Different Types of IRS Tax Audits One Should Know

Believe it or not, dealing with the IRS is very confusing and complicated. Tax issues and consequences can also have punitive and long-lasting impacts on the individual or business’s economic well-being. While some notices or letters are not causing much concern, every audit should be taken seriously.

Most of the IRS tax audits do not have similar implications, and some are more intimidating than others. Continue reading the post to know the types of IRS tax audits one must undergo. There are professional experts (whom include an attorney for IRS problems) to deal with the problems, and you can seek help from them.

· Office Audits

An office audit is in-person, and the local IRS office conducts the whole process. These audits are more in-depth and include questioning by the audit officer about the information on the return you have filed.

You might have to bring certain information during the office audit, like books and records of the business, personal bank statements and even receipts. You have a right to seek help from an accountant or a team of professional tax experts (including a tax assessment attorney) to represent you in the meetings.

· Mail Audits

Irrespective of the type of IRS audit, you will get a notification via mail. Mail audits are the common IRS audits, and it does not need you to encounter an assessor in person.

Usually, IRS requests further certification to validate different items you report on the tax return. For instance, if you claim $10,000 in a benevolent act, the IRS might ask you to send a letter asking for proof of donations. Usually, providing adequate proof will accomplish the audit in your errand if the IRS is gratified.

· Field Audits

Field audits are broadcast examinations that IRS conducts. In these audits, the IRS agent conducts the audit at your home or place of business. Usually, field audits are mainly conducted when the IRS is inquisitive about more than just a deduction or two. A field audit is usually very exhaustive and includes different points, if not all.

Irrespective of the IRS tax audit you encounter, staying calm and organised is crucial. Having consultation from the experts get even more effective in such circumstances.

Significance of Seeking Legal Advice

It is too dangerous to pay heed to inexperienced individuals who share IRS insights. Doing this will eventually harm the overall conditions. Experts advise bringing in a tax attorney to support in resolving an audit.

Seeking consultation from a team of professional experts (including an IRS tax attorney in San Jose or other places) will help you to get the best information in an organized manner. The professionals can also limit the scope of the audit, lessen the burden, and negotiate with the IRS on your behalf.