Tax is a regular activity for most citizens earning their living in the US, and paying taxes and filing tax returns is done regularly every year by millions of Americans. Most taxpayers, earning their income from a single salary or offering their services, don’t need any professional help to calculate and file tax returns. The IRS itself offers online tax software to help individual taxpayers filing their returns. However, there are also many third-party tax software available for this purpose.
Although filing tax returns is not much of a difficult task, taxpayers, intentionally or unintentionally, can make mistakes in their tax returns. IRS officials scrutinizing your tax return will see any such mistake as an attempt to misguide the IRS by you. However, they first send a simple letter with a simple query seeking answers from you. The majority of the cases are resolved by just providing the data they seek in order to assess your taxes. But if the IRS representative or examiner doesn’t feel satisfied with your answer, you may face an IRS tax audit.
If the taxpayer has a good experience of filing tax returns and communicating with tax officials, they should only handle the tax audit themselves. Otherwise, professional help in the form of a tax consultant or tax attorney should be hired for tax audit representation.
Things To Know Regarding Tax Audit Representation in Dover, DE
Before deciding what to do if you have to face a tax audit, here are the things you need to know regarding tax audit representation;
Analyze the IRS letter: In most cases, the first letter you receive from the IRS can tell you where your case is heading. If the IRS is asking you to send the document(s) relating to an income or expense that is playing an important role in tax calculations, then chances are IRS just needs to be sure about your taxes or want you to provide complete documents, which you should’ve provided in the first place. Just send the specific documentary proof or answer the IRS has asked.
Control the Correspondence: Although it is important that you provide all the relevant information to the IRS, the more important is to know what not to share with them. You probably think that it is good to cooperate with the IRS in every way possible, just like you do with the police, but that is not the right approach in the case of tax. The more data you provide to the IRS, the more they have to scrutinize your finances. So be careful while sending IRS any documents.
Hire the Help when things are under your Control: Once you are selected for a tax audit, don’t wait for the tax date to arrive and hire the help as soon as you can. A professional tax consultant may get you an extension on the audit date so that you can arrange or produce any important document or piece of information you need to present before the auditor. Some taxpayers think that they can try themselves before hiring professionals, but that can cost you heavily because an audit is not about explaining things; it is about getting ready beforehand to avoid explanations.
The options you have!: In case the auditor isn’t satisfied with your answer, and you think that you haven’t done anything unlawful, you still have many options like appeal to auditor’s supervisor, appeal to tax court, or appeal in US District or US claims court.
Contact USA Tax Settlement if you are in need of a tax audit representative near you.
Zee Maq is a content writer who specializes in writing business and finance content. She has nine years of experience and loves to provide problem-solving content to help people tackle challenges in their everyday lives.