Overall, the chances of being in an audit are low – about 1 in 100. But if you happen to find yourself one of the few selected, Patty’s Income Tax can help you get your business out of Audit.
Business Audits – What to expect
Know the facts before you get overwhelmed. Taking your time to understand everything you can will be important in the long-term goal of getting you out of Audit and back on track with your business or personal finances.
- Over 75% of Audits are Correspondence Audits – meaning the IRS requests information by mail instead of questioning the taxpayer in person.
- Most audits focus on itemized deductions These can be quick fixes if found soon and fully corrected.
- In person field audits normally require verification of income. Being prepared at the correct time can save you a lot of time and problems.
Did you get a letter? Don’t Ignore it!
Out of sight is not always out of mind. Shoving a letter or pretending its not there won’t make it go away. The normal window for response is normally 30 days – so it is crucial you respond to each IRS letter received to your business address.
Get Your Business Documentation Together
It is a general rule of thumb that you should keep tax-related documents for the last three years. If you can’t find the documentation you need in your files, you can usually get another copy elsewhere. For example: If you are missing the bill you paid for you medical expense, most times you can contact your doctor’s office in order to receive another copy.
If you are unable to get the proof the IRS is asking for, any unsubstantiated claim or deduction on your return will be disallowed. It is important to have records for everything you are itemizing and claiming.
Stay Calm, We Can Help – We’re good at it!
Spending time with the IRS may not be your idea of a fun time, but being rude or difficult won’t help get the problem solved quicker. We know financial issues can be very stressful and whatever your IRS problems are Patty’s Income Tax will provide an honest evaluation and represent your tax problem aggressively with the IRS.
Asking for help is not admitting defeat. We like to help those that help themselves and we know taxes and dealing with the IRS can be very time consuming, and frustrating. That is why we are here to help.
If you are facing an audit of your tax filing, I will fight to reduce or eliminate financial penalties. If you have been audited and are unhappy with the results, we can help you file and appeal or reconsider your case.
As an Enrolled Tax Agent,Patty Murphy, can help to get your case solved – and get you out of audit from the IRS.
If you end up owing extra money, you’ll get a bill that is typically due within 30 days the mail, unless you ask for a payment plan. If your federal return ends up being changed, you’ll typically have 90 days to amend your state return as well.
Disagree with the outcome? We’ll work to conduct an internal review. If that doesn’t help we can refer you to CPA’s or another service to assist you. As a last resort, you can appeal the audit in U.S. Tax Court, a federal court specializing in tax cases.