IRS Audits
What is an IRS Audit?
An IRS audit is an official examination of an individual’s or business’s financial information and accounts to ensure accurate reporting and compliance with tax laws. The IRS reviews the taxpayer’s records and financial documents during an audit to verify the reported income, deductions, and credits.
Who Does the Audit?
IRS auditors, trained professionals employed by the Internal Revenue Service, conduct audits. They are knowledgeable in tax laws and regulations and are responsible for reviewing taxpayer information and determining if any discrepancies exist in the tax filings.
What is Involved in an IRS Audit?
During an IRS audit, the taxpayer is required to provide documentation supporting the items reported on their tax return. This may include receipts, invoices, financial statements, and other relevant records. The IRS auditor reviews these documents, asks questions to clarify information, and assesses the accuracy of the tax return.
Why May I Be Involved in an IRS Audit?
Taxpayers can be selected for an IRS audit for various reasons, including random selection, discrepancies in reported income, large or unusual deductions, or connections with others being audited. Being audited does not necessarily imply wrongdoing; it’s a standard procedure to ensure tax compliance.
Who Should I Contact for Help if I Get Notified I’m Involved in an IRS Audit?
If you’re notified of an IRS audit, it’s advisable to contact a tax professional, such as a Certified Public Accountant (CPA), Enrolled Agent (EA), or a tax attorney experienced in IRS audits. They can guide you through the process, help gather necessary documents, represent you in communications with the IRS, and ensure your rights are protected during the audit.