An audit is when the IRS requests that you provide proof of deductions, income or to verify any other item included in your tax return. Why does everybody hates audits? Simple, while the official purpose of an audit is to ensure compliance with federal tax law, the real reason is to generate money for the federal government, especially in today’s economy.
There are two basic types of audits. A field audit and a computer generated audit.
A field audit is an examination conducted by the IRS into a taxpayer’s financial records and tax return. These audits are either carried out at the taxpayer’s place of business or the local IRS office.
A computer generated audit is exactly what it sounds like. Taxpayers receive letters in the mail either questioning an issue or issues. The computer generated letter generally asks for documentation. If the taxpayer fails to respond to the letter by the date indicated, the item in question will be disallowed and tax, interest and penalty will be calculated.
Even though I am located in the Dallas, Texas area, I can represent taxpayers in any part of the country in both of these types of audits either through mail or telephone conference.
Don’t go into an audit unprepared or without representation. Remember, the IRS agents have more experience in these matters than you do.
Call me at 972-800-1099 or email email@example.com