When the Internal Revenue Service or IRS issues its intention to audit your financial capabilities, it can be a very difficult situation. A tax audit is any form of communication, whether through letters or telephone calls, which tells you that the IRS intends to investigate all the items in your income tax forms.
In most cases, an IRS audit strikes fear in taxpayers because of the uncertainty and stress it will cause. Thankfully you can apply for sufficient protection with an IRS audit defense.
Your Quick Response to an IRS Audit
Although an IRS audit may seem intimidating, it should be done at a time and place that is convenient to you. This allows you ample room to prepare for the auditing process. It is important to note that there are three types of audits:
- Office audit
- Correspondence audit
- Home audit
Before you allow the audit, you should carefully study your tax records and tax returns in question. You should find out if there is a basis for the audit. Moreover, study your rights and protection when it comes to an IRS audit.
During an actual audit, you can request the investigator to strike out irrelevant issues pertaining to your possible tax liabilities.
Steps to Start Your IRS Audit Defense
You do not have to feel helpless when confounded with an IRS audit. There are many resources at your disposal to help you cope up effortlessly with this situation.
It is a huge plus if you can get the services of a tax professional such as a tax attorney who has experience with tax audits. It may prove to be a better investment compared to the amount of money you may lose with an increased assessment of tax liabilities.
With the help of a tax professional, you don’t have to endure direct communication with the IRS. All forms of communication about your audit will be handled on your behalf.
IRS Audit Myths
With the immediate perception that an IRS audit is intimidating, taxpayers are typically struck with fear and a feeling of being powerless when confronted with an actual IRS audit. But there are typical myths when it comes to IRS audit myths that can help you:
- It is not true that taxpayers are powerless and should pointlessly follow every declaration and order of the IRS. You have the right to ask questions and to assert your rights.
- It is not true that you cannot claim a deduction without a receipt. In fact, you can respectfully challenge the decisions and findings of an IRS auditor.
- It is not true that you are compelled to provide the IRS auditor everything they want to know about your personal finances. As a rule of thumb, always ask the auditor the purpose of every probing question they ask.
Right to Appeal the Results of an IRS Audit
The results of an IRS audit are not set in stone. If it appears unfair to you, you can exercise your Right of Appeal.
An IRS tax audit can be very problematic for people with tax deficiencies. However, tax problems always have a solution. A successful IRS tax audit defense will help strengthen your financial situation towards stability in the future.