Every business is now preparing for the taxes and tax returns. You may do all the paperwork by yourself, online or manually, or hire a professional tax audit expert from audit services in Texas. But, sometimes the IRS intentionally or randomly may choose an IRS Audit Expert to check the tax returns you filed.
So what to do in such a condition?
If you are the chosen one then the best thing to do is hire professional Tax Audit Experts in Dallas, TX, to help you go through the initial documents to see everything is in place and in case of any ambiguity how you can resolve it. But remember, do not hurry in the process. You must fulfill all the requirements and assist the IRS audit expert in order to avoid any penalty charges (big time). You can easily get assistance to help you with the tax audit.
About the IRS Audits
In case a company’s tax return is audited by the IRS, all the income, deduction, and credits will be included in the IRS audits.
The IRS Audits are carefully drafted. They select returns that consist of errors or are prepared on the complex criteria. Usually, the time slot for an IRS audit is three years after you file for a return. Most tax audits begin within the same year and are finished in more than a year.
When something on your return is out of the ordinary, it can trigger a response from the IRS in the form of an audit. An IRS audit can happen;
If some red flags are detected due to a computer program flagging abnormalities in your return,
If you report abnormally high/low income,
If you claimed a deduction that is frequently misused or has errors in it.
Tax audit is a stressful procedure. But there are steps you can take, like hiring an audit expert, to minimize the pressure and ensure everything goes smoothly.
How are IRS Audit Experts Helpful?
The professional IRS expert helps small businesses to navigate through the IRS audit and communicate with government professionals.
For instance, you can make an appointment with My Count Solutions to discuss the IRS audit strategy with an IRS audit expert appointed by the service provider.
The role of the audit expert hired by the tax consultancy is to ensure to prepare the client for the audit.
Some of the essential items required for the appointment includes;
Copy of IRS audit letter and the FORMS 4564 attached with it.
The required information/document requested by the IRS.
Tax return copy.
Return copies of the past 2 years before the return.
Document copies (if any) asked by the auditors.
Document showing any prior audits (if any).
Copy of IRS letter for the tax year in question.
Providing the right information means that the process to ensure audit in a safe way can begin.
Company’s Rights During the IRS Audit Process
You must be able to smoothly manage the audit process. So how does the process begin?
Mail notification is sent to the audited company. This is the first contact made by the IRS. the sent letter contains all the details and steps you need to take alongside the deadline.
Once the mail is replied, three outcomes are to be expected;
The IRS accepts your explanation and supporting documents. No alterations are made to the documents.
IRS proposes certain changes. You need to sign a file to agree to the suggested changes.
Challenge the evaluation and suggested changes made by IRS.
Note: In the third case scenario, it is highly recommended to contact an IRS manager to resolve the issue.
Rights Issued by IRS to Taxpayers
At the time of notification, taxpayers are also provided a set of rights they are entitled to. This includes;
To be courteous and professional towards the agency’s employees.
Privy to confidentiality and privacy about tax issues.
Legal representation rights are authorized.
Right to learn the reason behind requested information and in case of non-compliance.
IRS Audit Expert Help
Receiving the mail notification by the IRS Expert can be intimidating for some, but remember it is about the possible errors you made in tax return files. You can obtain professional assistance from My Counts Solution easily.
But you still need to decide whether you want help from us, an IRS Audit help or if you still want to do it all your own.
Tax Audit Experts
If you want you can look into My Counts Solution to help prepare your taxes in advance. Or even help you prepare the tax audits when required with IRS Experts. Being one of the best Audit Services in Texas, you can count on our tax consultants for professional help and a detailed report about the dos and don’ts when filling the form and so on.
One of the tax audit experts will review your IRS notice. After reviewing he will give you a brief about the available slots you can use to resolve it. If needed My Count Solutions can also handle the tax audit paperwork too and deliver professional assistance.
IRS Audit Representation
In case you are charged with a severe crime or a heavy fine then IRS will indicate the nature of the error in your tax returns.
It’s best to hire a professional tax consultant or a qualified tax lawyer in case you have to deal with tax evasion or fraud issues. With the help of a tax professional, you might be able to negotiate the situation and communicate the right way with the IRS Audit Expert. The tax professional you hired will negotiate on your behalf.
In case you are not so worried about the IRS notice then you can utilize the online tools and the self-help tools. You will need to conduct thorough research and find detailed IRS guides and articles that contain information about the tax problems too. Go through the files so that you might be able to find the answers you are looking for.
You may be able to provide the verification for accurate documents without needing to hire the help of a professional tax expert.
How to Address an IRS Audit Professionally?
Be Clear about the Tax Audit Scope
If you have received the mail audits they are limited to a few items on the letter.
In case it’s an office and field audit, more paperwork is required. You need to collect the documents/information requested by the IRS and prepare the answer in-depth about the finances and expenses.
You will need to hire IRS audit experts who can guide you about the auditing procedure and can advocate the tax returns positions on the client’s behalf.
Response to IRS Questions
In the case of the mail audit, you need to prepare the response about the questioned items mentioned in the document/letter as received.
In case of office/field audits, you will need help from a professional IRS expert to gather the requested information and prepare for the questions like unexplained bank deposits or income. Also, questions about jobs, family, and anything outside of business can be asked.
In case you do not have the required documents then you need to attain them from third parties resources (you can even use an affidavit).
The Appeal of Appropriate Venue in Case of Disputed Results
After the audit within 30 days, you can appeal with the IRS Office of Appeals. Just sent the letter of Statutory Notice of Deficiency. This letter allows the petition of the US Tax Court.
Taxpayers may overlook the mail audits with the proposed adjustments, however, an IRS audit expert will not ignore even a minute detail or they will lose the ability to appeal to audit findings within the IRS.
We help the clients to prepare their taxes and file returns by appointing excellent tax consultants. The professionals have just the right expertise and can help you throughout the tax filings. Complete guidance and discussion are delivered to the clients as per requirement. You can contact us for further details.