Collaborate with a Tax Professional When the IRS Contacts You.

Handling a tax audit or replying to an IRS notice on your own is vastly different from repairing a leaky faucet or performing an oil change. Here are several reasons to team up with a tax specialist as soon as you get a notice from the IRS:

• IRS auditors are professionals – you are not. Experienced IRS agents encounter situations like yours frequently and are well-versed in the regulations. Unfortunately, they are not required to explain these rules to you. Just as a defendant needs legal representation in court, you need someone who understands your rights and the relevant tax codes when communicating with the IRS.
• Lack of records can be costly. When chosen for an audit, the IRS typically requests specific documents in writing. This might include receipts, invoices, legal papers, loan agreements, and other records. Missing any of these can cause complications. While some records can be reconstructed, you may need a credible explanation to avoid additional taxes and a potential 20% negligence penalty.

• Excess information can increase audit risk. Most audits are limited in scope, but IRS agents have the authority to expand their investigation based on initial findings. If they find a document or hear something that raises suspicion, they can broaden the audit to other areas. Being well-prepared with appropriate documentation and concise responses is crucial to minimizing further audit risks.
• Missing an audit deadline can cause issues. The initial audit request will specify a response deadline, usually 30 days. Missing this deadline means the IRS will adjust your tax return based on their findings, not yours. This often results in additional taxes, interest, and penalties. To ensure your perspective is considered, get assistance immediately to prepare a strategy and adhere to IRS deadlines.

• Relying on a specialist provides peace of mind. Tax audits are never enjoyable, but they don’t have to be extremely stressful. A tax specialist can develop a strategy and guide you through each step to achieve the best possible outcome. You’ll feel more at ease knowing your audit is managed by someone with the right expertise who also prioritizes your best interests.

Get ahead with expert tax guidance! Call 832-303-3995 or book your appointment today.