IRS Audits and Louisville, KY
Metro Area: Louisville, Jefferson County, KY IN MSA
IRS audits can cause problems with any taxpayer’s life and it can also affect taxpayers from Louisville, Jefferson County area. If you have received a notice from the IRS stating that they are auditing your individual or business tax return, there is no need to panic, as you can still survive the audit. You just need to talk to your tax resolution expert or the IRS licensed enrolled agent to represent you and protect your rights before the IRS.
Kinds of Audits
There are four common kinds of IRS tax audits:
Correspondence Audit - it is a letter from the IRS service center. The center may request you to send copies of your canceled checks and/or receipts for verification of certain deductions on the audited tax return. This type of audit is done in case of small, simple tax returns.
Office audit - you will get the notice of an office audit through the mail. It will mention about certain items on the tax return in question and will request you or your representative to present substantial documents to the local IRS office. This audit is generally conducted for small, sole proprietorship businesses with sales under $500,000.
Field audit - in case of a field audit, the IRS revenue agent will personally call the owner/president/general partner. The IRS will notify you about the selection of the tax return for audit and examination. The revenue agent will come down to your place of business for the audit. It is done in case of incorporated businesses and partnerships.
It will have an initial telephone contact and the IRS agent may ask for the following:
Interview with the principals, a specific date to visit your business, finding out the location of the records, a list of records that are to be made available.
It is crucial that during a field audit, you have proper representation. The IRS agent is instructed to interview you and go to your business so that he/she can ask detailed questions about your business operations and see the business facility first hand. We handle IRS audits regularly call this a "fishing expedition". Your representative will attempt to buffer you from this type of questioning and probing. More than likely, your representative will attempt to have the audit conducted in his/her office rather than your business.
TCMP audit - Taxpayer Compliance Measurement Program audit. It is used to update the data used to write the DIF scoring program. In this audit, you will have to substantiate every part of the tax return with proper documentation.
Options for Handling an IRS Tax Audit
You can handle the IRS tax audit yourself or you can hire an expert IRS licensed enrolled agent to represent you. When you handle the IRS audit yourself, you actually might increase the risk of future IRS tax problems.
Get expert tax help today by calling Mike Habib, EA at 877-788-2937