AUDITS,
EXAMINATIONS, REPRESENTATION AND HEARINGS
IRS tax
examinations review your books and records and may
utilize audit techniques to verify the accuracy of
your return through third party affirmations.
Another word for examination is audit.
IRS tax
audits fall into one of three types that include
letter, office or field. The type of audit and
location where the audit is to occur indicates the
severity of IRS tax audits.
Examinations
can be triggered by a number of factors but generally
occur because your return is missing income
information reported to the service center, your
return contains red flags or inconsistencies, you were
selected at random or the service center has targeted
your industry for compliance testing.
LETTER
OR CORRESPONDENCE AUDITS
The most
common type of tax audits are correspondence or letter
audits that usually result because IRS database
information does not reconcile with the information
entered on a filed return. To correct the discrepancy
the IRS will send a letter to the taxpayer informing
the taxpayer that they have made changes to the return
or request additional documentation.
OFFICE
AUDITS
Notice of an Office
Audit will probably arrive by mail and identify
specific items on the return that are in question.
These IRS tax audits are conducted in the offices of
the Internal Revenue Service and are performed by a
Tax Examiner who will request various documents and
explanations of deductions reported on your return.
An Office Audit
requires that you our your tax representative
physically appear on a specific date and time at an
IRS service center.
FIELD
AUDITS
A field audit can take
place in your home, place of business, or the office
of your attorney, accountant, or enrolled agent.
These IRS tax audits are usually conducted if the
return is complicated or involves business
operations. The agent handling these types of
audits are normally seasoned veterans that have
received a great deal of training beyond the typical
Tax Examiner. These IRS tax examinations
essentially open your books and should therefore be
considered serious.
We suggest that it may
be wise to never make direct contact with an auditor
who has been trained to extract information from you
because anything you say that supports his/her
position can and likely will be used against you. Weigh the cost of
having tax representation against the amount of tax
in question before deciding to represent yourself.
In the event, that you
have decided to represent yourself at an audit bring
only the documents requested and answer their
questions but do not volunteer any information.
Make sure your records
are neat and in order, it will suggest that you are
a conscientious person.
In addition, act
politely and courteously at all times. Remember,
this individual is not responsible for your audit
and is only doing their job.
PROFESSIONAL
ASSISTANCE
Taxation
is very complicated and you will likely benefit from
having an expert on your side that knows the
consequences of a statement before it is made.
You have the right to
chose IRS tax representation of your choice and the
IRS will accommodate your choice by transferring your
case to another area. It is wise to separate an
auditor to the extent possible from immediate access,
to both you and documentation to the extent possible.
By using an intermediary issues may be postponed
for future debate and harmful interjection can be
avoided.
OUR
TAX SERVICES
Our
years
of experience with IRS tax audits levels the
playing field. We know what the IRS examiner will
do, what he/she will look for and how to prepare
before engagement. We speak the same language as
the Examiner, are not intimidated by either the
Examiner or the IRS tax examinations process and know
what to say and how to say it, to effectively
communicate your position.
We are
also QuickBooks proficient and provide accounting
services nationwide by remote access and therefore
have the capacity to review your books and build a
defense before engagement.
OUR
PRIVACY POLICY
Our
organizational privacy
and security policies guarantee that "only"
contact initiated by you and required to complete the
income tax services we have been commissioned to
perform or to provide guidance sought will occur at
any time, now or in the future
