What Is Tax Audit and How to Survive

What is a tax audit?

 An IRS conducts tax review with the aim to check entity and singular taxpayer’s data of finance for confirming of figures which take into account are accurate, according to relevant duty laws or representing the correct value of levy due. Auditors do process of auditing in workplace or accountant’s workplace or location of the taxpayer.

Once an audit takes place you have to go through various things and these are you owe the government money, and vice versa or your levy return approves by the auditor in real. No one goes to jail if they do all things in a legal way during the process.

Are tax audits common?

Auditing of tax is not common and a person gets notice of auditing of tax is very less. Only 0.6% of all single financiers of taxes were reviewed as reported IRS if discrepancies arise and highlighted by IRS between you and paperwork accepted by employer brokerage firms or other sources.

Will I be intimated about the audit?

Entities that are being audited get an mail from The IRS instead of a call. Each thing that is important in the process writes in an official way. So, if this situation occurs that someone calls you for payment of tax then you should not believe them. That person has to be arrested and you must confirm that this person is a scammer. Once you get some notice don’t ignore it because if you delay payment you have to pay some extra charges in the form of penalty. This time is the best one for arranging and fixing important things. For this purpose, you have to recruit some experts that do this task in an effective way.

What are the types of Audit?

  • Three types of audit which can be initiated by IRS
  • Correspondence Audit: Audit directed via writing only, and no face to face interaction occurs.
  • Workplace audit: Auditor will arrange a meeting with you in the IRS office for two to four hours.
  • Field audit: Examiner will visit the place of work where you are working or corporate to check records. This may take a whole day or maybe more.
  • Experts only have to answer those question that asks by examiner so in this way, he would not leak any other information for example if the examiner tells you to give the answer is yes-or-no then you must make sure you will give an answer is yes or no only.

Do I need an expert?

It is up to you; you can hire a professional to represent you. But rather than getting into a situation where you don’t know anything and may cost you heavy penalty it's better to seek help from the experts, and it worth the cost. Make sure you hire a professional tax expert who has experience in handling tax audits. Even the tax auditor prefers to work with the professional because they speak the same language and can handle situations better. The experts at express tax know well how to deal with such issues and defend the client during a tax audit.