One thing that many taxpayers dread going through is a tax audit ordered by the IRS. Finding out that you are being subjected to an audit can be nerve-wracking and stressful. You may be asking yourself about what errors or actions you committed to catch the IRS’ attention. If you are selected for a tax audit, here is what you can expect from the process.
Why was I chosen for an audit?
There are a number of reasons why the IRS chose you to be audited. It commonly occurs after a person files a tax return that is flagged as suspicious. It can also happen if an issue was raised when a third party reported a discrepancy in their records that doesn’t match what you reported.
How does a tax audit work?
Audits are either done through mail, in person at home, in your business, or IRS field office. Make sure you are prepared as possible so that you can get through your audit without any issues. Follow these tips so that you have an idea of what to expect:
Gather all your financial records
Keep all your records and documents for the past three to five years. Types of documents you should have include pay stubs, invoices, receipts, tax forms, bank account statements, and credit card statements. Have all your items organized and ready to go well ahead of time so that you are not scrambling for your items.
Understand your rights
After learning about the basics of a tax audit, take the time to learn your rights. A tax audit lawyer like one from Crepeau Mourges can provide you an in-depth explanation of your rights and the steps you can take to protect them.
What if I can’t pay?
After an audit is complete, you may have additional penalties added to your tax bill. There are several options if you are not able to pay. You can work with the IRS to negotiate a monthly payment plan or ask for a due date extension.
Get Trusted Legal Assistance Today
An IRS tax audit may induce a lot of anxiety, but you can obtain much needed assistance. The right preparations allows the entire process to go much more efficiently and makes it much less stressful. Fortunately, you don’t have to undergo the audit process without help. Hire a tax lawyer to evaluate your financial situation if you are chosen for a tax audit. Schedule a consultation with a tax lawyer now for assistance preparing for an audit.