Audit & Examination

Audits And Examinations

There are few phrases in the English language that are as terrifying as “IRS Audit”, and for good reason. An IRS audit can mean a lot of hours and a lot of money down the drain depending on your situation. An audit can mean a lot of work for you and, if there are any discrepancies in your taxes, a large fine of back taxes, but it doesn’t have to be that way. With our help, you can make it through an IRS audit with minimal trouble. We may not be able to make the money you owe disappear, but we can get you through as painlessly as possible. Before we get into that, let’s talk about what an audit really is.

What Is An IRS Audit?
An IRS audit (sometimes called an IRS examination) is where the IRS flags your return for review. If that happens, you will need to provide the IRS with information about your income and other financials through the mail or in an interview with an official IRS officer. (NOTE: the IRS has said that they will always contact you by mail first– DO NOT believe anyone on the phone that says they are from the IRS unless you have confirmed their legitimacy).

What Does It Mean If I’m Audited?
It is important to know that if you are selected for examination by the IRS, it doesn’t mean that you have done anything illegal or that you have made an error. The IRS has even stated that some examinations find nothing wrong with a person’s returns and sometimes they even end up getting more money back because they missed an exemption or two. So, you aren’t going to be treated like a criminal just because you have been selected.

How Are Auditees Chosen?
The IRS has explained that they choose to examine returns for a few different reasons. According to their website, they select people who are suspected or known to be involved in some sort of tax evasion; people whose returns have been flagged by the computer to have the potential for error; as well as people whose information does not add up (like if your W-2 doesn’t match up with the amount of income you declared). Corporations and other businesses are likely to be targeted for auditing as well, sometimes even more often than individuals. If you own a business, especially one that makes a decent amount of money every year, you have a very high likelihood of being selected.

Your Rights If You Are Audited
As with most other dealings with the government, it is important to remember your rights. When dealing with the IRS (according to their own website) you have the right to be treated fairly by the IRS and its employees; the right to privacy during and after the process; the right to inquire about why the IRS is asking about your financial information, how they plan to use said information, and so on and so forth; the right to appeal decisions made; and lastly, the right to representation by yourself, or an authorized person or organization like Idaho Tax Services.

How A Tax Professional Can Help You During An Audit
An audit can be frustrating, as you are most likely aware of. As tax professionals, we know what the IRS is looking for, how to handle it all, and what to do to get everything squared away for you. Our job is to take that burden off your shoulders. Not to mention, as we mentioned earlier, you have the right to a representative. So, why not use that right and make sure everything gets properly taken care of?