Audit—for some, the word is enough to inspire an icy chill down the spine. But audits don’t have to be scary. If the IRS has sent you a notification of audit or audit adjustment, it’s important to act fast. It’s time to gather the receipts, tax documents, loan records, medical records and more. You may find yourself scrambling to find all the documents you need just hoping they’re in a secure place. Leave the harried frustration behind—the right tax resolution services can make your auditing worries a thing of the past. Our tax experts at Community Tax are ready to help you prepare for your audit. Contact us today to find the preparation service for you.
Many taxpayers choose to go it alone when an audit letter comes in the mail. This can be a costly mistake. During an audit, it’s in the taxpayer’s best interest to provide a pristine file of all required documents. There’s plenty of complexity to deal with during an audit, and having a professional on your side to help you navigate the process can save you money and heartache. Our tax professionals will communicate with the auditor to make sure no problem is overlooked, and help you position yourself for success. Should the audit not go in your favor, we will prepare a plan to best resolve your tax issue.
At Community Tax, our Certified Public Accountants, practitioners, and enrolled agents have experience performing accurate analyses of financial information to prepare you for an audit. They have the ability and experience to communicate with IRS agents to take you smoothly through your audit and address any causes for concern. We’re dedicated to resolving auditing issues quickly and efficiently, helping you, your business, or organization get back on the road to financial success.
We are committed to providing our services to those in need. Our professionals work with clients to overcome financial hardship whether it’s an audit, tax debt, a levy or a plan for a better financial future. At Community Tax, we tailor our services to fit your budget so that you can get out of your audit and tax issues without the burden of more debt. Let our tax experts sit down with you to answer any of your questions and formulate a plan that will help you get out and stay out of debt. Half the battle is organization, and our team of tax professionals are well-versed in the ins and outs of the government auditing process. Let us organize your tax documentation so you can face an audit with confidence.
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What is a Tax Audit?
A tax audit is a financial examination of an organization through annual reports. The audits are always performed by someone who is independent from the organization to insure objectivity and accuracy. The purpose of an audit is to analyze whether the provided financial information reflects the financial position of the organization or individual date. Misinformation may be a result of poor tax preparation, and in some cases, fraud.
Auditors always follow standard procedures that are determined by the government. At the end of an audit, the auditor writes a report explaining what they have completed and provides an educated conclusion. All listed companies and limited liability companies are subject to an audit every year. Some organizations request audits to gain a comprehensive view of their business transactions, taxes, and financial health.
In order to understand what an auditor does, it helps to first understand what it is they don’t do. Generally, auditors don’t evaluate every transaction produced by the organization nor every minute detail of the financial report. Auditors will never reveal details to shareholders of the organizations current state or risk management. The audit doesn’t predict financial trends of the future, so it’s no indicator of the success or failure of an organization. Auditors never show up unannounced—you’re informed of the timeline ahead of time.
Why Did I Get Audited?
If you receive a notice for an audit, it doesn’t necessarily mean you did something wrong. The IRS chooses individuals based on random selection, computer screening or related examinations. You may be picked based on a formula or if your tax return is slightly not normal compared to most returns. Audits are also selected based on issues involving other taxpayers close to you whose returns were selected for an audit, like business partners.
Audits aren’t all that common, despite what you may have heard. In general, the percentage or returns audited correlates to gross income. Those who make upwards of $1,000,000 are much more likely to be audited than an individual who makes less than $75,000, as the rates of IRS audits in 2014 shows.
While audits are generally rare, barring exceptional cases, if you’ve been chosen for an audit, there’s no reason to panic. Coming up with a plan of action and organizing the important documents will help you come through your audit unscathed.
How Does the IRS Do an Audit?
Audits are completed either by mail or through an in-person interview. An interview is conducted either in an audit office, the taxpayer’s home, place of business or an accountant’s office. The IRS always sends a letter ahead of time to notify you when the auditor will see you. The letter contains all of the instructions and contact information you need to follow up. If you have questions the IRS can answer them to help you move forward. Be sure to contact the listed numbers as soon as possible with any questions you may have.
You or the organization will prepare the documents and files for the report. The auditors then read the report to determine the cause and effect of any financial inconsistencies related to the business. They’ll identify any risks or controls to understand the accuracy and evidence in the report. The auditor will then create a written report that states their opinion for their members or shareholders.
