Undergoing an audit is a daunting prospect for most. To ensure the process goes smoothly and accurately, it’s wise to hire a skilled certified public accountant. A professional will ensure you receive a fair shake at the hands of the IRS; though, it’s still important you understand what to expect as well as the steps you must take right away.

What You Must Do When Faced With an Audit

Inquire About Why You’re Being Audited

Current tax laws stipulate that the IRS must tell you why you’re being audited, and if a representative fails to do so, it’s wise to ask. Common reasons include associations with another party that is under investigation, discrepancies within your tax return, and so-called “red-flags,” which are identified by computer algorithms. There are even random audits.

Identify the Type of Audit

You should also find out which type of audit they’re using in your case. In some instances, the IRS will simply ask for more information, and in others, they’ll dispatch an agent to your home or office to review the tax documentation. You may also undergo a Taxpayer Compliance Measurement Program Audit, which entails backing up every portion of your return with the appropriate paperwork.

Bring Together Important Documentation

Lastly, for the audit to take place, you’ll need to provide the requested documentation. This can be an exhaustive process and illustrates the importance of keeping tax records and related paperwork for a few years after a return has been filed. A seasoned certified public accountant can identify which documents you’ll need to provide.

If you need a certified public accountant in Staunton, VA, Roy E. Carter, CPA, PC, has the tools and ability to represent a wide variety of clients, which is why so many rely on his firm when faced with complex accounting matters. Call (540) 886-6251 to schedule an appointment today. For more information about the certified public accountant, visit the website.