Every year, roughly 1% of American taxpayers will be faced with an audit on their personal tax returns. The odds are low that you will be selected for an audit, but it still can happen. That’s why it’s important to know what to do in case you get audited by the IRS.
The purpose of an audit is to carefully review the details of your tax return to make sure everything is accurate and that all deductions are proper. Some people are chosen because they are in a high-income bracket or their W-2/1099 amounts don’t match up with what your employers report. Others get selected because of deductions that draw extra attention, such as home office expenses, rental losses, vehicle usage for business or hobby-related deductions.
The IRS will contact you via mail if you are chosen for an audit. The notice will include what information needs to be examined and the specific instructions you need to follow for compliance. You will have 30 days to respond, so do not procrastinate!
Get all the necessary paperwork in order and contact a tax professional like Ferguson, Timar & Company. Even if you did not use a professional tax preparer to submit your return, having someone with experience and knowledge on your side will make the process go as smoothly as possible. The tax experts at Ferguson, Timar & Company will walk you through each step while protecting your best interests.
Ferguson, Timar & Company handles all types of personal and business tax return audits, including the IRS, the California Franchise Tax Board, the California Employment Development Department (EDD) and the California State Board of Equalization (sales tax audits). We’re here to help you through the intimidating audit process, whether it’s a fairly routine audit or a situation where special terms need to be negotiated, such as:
- Installment Agreements or Back Taxes Owed
- Payroll Liabilities
- Offers in Compromise
- Filing of Back/Delinquent Tax Returns
- Penalty Abatements
- Currently Not Collectible Status
When you are facing a tax audit, turn to the team at Ferguson, Timar & Company to provide assurance, protection and support throughout the auditing process. Let our tax professionals help you make the right decisions and achieve a better audit outcome. Contact us today for more information about tax audit representation.