Have you received an IRS audit notice? While millions of taxpayers are audited every year, the concept that the IRS would like to take a closer look at your taxes can be nerve-wracking.
Even taxpayers that have nothing to worry about because they have filed their taxes in a timely and honest manner may be frightened of an impending IRS audit. Hiring a tax resolution company like Itri & Co for audit representations can help ease the anxiety of an IRS tax audit.
It is important to note that not all audits are done face-to-face; in fact, the majority of IRS audits are correspondence audits, done through the mail. Even if you have not been selected for a face-to-face audit, audit representations by Itri & Co help you assure that you are filling out additional paperwork completely and correctly, an important step to the audit process.
What will the IRS expect during an audit?
You will be notified of what documentation the IRS would like beforehand, so that you may prepare for a face-to-face meeting, or fill out correspondence audit paperwork. The IRS may be examining the entirety of your return, or they may only want clarification for a specific part of the return. For example, if you own a small business and have been continuously reporting a loss, and therefore no tax liability, for the business, the IRS may want further proof of your losses. This could include everything from rent receipts and utility statements, to a detailed record of customer billings.
Most audits end in a change to the return. This could be in favor of the taxpayer, or the IRS; the IRS does not necessarily target taxpayers that may owe them more money. You could walk away from an IRS audit being owed additional tax refund money.
While only about one percent of taxpayers are audited per year, you may find yourself in that minority. Instead of going through the stressful process of an IRS audit alone, seek audit representation from an experienced tax firm. Itri & Co has 20 years of experience with the IRS, and knows what to expect from an audit.