03 Jan What to Do When You Get Audited
If you’re reading this, it’s probably because you got that letter from the IRS that everyone fears. You’ve never known what to do when you get audited.
Luckily, it’s not the end of the world.
We deal with hundreds of clients who have been in your shoes. After settling their tax problems, we know that our methods can help you too.
Why Did You Get Audited?
Before we tackle the audit itself, it’s important to understand why you got it in the first place. If you’re not aware, an audit is when the IRS sees your tax records (or lack thereof) and believes that something isn’t correct. Then, they audit you to examine your records and finances to determine whether you reported your income honestly or not.
Most people who get audited are business owners who must report their own income as opposed to employees who simply file a W-2. It’s calculating deductions and reporting proper income where many people mess up, and the IRS catches on quickly. Click here to see some of the most common IRS audit triggers.
It’s worth noting that the IRS will inform you of an audit through the mail. If you get a notification any other way, it’s definitely a scam.
What Happens Next?
After notifying you of the audit, the IRS will then conduct their investigation. They will either go through your records or interview you in person. Details are typically provided on the audit notice, so proceedings can look different for everyone.
It’s crucial to remember that, when talking to an IRS agent, the best strategy is to have a professional like a CPA or tax specialist talk to them for you. IRS agents are trained to get the information they need from you, and they have all kinds of sneaky tactics to get what they want. Hiring a professional gives you the best odds for success. Many of our own clients have lost hundreds of thousands of dollars because they spoke to the IRS agent without consulting a professional prior.
How Do You Fix It?
This is the million-dollar question. Fixing an audit depends on the solution that is reached. While the IRS can often wave a big number in front of you, asking you to pay it in full, that’s seldom what you actually owe.
If you’re dealing with an audit, don’t try to handle it yourself.
With all the complicated rules and your money and property on the line, you’ll want to hire a professional to handle this work for you.
What will happen is the professional will engage with the IRS and try to negotiate a smaller offer. The IRS will often adjust the number for low-income individuals or knock down a bill as they receive more concrete information regarding the taxpayer.
We Can Help
At Tax Defense Ohio, we understand that every situation is different, so we work hard to hand-pick a solution that fits your needs. We talk to IRS agents and handle all that complex tax stuff so you don’t have to do a thing.
If you’ve already been audited and need help TODAY, then call us at 614-524-4888!