Is an IRS Tax Audit in Your Future?
Does the thought of an IRS tax audit make you quiver? The thought has this effect on lots of taxpayers, even those who file their tax returns on time. But why? Maybe it’s because of the IRS’ authority to order an IRS tax audit for up to seven years after filing a tax return. Or maybe it’s because of the agency’s far-reaching collection power. Whatever the reason, here’s something you should know:
The IRS has been on a hiring spree, and has added more revenue agents to its ranks. Those extra agents will enable the IRS to audit even more taxpayers than it already does. Will you be one of them?Software flags those most worthy
Today, every tax return the IRS receives is first run through software that assigns it a score. That score plays a role in determining which tax returns are worth pursing for an audit and which are not. Of course, other factors besides the score may trigger an IRS tax audit. And that uncertainty is likely the reason why the mere thought of getting audited triggers so much anxiety.
The easiest way to alleviate that anxiety is to always file your income tax returns accurately and on time. That doesn’t guarantee you won’t get audited, but doing so shouldn’t raise any red flags. What will raise flags and trigger an audit are miscalculations or the appearance that your expenses exceed income. Something else that can trigger an audit is incomplete information or missing attachments.
If you ever do get the dreaded IRS tax audit notification, don’t panic. If you’ve kept good tax records and you know where to find them, the ability to review them often clears up whatever confusion triggered the audit.
If you can’t provide the proof that the revenue agent wants, you’ll have trouble supporting the information reported on your tax return. At that point, the IRS could decide to impose an additional tax, penalties and interest on the amount in question. Although you have a right as a taxpayer to due process, fairness and representation, you also have a responsibility as a taxpayer to provide proof of any issues in question.
If you’ve been subjected to an IRS tax audit, or fear you might, the first question you need to ask is : Is this a process I want to go through alone? Remember, sometimes clearing up an IRS tax audit issue is as simple as providing the missing paperwork. If that’s the case, you either can or you can’t. If you can, give it a try. If you can’t, or you don’t want to, or it’s not that simple and the revenue agent wants to conduct a home or office audit, you should seek assistance from a tax professional – without delay. Once an additional tax has been imposed, penalties and interest on that amount will accrue daily.Don’t let that happen
Hiring a professional to deal with the fallout of your IRS tax audit might not seem like a smart financial decision, especially if the IRS claims you owe a lot. But think about this. All of those newly-hired revenue agents are specially trained in investigative techniques that get answers, or worse, uncover issues that land you in potentially hotter water.
Our firm led by Enrolled Agent Mike Habib know those techniques, and can offer you advice on what to do and say. Oftentimes, having an enrolled agent on your side means you won’t even have to interact with the IRS, either during or after the IRS tax audit. Upon your approval, the enrolled agent can communicate with the IRS on your behalf.
After many years of helping taxpayers and business owners in all 50 states resolve their tax problems, enrolled agent Mike Habib is ready – and qualified – to help you, too. Mr. Habib and his team bring a wealth of financial and tax experience to the tax resolution arena and can represent you before the IRS in regards to your tax audit. We know the most effective ways to handle every type of IRS tax audit. We’ll stand by you and guide you every step of the way.
With that kind of help, your chances of ending up with an IRS tax audit decision that’s fair, that you can live with, and most importantly – that you can afford, are greatly increased. Contact Enrolled Agent Mike Habib today at 818-649-8552.