Audits are something that we all fear. The word itself sends chills down the spine. While chances are slim that you will ever be audited, it is good to know how to deal with one if you ever receive the dreaded letter from the IRS.
According to tax preparation specialists there is really little chance that most people will ever be targeted for an audit. The vast majority of the time self-employed individuals and people who have unusually large tax write offs are scoped out by the IRS most.
If you ever receive a letter from the IRS stating that you are being audited, make sure that you follow the advice below:
1. Respond by the due date. This is one of the most important things that you need to do. If you do not respond in time your case will go to collections. If your case goes to collections you will have very little room to negotiate. If you believe that you will not be able to respond in time then you must request a postponement before the specified date on your letter.
2. Hire professional help. If the IRS mandates that you meet with them face-to-face then it is highly suggested that you hire a CPA to accompany you. When the IRS requires that you come in face-to-face it is for substantial reasons. The majority of audits are actually handled through mail. Typically the IRS will request certain documentation pertaining to specific parts of your tax return and the documents can be mailed in. In either of these cases, if you had someone else prepare your taxes for you it is best to consult with them. Plus, your fees may have included some type of coverage in the case of an audit.
3. Do not give too must information. If you are in a face-to-face meeting with the IRS it is suggested that you stay tight lipped. You never want to slip and possibly give away potentially incriminating information. This is also true if documentation is requested through mail. Only send information that is requested of you. You never know when you are giving away financial or other details that could cause your examiner to expand your investigation.
For all of your Utah tax preparation needs consult with a Sandy CPA firm with 30 years of experience. Our friendly, professional, and highly knowledgeable accountants have years of experience performing error proof tax returns.
Article Source: http://EzineArticles.com/?expert=Lexe_Charleston
