In recent years, the focus of the exam division of the IRS has changed. The service used to examine claims to see if they were true or false. For example, if you claimed a charitable contribution, they’d want to see a receipt. Then the IRS realized that cheating was not going on through false, unsupported claims. Taxpayers cheated by not reporting income. As a result, the scope of the exam is much larger than it used to be.
The IRS also cost-justifies every exam. Since there is unpaid tax on every return, the IRS will stick with you until they find it! If you receive a note to examine, you can expect to owe some money, and you can expect high professional fees.
Still, it will behoove you to pay these professional fees so you can move through the audit as quickly and painlessly as possible. Going on your own through an audit can be expensive in terms of money, time and peace of mind, especially since most people don’t know their rights. For example, the IRS may say to you, “We’re coming over.” But, if you conduct business from your home, you could say, “No, it’s my home.” In order to protect your rights, you must first know what they are and assert them.
What Can I Do to Minimize My Risk of an Audit?
No tax return is perfect. No person accounts for every penny of expenditures or every dollar they receive. The IRS scores every return on how they think it differs from the facts. They look for clues of hidden income. The IRS specializes in taxes; they know the signs of fraud.
You can minimize your risk of an audit by hiring a professional that files tax returns for a living. Tax professionals know how to work with their clients to file a complete and straight-forward return that doesn’t omit income or hide facts.
You can also narrow your chances of an audit by choosing a tax professional with ethical and moral backbone. An accountant can save time and trouble by cutting corners. However, taking shortcuts will make your return less credible. If your tax professional is willing to hide facts from the IRS, or doesn’t dig for information, find a more scrupulous one!
How Can Tax Matters Solutions Help
The CPA’s of Tax Matters Solutions file tax returns accurately. They take pains to cover all aspects of your return and report all the relevant information so your return is clean, clear and complete, giving you peace of mind as well as all applicable deductions.