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Understanding How the IRS Conducts Tax Audits?

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The Internal Revenue Service (IRS) is the federal agency in charge of collecting taxes from individuals, businesses, trusts, and other organizations in the United States. The IRS is an incredibly important organization that plays a vital role in the financial stability of the United States. However, because they play such a large role in everyone’s financial lives, their responsibility can be a bit difficult to understand. 

This article will help you understand the role the IRS plays, namely, its role in conducting tax audits. If you are being audited, it’s because the IRS believes there are inconsistencies in your tax reporting. This can have serious consequences, especially if you did so intentionally in an effort to get back more money or to not pay the taxes you owe.

If you are faced with an audit by the IRS, you should contact an experienced IRS audit attorney in Sarasota, Florida right away. Call the Law Offices of Mary King to secure the legal counsel you need during this intimidating time. Mary has over 30 years of experience dealing with the IRS and all tax-related matters. As such, you can trust that you will receive expert legal guidance.

What Is an Audit?

The IRS audits people and businesses that have income and/or assets. The IRS audits people to see if they (or their spouses or dependents) have claimed certain tax benefits correctly and audits businesses to make sure that they are reporting their income correctly and paying the correct amount of taxes.

Depending on the reason for the audit, the IRS may send one or more employees to audit you. The audit staff is usually made up of auditors and senior managers. The majority of audits will begin with an audit plan review. During an audit, the IRS will look at your business’s books, records, and financial data. This includes the data related to the items they are checking to ensure that you have paid your taxes correctly.

How Does the IRS Conduct an Audit?

The IRS audits people and businesses anytime the IRS believes they have not reported all of their income correctly. They start by looking at your return to see if you reported all of your income and/or if you claimed any tax benefits on your return. 

The IRS will then go through your books and records to see if they match up with your tax return correctly. Then, the IRS will audit your books and records to make sure that they are correct. Finally, the IRS will audit your books and records to make sure that you have paid any taxes that you owe.

If the IRS audited you, but you think that the IRS made mistakes, you should hire an IRS audit attorney to represent you in the audit. They can help you figure out if you owe more taxes and help you figure out how to pay them.

How Do You Respond to an Audit?

If the IRS audits your tax return and you think that the IRS made mistakes, the first thing you should do is hire a tax professional to represent you in the audit. A tax professional can help you figure out if you owe more taxes and help you figure out how to pay them.

If you receive a notice from the IRS auditing your business, you should respond to the audit notice right away. Depending on the reason for the audit, you may want to hire an IRS audit attorney to oversee the situation and give you guidance as to what to do. Moreover, you should read the audit notice carefully to make sure that you understand what the IRS is auditing and what they want from you. When you respond, be respectful and professional.

In Closing

If you own a small business, you may be familiar with the audit process. However, you may not know exactly how the IRS conducts audits or how you should respond. The information in this article will help you understand how the IRS conducts audits and what you can do if you receive a notice from the IRS.

Tax audits are a fact of life for businesses. The key is to make sure that your business is in good financial standing. Keep your business’s books and records up-to-date, file accurate tax returns, and make sure that you have reported all of your income correctly.

Get Experienced Legal Counsel for All of Your Tax Matters IRS audits can be a scary experience. That’s why you need a knowledgeable lawyer who understands tax law. At the Law Offices of Mary E. King, we’re committed to assisting our clients in all tax-related matters. If the IRS is auditing you, give us a call to make sure you have the legal counsel you deserve. Call 941-906-7585 or submit our contact form to get started.

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