No one wants to get audited by the IRS, but those who do are in good company. For example, the government reviewed nearly one million of the returns filed in 2017 alone. However, since navigating the process can be challenging, it’s wise to seek IRS representation. A knowledgeable CPA can handle most of the case on your behalf so you can focus on other matters. In the meantime, here’s what you should know about tax audits.

Why You Might’ve Been Chosen

There are more than a dozen reasons why the IRS might audit a particular return. Two of the most common reasons are making simple math errors and failing to report one or more sources of income. There are also “red flags,” or details the IRS believes warrant a second glance. Examples include claiming a home office, using round numbers, deducting excessive charitable donations, and reporting considerable losses. Those who reportedly earn little to no income are also more likely to get audited, as are those who belong in the highest tax bracket. 

How You Should Proceed 

If you’re being audited, consider seeking professional guidance. Firms that provide IRS representation know exactly what’s at stake for their clients, and they’ll use all the resources at their disposal to resolve the situation as quickly as possible. A seasoned CPA will determine why you’re being audited and then gather the documents needed to satisfy the auditor’s requests. Your tax representative will handle all correspondence with the IRS on your behalf, complete any required forms, and—if necessary—repudiate the proposed amount owed, negotiate for a smaller figure, or arrange a manageable installment agreement. 

If you’re facing a tax audit and need IRS representation, turn to Lee & Smith. Serving individuals and businesses in the Texarkana area, this firm has been in business for nearly three decades. They offer everything from income tax preparation and bookkeeping to payroll support and business structuring. To learn more about their IRS representation services, visit their website. Then call (903) 832-4339 to discuss your needs. 

For full disclosure and information on handling an IRS audit, contact their office.