Federal Tax Audits
Federal Tax Audit
The term ‘Federal Tax Audit’ can make people very nervous. Most people hear the word, and their anxiety automatically increases. However, a little more understanding about the term and some workings of IRS can make the process exponentially easier. Audits can be of very types. Some can be breezy, while others can be quite taxing. The type of audit can easily help determine the effort required to deal with it.
This is the most common form of a Federal Tax Audit. As the name implies, it is usually carried out through correspondence. The IRS typically sends a simple letter to an individual or an organization. This letter acts as a reminder that they owe some money in taxes to the IRS. Technically, the letter is merely a form of correspondence. Strictly speaking, it is not an Audit. However, ignoring it can easily devolve into a full-fledged audit.
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Upon receiving such a letter, it is imperative that you pay the relevant amount within the given deadline. If you feel there has been a mistake, you can argue your case in front of the IRS. You can hire a professional Federal Tax Audit expert to argue the case on your behalf.
Audit via Letter
The IRS sends a letter asking for certain documents which support your position on taxes. This is the most minor form of a Federal Tax Audit. Sometimes, the IRS just wants to see some receipts for a charitable donation or a credit card receipt. Generally, it takes no more than a simple response letter to resolve the issue. However, it may escalate if you do not have said proof.
You can avail of the excellent Federal Tax Audit Services provided by SG INC CPA to handle any such disputes.
An Office Audit is rarely conducted without good reason. The IRS might want to interview a taxpayer in person for clarification or proof of certain claims. In essence, this is a full-fledged Audit. The taxpayer is asked to visit the regional office of the IRS for an interview. The services of an Audit expert can be taken in such circumstances.
In fact, it is vital that you obtain the services of a competent tax professional. Otherwise, you might inadvertently cause the IRS to increase your scrutiny.
A Field Audit is conducted at your residence or office. IRS sends an agent directly to your place. This is an intrusive kind of Audit. It is conducted in a detailed and invasive manner. Such an Audit is never limited to a specific item or agenda. This is a very rare form of Federal tax Audit. However, it is advisable that you avail of the services of professional Federal Tax Audit Services to represent you. SG INC CPA can provide extremely helpful services in such circumstances.
Line-By-Line or Targeted Audits
Line-by-Line Audits are the most dreaded audits. The target for this audit is generally chosen at random. Every single line on the return is examined. While this is the harshest form of Audit, it is also the rarest. It only occurs at the behest of the National Research Program (NRP). These Audits provide valuable data to the IRS. It gives them directions to conduct future targeted audits.
We can provide excellent Audit Defense and Support Services. We aim to reduce your organization’s liabilities and show it in the best light possible.