How to Prepare for a Tax Audit
The IRS letter will tell you what documents they need to continue with the audit. They may require receipts with certain dates, bills with your name or organization, canceled checks, legal papers like divorce settlements, loan agreements, tickets, logs, medical and dental records, theft or loss documents, employment documents and Schedule K-1. If you’ve never been through an audit before, keep these documents in a safe place in case you are audited. The 10 minutes spent on organization can transform your financial health in the long run, and keep you protected should an audit be requested.
When to Hire a Professional for Tax Audit Help
Tax audits can be nerve-wracking for individuals and organizations alike. The first step is to remain calm. As stated before, an audit doesn’t necessarily indicate that that you did something wrong or that the IRS is trying to find evidence to persecute you. The IRS performs audits routinely to make sure their tax information matches those you present.
An audit representative from Community Tax is experienced in communicating with the IRS. Our experts understand that your time and money is valuable, so we work hard to protect your finances. There’s no need to scramble to get your documents together with our help. Our tax professionals will sit down with you to organize all you need to present for an audit. We will sort through the paperwork and speak with you to gain an understanding of your tax information or the tax information of your organization. When you receive a notice of an impending audit, act immediately. Whether you have all of your documents in order or you need to find all of your information, Community Tax will prepare you when the auditor visits. We will apply our knowledge to help you understand your circumstances and your options.
Not worried about an audit? We can use our expertise to help you in other areas. Prevent future mistakes and plan your financial future by using our help. Our professionals will organize your finances to maximize returns and minimize the chance of tax penalties imposed by the IRS. We can help you plan and keep ahead of your taxes for a positive financial future.
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Our Tax Professionals
There is no one-size-fits-all tax professional. At Community Tax, we have a team of tax experts from a variety of backgrounds to help you with your specific needs. Thousands of taxpayers are audited every year and we are prepared to help you in any tax situation. Whether you are getting audited, you’ve received a Notice of Intent to Levy, or just need help planning your financial future our specialists at Community Tax will take you where you need to go.
Enrolled agents are the quintessential tax experts when it comes to understanding the IRS. Enrolled agents are federally licensed tax practitioners who specialize in taxation and tax law. Other professionals like accountants deal with a broader knowledge of finances, but enrolled agents have expertise exclusively in the dealings of the IRS. A licensed enrolled agent knows the ins and outs of the IRS because many of them have experience working in the IRS before. To become an enrolled agent, agents are required to spend at least two years working for the IRS or take an extensive exam focused on tax law. The IRS grants enrolled agents the unlimited right to represent taxpayers on their behalf before them. They have the highest prestige under the IRS as tax experts and have the expertise to help taxpayers through their tax issues. Our team of enrolled agents have years of experience helping our clients with the IRS. Let one of our enrolled agents help you organize your audit information and present the best case before the IRS.
Certified Public Accountants
Certified Public Accountants, or CPAs, are top-notch accounting experts. Certified Public Accountants spend years of dedication toward the study of finance, accounting and tax law. CPAs often earn a master’s degree and spend months or years studying for the infamous CPA exam. Prospective candidates have a timeframe of about one year to complete all three parts of the exam and pass. It’s not uncommon for people to fail on their first try and others take several years to pass. A CPA is an expert in a breadth of knowledge regarding tax law, practice and ethics that can help you and your business thrive. They will stand in your place before the IRS to negotiate the best solution and resolve your case. When you hire one of our CPAs, you know you’re getting the best in the industry for filing back taxes, analyzing accounts and assets, and planning a solution for you.
Lawyers have a breadth of knowledge in many areas of law and may or may not be experts in tax law. Lawyers endure years of schooling and must pass the rigorous BAR exam to earn their Juris Doctor. Our professional lawyers focus on tax law in order to help individuals, businesses and organizations at all levels of government, including federal, state, local and international tax issues. Tax lawyers have unlimited authority under the IRS to represent on your behalf.
At Community Tax, we’re passionate about helping taxpayers in times of need. If you need help planning for an audit, getting out of tax debt or preparing your taxes for the future, our experts are ready to talk to you about the next step you can take.
Our team of tax professionals come from a variety of backgrounds to help every individual client in need. From Puerto Rico to New York, Chicago to Pittsburgh, and everywhere in between, Community Tax professionals understand how to prepare our clients for audits and represent them with even the most dire tax issues. Community Tax has helped save millions of taxpayer dollars and given our clients the plan they need to forge their financial future. Our tax advocates desire to help both businesses and individuals prepare and oversee their taxes every year. Get more information by calling today for a free consultation at 1-888-676-4319.