Careful, You Might Get Audited
Preparing a tax return can be complicated. Even a simple error can occasionally trigger an audit. Individuals who are inexperienced in tax preparation are at a significantly higher risk of getting audited. However, hiring a licensed tax preparer can significantly reduce the chance of being audited. Audits occur when the IRS identifies mistakes in a filed tax return. Once discovered, they will adjust the return to correct any errors discovered. Taxpayers can either accept the adjusted balance or seek assistance from a licensed Attorney, Enrolled Agent, or CPA to help them pursue an audit defense claim.
Preparing for Audit Defense
Licensed tax practitioners start by investigating a taxpayer's tax situation. Enrolled Agents have direct access to the IRS's electronic database called e-services. This service allows them to access taxpayer's transcripts and tax returns. Information obtained from e-services is examined alongside the audited tax returns to help identify the cause of the audit. E-services are an essential tool used to correct and defend errors and omissions made on filed tax returns.
Audit Defense To The Rescue
Submitting an audit reconsideration to the IRS starts the process of the audit defense claim. The IRS requests additional supporting documentation to process an audit reconsideration. During the claim, they require prompt responses to audit notifications and updated financials upon request. They often need a taxpayer's presence at an audit hearing. It is critical to provide the necessary documentation promptly if you intend to win your audit defense claim. Working with an experienced tax professional can improve your chances of a successful outcome.