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.
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