The Problems You Bear With an IRS Tax Audit

June 23, 2012 by  Filed under: Taxes 

Receiving an IRS Tax Audit
If you find a letter from the IRS requesting a tax audit lurking in your mailbox, it translates into an unwanted invitation. Either the IRS would like you stop by their office, or they can just as easily stop by your house if it seems like you just can’t make the trip. Not only is this stressful, but they also will want a year’s worth or more of tax records at the meeting so it becomes a lot of work as well.

The Costs Associated with an IRS Tax Audit
During an IRS tax audit, considerable time can be taken away from your family and job. This can make the situation tough, as it may be difficult to get time off of work to handle this personal matter. Unfortunately, hiding from an IRS tax audit won’t make the problem disappear as charges such as penalties and interest can reach levels higher than your annual income. It is the auditor’s job to extract more information out of you than what you were required to give in the first place. An auditor is then able to use this information to catch mistakes and errors in your records. Many times people try to handle an IRS tax audit on their own, which often times leads to greater trouble with the IRS. The best route is to hire an IRS Tax Relief Specialist so they can talk to the auditor and provide the only information that is legally required.

The Way an IRS Tax Audit Works
An auditor usually starts off by going through a year’s worth of records and asks for more paperwork if they feel it is necessary. These records can consist of bank statements, alimony, federal and state tax refunds, pensions, receipts and sale of assets. The job of many tax relief companies is to prevent an auditor from expanding past one year of records to impede any additional changes to your records. The reason why an auditor may exceed one year of records is if they continue to see errors in your tax returns that stretch farther than a year. This can result in additional changes and more tax penalties against you. In an effort to prevent this, tax relief companies perform an audit of their own to evaluate your records in advance of the scheduled audit date. This will allow them to find any areas in which your documentation is not accurate and fix it before the IRS catches it.

If you have been sent an IRS tax audit, it is best to find a tax relief company in a timely manner. This allows the company to be given the time necessary to complete their evaluations and provide the best service possible. When you hire a tax relief specialist, it is best to let them handle the communications with the IRS. This lets the IRS know that you are serious about winning the audit, and it also prevents unnecessary conversation between you and the IRS. When you “win” an audit, it actually means that the IRS recognizes it as a no-change audit. A no-change audit is when the IRS accepts your tax return how it was originally submitted and no additional penalty charges are brought against you.

About Franskoviak & Company, P.C.
Franskoviak & Company is a professional Tax Firm that has been successfully helping taxpayers with their tax problems for over 12 years. Our team works hard to successfully and compassionately resolve our clients’ back tax liabilities with both the IRS and State of Michigan. We understand that each taxpayer has a unique situation and may require a variety of services in order to fully meet their needs. For more information or a FREE consultation please visit http://www.IRSTaxProblemSolvers.com.

Article Source:
http://EzineArticles.com/?expert=Jennifer_Weesies

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