Due to the global pandemic COVID-19, tax filing dates have been delayed three months. Although the deadline is now July 15, 2020, it doesn't mean the IRS has ceased operations or stopped auditing taxpayers.
A tax auditis a review of accounts and financial information to ensure the information is correctly reported according to the tax laws. Here is a brief overview of who can be audited, how the process works, and why you will need professional assistance to overcome this unexpected challenge.
Who Can Be Audited?
Even if you filed your return as thoroughly and accurately as possible, it is still possible to be examined by the government. Individuals, organizations, and businesses can be audited, and most people are surprised when they receive notice that they are being audited. An audit is not always an indication of a problem.
The IRS often randomly selects individuals and entities to audit. You may stand out to the IRS during its computer screening process, however, for several different reasons.
Your tax return may send red flags to the IRS if you claimed an excessive number of:
- Charitable donations
- Home office deductions
- Business expenses
- Round numbers ($100, $1,000, etc.)
The IRS may also audit you if your return did not include additional income or accurate calculations. If you are selected for an audit (either randomly or otherwise), the IRS will notify you by mail.
How Does the Audit Process Work?
To review your record, the IRS audits by mail or through in-person interviews. If you are audited in person, it may take place at an IRS office or as a field visit at your residence, place of business, or lawyer or accountant’s office. If the IRS asks you to provide records, send copies—never original documents.
Examples of possible records you may need include:
- Canceled checks
- Legal papers
- Loan agreements
- Logs or diaries
- Medical/dental records
- Theft or loss documents
- Employment documents
Do You Need a Lawyer?
During an audit, having your financial records organized properly will allow you to efficiently and accurately answer questions. Because you may run into complications along the way, retaining skilled legal counsel can significantly impact the result of the audit. An experienced lawyer can help you adequately prepare for the audit and manage the stress of the entire process.
Don’t hesitate to take action during an uncertain time like this. Our team of professionals is ready to do everything we can for you during your IRS audit. Our goal is to ensure this matter is resolved as swiftly and favorably as possible.
If you're facing a tax audit, we can answer your questions, help you understand the process, and help you navigate complex legalities. Contact us online to learn more or call (321) 320-6088 to schedule your consultation with our team.