Tax Audits Start with a Letter in the Mail
IRS Audits? Nothing seems to instill more fear in the heart of the taxpayer than that.
It all starts with a letter from the IRS. And you have to figure out what to do next.
The response you need to provide might be simple, or it might be very complex. We can help you interpret what the IRS is asking for so you can respond to the letter appropriately and put this behind you.
An IRS letter or notice maybe about a discrepancy or a balance due, or it could be the start of an audit. Examples of events that trigger an IRS notice include:
- The agency notices a discrepancy in any of your tax returns and needs an explanation.
- An amount paid is short or over what the IRS or another tax agency calculates as due.
- You have been selected for an IRS audit.
- You miss a payment deadline for taxes due.
- A deadline is missed for filing tax returns.
- Failure to respond to previous correspondence.
Please note: The IRS will never send you an email about any of the above situations. They always send physical letters. Therefore, if you get an email, it’s a scam.
HAVE ANY QUESTIONS?
Preparing for An Audit
If you’re being audited, you will need to get ready for your meeting. The IRS officer has probably asked for certain records. A tax professional can help you get ready and guide you as to what you should be willing to provide to the IRS and what you shouldn’t.
It is common for the IRS to ask for the QuickBooks file in case of a business tax audit. The problem is that QuickBooks will most probably contain multiple years of data, not just the years under audit. In such case, you only want to provide the IRS officer with the data for the year in question. This can be accomplished by creating a “QuickBooks period copy,” which is restricted to the years under audit. Otherwise, you will open yourself up to more scrutiny than you want.
Needless to say, an audit can be extremely nerve-wracking. You can get relief by having a tax professional on your side, walking you through the entire process.
Here are some of the options the IRS provides to taxpayers who owe money. Whether these are applicable to you depends on your circumstances.
How We Can Help
Massey and Company CPA in Atlanta, GA has represented taxpayers with audits before the IRS, and we can help you, too. We can:
- Respond professionally to any IRS correspondence you receive
- Contact the IRS on your behalf so that you don’t have to face them directly
- Represent your case before the IRS
- Fight for you on issues that come up, such as positions taken on tax returns
- Escalate your issue to other remedies if the solution feels unfair or extreme
Responding to an IRS notice starts with obtaining IRS transcripts. We have powerful software that takes weeks off the process of obtaining and interpreting transcripts. In addition, we have significant experience analyzing IRS transcripts to identify taxpayer opportunities. This benefit is unique among tax accountants.
The Statute of Limitations restricts the IRS in matters of tax audits and the collection of back taxes. Our firm has the experience and resources to analyze the statute of limitations in the most complex tax cases. Based on our experience, we know how to protect taxpayers by stopping the IRS from overstepping the statute of limitations.
We are also experienced with the Hobby Loss rules. These are favorite targets of IRS auditors when dealing with small business. We know how the hobby loss rules work and we can help you to navigate your way around the many obstacles that these rules contain.
Support for Surviving your IRS Audit
Contact us at our Atlanta office so we can help you navigate the IRS audit process to a satisfactory outcome. Tax audits are handled with the utmost confidentiality and privacy.