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Monday, November 30, 2020

Getting Audited by the IRS? Don't Panic. Here are the top things you need to know.

 


Taxes are like death, you cannot escape it. Come tax season, the average American often rushes to complete taxes. In most cases, many people file at the last minute. This can lead to errors.


If an error is present or the tax laws were not followed, the Internal Revenue Service (IRS) will be on your case. There is a chance that the IRS will conduct an audit of your taxes.


Have you learned you are getting audited by the IRS? It can be so overwhelming. Let our experts tell you where to start and guide you through what you need!


Things to Know If You Are Audited


If you learn the IRS will audit your taxes, don't panic. If you are being audited, it may not necessarily mean that there's a problem. The IRS uses different methods to select taxes for an audit.


If the IRS notifies you by mail that your taxes need an audit, you need to remain calm. Don't start biting off your nails. You should visit the IRS website to learn more about this process.


Types of Audits


There are different types of audits. The IRS can choose to conduct a correspondence audit. If this type of audit is conducted, the IRS will notify you via writing of the actions you will need to take to complete the audit.


If you are selected for an office audit, you will need to meet face-to-face with an auditor. This type of audit will take place at an IRS office and last anywhere between two to four hours, depending on the reason(s) of the audit.


A field audit consists of a visit to your place of business. An auditor will visit you for this purpose. This type of audit may last a day, or even longer.


Prepare for the Audit


Getting audited means that you have to prepare for it. When you are notified of an audit, carefully review the information the IRS provided you with.


The IRS will inform you of what needs to be reviewed. Prepare yourself by gathering all the documents (e.g., bank statements and proof of expenses) you used to complete your taxes. These will come in handy.


Know Your Rights


If your taxes are going to be audited, consider your rights as a taxpayer. During an audit, you have certain rights that you are entitled to. Do not let yourself be at the mercy of your auditor.


Seek Professional Help


One of the rights taxpayers have is the right to retain representation. If you are going to be audited consider hiring tax specialists. The Merit Tax Group has a group of tax specialists who can assist your through this process and help you survive the audit.


Take Action


If you learn that your taxes will be audited, you need to take action. You want to be ready for it. This guide will give you the knowledge needed to complete the audit.


If you would like to read more about finance, business products, and business-related services continue exploring the website.

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