Every taxpayer is subject to an IRS audit, even if your tax returns were prepared by an experienced professional. As intimidating as the audit process can sometimes be, knowing what to expect can significantly decrease the stress and help you achieve a faster resolution to your tax issues. In fact, many people are surprised to find that an IRS audit doesn’t have to be frightening or difficult.

Tax Audits by Mail

Only very few taxpayers will actually find themselves having in-person interviews with an IRS auditor. In fact, most are conducted through mail, so you’ll most likely receive a letter from the IRS requesting additional information about your tax returns. In many cases, simply submitting the requested documentation will clear up the issue, sometimes without paying additional taxes or penalties.

In-Person Tax Audits

If the IRS has more questions about your tax return or wants to perform a more detailed examination of your finances, you may have to appear at a local office for review. Before your audit, the IRS will notify you of the issues they want to clear up and what documentation you will need to bring. Taxpayers called in for an in-person interview have the right to bring an accountant or tax attorney to represent their interests and answer questions as they arise.

Possible Outcomes of an Audit

It’s common for taxpayers to assume that audits will inevitably result in penalties or other negative outcomes, but this isn’t always the case. In fact, the IRS may be satisfied with your answers or may suggest an amendment to your tax return which could actually result in a refund. If they do determine that they underpaid your taxes, the agent will suggest changes to your return and thoroughly explain the consequences.

For more than 30 years, small businesses and individuals throughout Sparta, WI, have relied on Simplified Tax for everything from IRS audit representation to tax return preparation and planning advice. If you’ve received an audit notice, visit their website or call 608) 269-2633 to make an appointment with an experienced tax professional.