A very small percentage of tax audits are random; the rest of the time, the IRS has very specific questions it wants answered, as well as requesting forms and receipts accordingly. After you have filed your tax return, the IRS generally will have 3 years to audit or examine your return. If very rare situation, IRS will go back more than 3 years to examine your returns. When your return is selected for examination or audit, IRS will request list of information to verify your income and/or all or some of the expenses and deductions claimed on your return.
The IRS manages audits either by mail or through an in-person interview to review your records. For Field audits, the interview may be at an IRS office (office audit) or at the taxpayer’s home, place of business, or accountant’s office (field audit). For service audits, the required documents or information should be sent to IRS service center by fax or mail.
It is very important that you as a taxpayer know and exercise your rights such as a right for a representation, right to appeal your disagreements both the IRS Office of Appeals and before the tax courts. You will have 30 days to respond to the IRS audit or examination notice. Prior to providing any documents, it is highly recommended to consult with a licensed tax professional who is qualified and has expertise to prepare you for the audit meeting, handle the IRS audit communication, and request for an appeal if necessary.
Having tax representation may be a wise decision. Having a tax team who is fully versed on your particular case may prove to save you thousands of dollars in back taxes. We provide only the necessary information to the tax agencies that will allow for the largest reduction in the amount owed. Call us today for a free consultation to learn how we can best represent your rights and interests in a tax audit.
If you owe $10,000 or more in back taxes to the State or IRS, the team of tax experts at Coast One Tax Group is here to help.