If you are dealing with IRS problems, an IRS audit may be inevitable. Going through an audit can be a daunting experience, and it is important to be prepared. Knowing what to expect and having the right representation can make all the difference.
Clifford, Ross, Raudenbush & Cooper, LLC in El Paso is a full-service accounting and tax firm that has the experience to guide you through an audit. Contact us online or call (915) 593-3330 to learn more about our services.
The Different Types of IRS Audits
An IRS audit is an examination of a taxpayer’s financial records to ensure that they have reported accurate and complete information on their tax returns. There are three main types of IRS audits:
- Correspondence Audits
A correspondence audit is the most common type of audit and involves the IRS requesting additional information or clarification on specific items on a tax return. This type of audit is usually done through mail, and the taxpayer is asked to provide the requested information within a specified timeframe.
- Office Audits
An office audit is conducted in an IRS office, and the taxpayer is required to bring in their financial records and other supporting documents. The IRS will review the records and ask the taxpayer questions about their tax return to ensure that it is accurate and complete.
- Field Audits
A field audit is the most extensive type of audit and involves an IRS agent conducting a thorough examination of the taxpayer’s financial records at their home, business, or accountant’s office. This type of audit is usually reserved for cases where the IRS suspects significant discrepancies or fraud.
How to Prepare for an Audit
Here are some tips on how to prepare for an IRS audit:
- Gather and organize your records: Start by gathering all the documents related to the tax return being audited, including bank statements, receipts, invoices, and other supporting documents.
- Understand the audit process: Before the audit, educate yourself on the type of audit being conducted and the scope of the examination.
- Review and understand your tax return: Go through your tax return and make sure that all the information is accurate and complete.
- Seek professional help: Consider hiring an El Paso tax professional, such as a certified public accountant (CPA) or tax attorney, to represent you during the audit.
- Be prepared for the interview: If you are required to attend an interview, make sure to dress professionally and bring all the necessary documents.
- Keep calm and be patient: An IRS audit can be a long and drawn-out process, but it’s essential to remain calm and patient throughout.
Get Peace of Mind and Professional Support With CRRC During Your IRS Audit
Remember, the key to a successful audit is to be honest, transparent, and professional at all times. Don’t be afraid to seek professional help if you need it, and always respond to requests in a timely and accurate manner.
If you’re facing an IRS audit, our team of tax professionals at Clifford, Ross, Raudenbush & Cooper, LLC in El Paso is here to help. We can guide you through the audit process, negotiate with the IRS on your behalf, and ensure that your rights are protected.