Forensic Accountant
When Will You Need an IRS Audit Assistance?
Whether you’re an entrepreneur, a freelancer, or simply an employed individual who does their tax returns every year, getting notified of the fact that you are up for a an IRS audit can cause some initial anxiety in most people who get it. However, getting notified by the IRS for an audit need not be a cause for alarm once you understand how the process works, and which kinds of people are available to provide you with Boca Raton IRS audit assistance.
What Exactly is an IRS Audit?
An IRS audit is basically a review of a business or an individual’s financial documents to ensure that the information you reported on your returns were accurate. An IRS audit is not necessarily designed to be a witch hunt of tax evaders. Rather, it is merely a measure to ensure the accuracy of reported information. Locally, the IRS follows the same protocol, and are not any stricter or looser than other IRS offices. If some errors were confirmed in the audit, this doesn’t necessarily mean you’ll be punished for it. It just means you will have to pay extra (if your returns were understated).
Why Would You Be Selected for an Audit?
The IRS has three methods, among other methods of selecting which people or businesses to audit. The first and most common method is simply random selection. The second method is document matching, where they check to see if your records and the information you reported on your returns match. If they don’t, you may be called for an audit to clarify a few things. The third method is related examinations. This basically means that an individual or entity that you made a transaction with is currently being audited, and your information has to be audited as well in order for their audit to be resolved.
What Help is Available for Me?
For people who have been selected for an audit but aren’t confident about their tax accounting knowledge, they often find it helpful to hire a CPA to help them prepare the necessary documents (and even arguments) for a meeting with the Boca Raton IRS. Audit assistance can take the form of a mock examination of your returns, preparing the necessary documentation for the meeting, and representing you during the audit. For the Boca Raton IRS, audit assistance is no issue to them since it’s your right to have one. If you hired a personal tax CPA to prepare your returns, it might be useful to have the same accountant to help you with the audit.
If you received an IRS or state audit letter, contact Gary Kaplan, CPA, to see how your case can be helped.
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