What Is the Purpose of an IRS Audit?
The goal of an audit is to find additional revenue for the government. An IRS auditor will likely request documentation to verify your expenses and deductions. The burden is on you (and your tax representative, if you have one) to produce the information. If you can’t, you’ll likely owe additional taxes plus any
accumulated interest.
How Does an Audit Work?
Audits typically start with the IRS asking for documents and other information that supports what you claimed on your tax returns. No matter how insignificant or innocent you believe the missing information to be, the IRS and state focus on information that gives them permission to disallow your expenses.
When an expense is disallowed, it turns into income on which you will owe taxes dating back to the year the tax return was due as well as penalties and interest that have accrued over the same time period. This is why tax audit representation is important to ensure you are protected. A tax professional with IRS audit experience will prepare your information in a well-organized and fully annotated package. Having the aid of a tax resolution professional during the audit process is one way to ensure that you keep as much of your hard-earned money as possible.
After the IRS reviews your documentation and the audit is complete, they present their findings and proposed results. In the event that their findings determine that you owe, your tax audit representation can help you contest the findings and file an official tax court petition on your behalf.
Get Tax Audit Representation Help Right Away
Don’t try to navigate the tax audit process on your own. The IRS has the upper hand, and it’s easy to make a costly mistake. If you are the subject of an audit, it’s important to seek tax audit representation as soon as possible. Your attorney can inform you of your rights and protect you from potentially having thousands of dollars or more added to your tax bill. Your audit representative will fight for your rights and ensure that you are treated fairly.