So the thing you’ve dreaded has happened: The IRS has targeted you for an audit. IRS audits can be terrifying, but with a skilled tax consultant on your side, they don’t have to be. Here’s how a tax audit defense consultant can help.
If the IRS has flagged your income tax return for an audit, your tax consultant will need to know why they’ve chosen you before building an audit defense strategy. Some common reasons for IRS audits include:
Sometimes, the IRS audits you even if you’ve done none of these things. The IRS randomly audits about 15,000 to 20,000 people a year, which means you could end up involved in an audit simply due to bad luck.
An IRS audit can feel threatening, but remember that you still have rights. The IRS can only conduct one inspection of your books without notice. Other rights include:
When the IRS has targeted you for an audit, you might feel like there’s no way to fight it. But a good tax consultant can employ a few strategies to minimize penalties, and they might even be able to help you avoid fees entirely.
One strategy is to prove that you accurately reported all of your income. Even if the IRS thinks you’ve underreported, if you have the documentation to back up your claims, you’ll probably be in the clear.
A tax consultant can also try to limit the scope of the audit. Some auditors request a generic list of information from you, and if you comply, it could open you up to more scrutiny. A tax consultant can ask that the auditor limits the scope to only the tax years and information relevant to your case.
One other strategy to try is appealing the auditor’s decision. If you’re unhappy with the outcome of an audit, you can request a new auditor to look over your case. Should this fail, you may need to go to tax court. A tax consultant can represent you if this happens.
If taxing authorities say you owe money after the auditing process, you don’t have to pay it back all at once. A tax consultant can help you set up an installment plan to pay a little at a time over up to 84 months.
If you’re unable to pay anything right now, your consultant can work with the IRS to set up an offer in compromise (OIC). With this agreement, the IRS gives you six to 24 months to pay what you owe.
When you’re facing an IRS audit, you don’t need to go through this stressful process alone. A skilled tax audit defense consultant from our firm will handle all communications with the IRS and represent you if your case goes to court.
To reach Levy & Associates Tax Consultants at our Delray Beach, FL, location, call (561) 933-6705. For our Lathrup Village, MI, office, call (313) 367-0985.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.