You have filed your taxes on time and reported your income and expenses accurately. Why does the Internal Revenue Service want to audit your returns? There are lots of reasons it is possible to be selected for an audit.
Your tax return may be chosen for audit through various procedures:
- A computer-created scoring system that is responsible for the majority of audits.
- Fitting Programs – your reported income is matched to the information reported in information returns, i.e. W 2, 1099-R, etc.
- IRS specific projects targeting vocations or particular professions.
- Informant reports of potential tax fraud (can result in a compensation to the informant).
- Information received from sources concerning unlawful action, and newspaper reports.
- Arbitrary choice (no specific advice noted).
- Past IRS audits.
Yes, your finances can be hurt. Should you fail to delay their collection tactics or to satisfy the IRS, your bank accounts can be suspended as well as your assets seized for nonpayment. Even your business might be driven into bankruptcy.
Before an audit begins, you may receive notice from the Internal Revenue Service. Working with a qualified tax professional will ensure your reassurance. You can be protected by your tax specialist from IRS intimidation and guide you in the ideal processes. It’s not possible to prevent the audit, but you can be ready to face the IRS.
Getting Help
If you are facing an audit, and are worried about your finances, please contact us right away, and we can show you how to avoid such issues with you are facing an audit. Our team can help you get back on your feet!