Tax Audit / Tax Examination
If you’ve been notified that your tax return is the subject of an audit or an IRS examination, the first thing to do is not panic. Being the subject of an audit is not an immediate indicator of guilt.
When the tax examination begins, an IRS agent will most likely compare the amount of income you reported to the supporting financial documents you’re provided with your return. If there’s a discrepancy, you will be asked to pay the additional money to compensate for the tax discrepancy. In most situations, tax examinations take place through the mail. If an interview is required, it will most likely take place after the initial review.
Sometimes, an IRS examination is the result of random selection. However, there are “red flags” that can make you more susceptible to an audit, such as three or more years of business losses, rounding of numbers, failing to report taxable income the IRS is aware of, and even typos or math errors. Contact us for a FREE consultation to see if your return may be more susceptible to an IRS audit.
If you’re currently under audit or IRS examination, you need to call us immediately. We can help protect you and your assets during an audit, handle all the correspondence, and handle the negotiations if deemed necessary.
Contact Morris and Associates for a FREE consultation today.