The simple mention of an IRS investigation or audit can disturb even the most honest taxpayers. Even if you have done your best to get your taxes right, you may still find yourself facing an IRS audit. If you ever find yourself in such a situation, it is important to understand the process as well as know your rights, responsibilities, and what you need to do if you are accused of any wrongdoing. In this blog post, we discuss all you need to know about IRS audits. Read on.
An Audit is Not an Accusation
It is important to understand that if your tax returns are being audited, it does not mean that you are being accused of a crime. The IRS can conduct an audit of your tax return just to confirm its accuracy. It is expected from you to demonstrate that you have accurately reported all your income and confirm your eligibility for all the credits and deductions that you have claimed. Generally, the IRS must complete an audit within a timeframe of three years of filing a tax return.
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There are Different Types of Audits
Remember, not every audit is the same. There are different types of audits conducted by the IRS including correspondence audits, office audits, and field audits. In a correspondence audit, the IRS may ask you to mail information related to a simple mistake that you may have made in your return. An office audit requires you to bring all your tax records to the offices of the IRS for review. When a field audit is conducted, an auditor will visit your home or business and review the paperwork and tax records to verify their accuracy.
It Helps to Know Your Rights
You can exercise your rights when you are facing an IRS audit. During an audit you have right to:
- An explanation of the audit process.
- Be represented by an attorney, enrolled agent or a CPA
- Claim extra deductions that you skipped when originally filed your tax returns
- Request an explanation from the national office of the IRS in the event of a technical issue during an audit.
You Must Hire a Legal Representative
When you are facing an audit, it is recommended that you hire a professional tax advisor or a tax attorney that can help you with any type of IRS tax investigation. A tax attorney has the experience to handle such situations and seek a favorable outcome for you. They will help you provide correct information to the IRS during an audit and enforce your rights. Additionally, if you are not satisfied by the outcome of the audit, your tax attorney can also help you file an appeal.
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The Last Word
The IRS is very strict regarding tax violations and financial frauds and has authority to take action against offenders. It is, therefore, important to make sure that you don’t get involved in any fraudulent financial activities to avoid an IRS investigation or audit. In the event you are facing an audit, you must immediately seek IRS problem resolution from the team of tax resolution attorneys at the Law Offices of Nick Nemeth, PLLC. Our team of experienced attorneys has expertise in helping taxpayers get favorable outcomes to a variety of tax issues including IRS tax investigations. To speak with one of our Dallas tax attorneys, call 972-635-4098, or email jamie@myIRSteam.com. You can also fill out our contact form.