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How to Prepare for an IRS Tax Audit
Posted: Feb 01, 2015
Imagine getting an IRS Tax Audit notification in your mail, what will be your first reaction? Since the time of filing returns and paying taxes is nearing, it is wise to be prepared for Official Government Business call from the Internal Revenue Service.In many cases, the full-scale audit of tax returns is never even initiated; it could be just a routine call to inform you of an inaccuracy in the returns you filed. If the situation you are in, just calls for an official reply via email, it’s better. But if the notice is about an all-out audit of your previous tax returns, then you may need to draw out the big guns.
Maintain Good Records
The most obvious way to ensure that you don’t get in a tangle with tax authorities is to maintain timely and accurate tax records. Make it a habit to prepare and check your tax records in advance to avoid any miscalculation. When you have everything under control and you can account for every single return, it becomes easy deal with IRS. Put your bills, receipts, spreadsheets, and other records in a clean shape. It is also recommended to keep the tax returns of past three years as a backup.
Hire the Professionals
It is better to be safe than sorry. Hire IRS tax audit services in New York to deal with the intricacies of IRS workings. The sole purpose of a licensed tax professional, CPA or enrolled agent is to bail you out from such situation. He can ask you to sign an IRS power of attorney and then he will be responsible for handling all details regarding the audit of tax returns.
Start By Doing Your Homework
If there is a year in past which looks hazy in terms of accurate tax records, collect all the available data for that year. Look for the expenses and bills and do not hesitate to contact the respective establishments where you incurred those expenses. You can also talk with your acquaintances who have gone through the same drilling with IRS.
Do Not Over Talk
Always remember that IRS professionals are not there to hear your life stories. Do not, at any cost, reveal any additional information. If you find yourself surrounded by the tax authorities, it is best to let your tax agent handle it for you. At the end of it, the IRS tax audit does not always come down to owing an extra sum. It is seriously recommended to hire the services of a professional, though, as he will be able to tell you the accurate deductions and returns. And what do you know, it could turn out that IRS owes you money in refunds.
I am Kea Jones a Content Curator, New York based columnist who love to write about various buzz and current affairs in business world. Besides that I am also writting reviews for various new local business houses, products and services.