audit request. You will be asked to sign a Power of Attorney to allow us to speak directly to the IRS agents on your behalf. We know you have a business daily schedule so we will use are ability to work directly with the IRS to reduce the stress on your life.
There are varying types of audits, each type has unique demands:
Correspondence Audit: the IRS service center asks you for more information concerning a part of your tax return. The IRS is generally seeking receipts, checks and similar information. In this situation, we assist you prepare the documents to be submitted and assist in writing the cover letter.
Office Audit: the IRS Service Center asks you to bring certain documents in to your local IRS office. The audit is conducted there. In this situation, we will work with you to prepare for the visit and we will accompany you to the meeting and assist in responding to the examiner.
Field Audit: an IRS agent comes to your place of business to conduct the audit in person. In this situation, we will work with you to prepare for the visit and we will be at the location during the audit.
Taxpayer Compliance Measurement Program Audit: this is the most extensive type of audit, where every part of your tax return must be substantiated by documents, including birth and marriage certificates. The primary purpose of this audit is to update the data used to write the computer scoring program. In this situation, we will help you prepare and will be with you during the examination.