It is sort of discouraging to find that all those taxes that you filed will not be a good reason for the IRS to leave you be. That being said, an audit does not always lead to you owing the IRS money.
Basically an income tax audit is an examination the tax returns that you file every spring. During the audit an IRS auditor makes a strict assessment of your tax return. If something does not add up right or the return has something peculiar then the auditor will pinpoint the error for you. Either that or he or she will demand a justification.
The Income tax audit can be prepared in different ways for three different types, Office, field and correspondence.
The field audit is probably the most nerve wrecking type. Here the auditor visits your home or the business venue to check the information that you have put down on your tax return.
The office audit requires that you go up to the auditor’s office. If you hired a tax preparer then the auditor will request the preparer and you to bring all tax related information with them.
This audit system uses mail to deal with tax return issues. They may use correspondence to let you know about illegible entries and miscalculations.
The first step to it all is to return the audit notice, accompanied by all the documents that the IRS has asked for. They may request you to provide them with: tax returns, receipts, brokerage statements, home mortgage, retirement plans’ records, and pay stub.
Hey need these so that they do not end up questioning whether anything that you have claimed for is deductable or not.
At the end of it the auditor will give you a document; referred as the 30 day letter. This letter has a copy of the assessment report and an explanation of your right to appeal.
You have 30 days to do what you need to resolve the matter. If you still do not understand the IRS conclusions then you can reach out to a good tax service in St. Cloud, FL by this time and if you discover that the IRS has been right all along then you can sign the examination report, after you respond to the 30 day letter that you agree.
Now if it happens that you do not agree then you are allowed to appeal what the auditor’s findings. Make sure that you do this in 30 day’s time.
If you need more information about our St. Cloud, FL accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.