Calculating Your Federal Income Taxes

Posted on: 24 March 2023

Are you worried about being audited by the IRS? It's a common fear, but don't let it consume you. Instead, focus on finding a local IRS auditing assistance service to help you navigate the process. Here are some helpful tips to get you started.

What an IRS Audit Entails

You may have heard the term "audit" thrown around, but what does it mean? An IRS audit is an examination of your tax return by a revenue agent or auditor. The purpose of an audit is to ensure that you have reported all of your income and paid the correct amount of taxes.

Audit letters are sent out by mail to taxpayers who have been selected for review based on specific criteria such as high income, high deductions or credits claimed on their return, or having received prior correspondence from the IRS regarding their tax returns. If you receive one of these letters, don't panic! This doesn't necessarily mean that there's anything wrong with your return--it just means they want to take another look at it before sending it back to you again (and possibly charging penalties).

Act Quickly

Once you receive an audit notice, it's important to act quickly. You typically have somewhere around 30 days to respond, so take your time. Contact an experienced tax professional who can guide you through the process and help you prepare for the audit.

Get Help

When selecting an IRS auditing assistance provider, look for someone with experience with your tax situation. For example, if you're a small business owner, you'll want to work with someone with experience with small business audits. Similarly, if you're being audited for your personal taxes, look for someone specializing in individual tax returns.

Once you've found a local IRS auditing assistance provider, it's time to start preparing for the audit itself. Your tax professional will work with you to gather all the necessary documentation and information the IRS will need to review. This may include tax returns, receipts, bank statements, and other financial documents.

Be Calm and Professional 

During the audit, it's important to remain calm and professional. Answer the auditor's questions truthfully and to the best of your ability. If you don't know the answer to a question, it's okay to say so. Don't try to hide anything or provide false information, as this will only worsen the situation.

If the auditor finds errors or discrepancies in your tax return, don't panic. Your tax professional can work with you to develop a plan to address the issues and minimize any penalties or fines you may incur. In some cases, it may be possible to negotiate a settlement with the IRS.

In conclusion, being audited by the IRS can be a stressful and overwhelming experience. However, with the right IRS auditing assistance, you can confidently navigate the process and minimize any negative consequences. Remember to act quickly, choose a reputable provider, and prepare thoroughly for the audit itself. With these tips in mind, you'll be well on your way to a successful audit outcome.