Accounting and Bookkeeping Services Denver

Tax Audit Help — Denver, Colorado

You’ll never fear a tax audit again with True Resolve on your side

Without a doubt, an IRS audit is the scariest part of the tax-filing process. In fact, audit is one of the most feared words in the English language. It doesn’t help that the situation carries with it an unsettling level of mystery. What if I make a mistake on my taxes? Will the IRS seize my Denver-area property? Will they garnish my wages? Can I go to jail?

What is an IRS Tax Audit?

An IRS tax audit is a review of your business or individual accounts and financial information to ensure your income, credits and deductions were correctly reported on your income tax return based on U.S. tax code.

The biggest thing to remember is that just because you are being audited, it does not mean that the IRS has located an error on your tax return or that you are going to end up owing. Many audits result in no changes to the tax return, and in some cases, the IRS owes the taxpayer money after an audit is completed.

Tax returns are selected for audit using a variety of methods, including:

  • Random selection and computer screening. Sometimes returns are selected based solely on a statistical formula.
  • Document matching. An audit can happen when your W-2 or Form 1099 doesn’t match the information you reported to the IRS.
  • Related examinations. Your tax return can be selected for audit when they involve issues or transactions with other business partners or investors, whose returns are selected for audit.

If you’ve been selected for audit, the IRS will notify you via letter or phone followed by a letter—but never by email. When you receive the letter, this is the best time to contact a representative of True Resolve Tax to get help with your audit.

Often, the first conversation with an auditor is the most important and most revealing into what the audit will be dealing with. It also sets the timeline for the entire audit.

An audit may be conducted by mail or through an in-person interview at an IRS office or taxpayer home, place of business or tax professional’s office. At this time, the IRS will tell you what records are needed.

While the IRS is fairly tight-lipped about its auditing procedures, it is true that audits have risen in the last few years. If you are facing an audit now, there are important steps you must take to be properly prepared. Plus, there are things you can do ahead of time to safeguard yourself or your business against a possible audit and be prepared in the event an audit does occur.

I was facing an audit on my business and my personal taxes by the IRS. The accountant who had prepared my taxes was not answering my calls and a friend of mine told me to contact Amanda Kendall. Amanda was very helpful in helping me understand the process I would be facing and what this would entail as well as how long it would take to complete the audits and get a determination from the IRS. My accountant had made some mistakes and Amanda was quick to point those out and tell me what that would mean for me in the audit. It turned out one of the mistakes was in my favor and almost helped offset the ones that weren’t. By the time the audit was over it was almost exactly what Amanda had prepared me for.

~ Sarah G, Colorado

Knowing Your Rights
It’s important to know your rights when it comes to an audit by the IRS, including:

  • A right to professional and courteous treatment by IRS employees
  • A right to privacy and confidentiality about tax matters
  • A right to know why the IRS is asking for information, how the IRS will use it and what will happen if the requested information is not provided
  • A right to representation, by oneself or an authorized representative
  • A right to appeal disagreements, both within the IRS and before the courts

Not knowing your rights in an audit can result in a completely different outcome. For instance, an audit is geared toward specific items on a tax return, and ensuring that the scope of the audit does not illegally go outside of that scope is very important.

An IRS auditor may also tell you things that are not completely true such as that you can’t claim a deduction without a receipt or canceled check or even that you have no right to challenge the auditor’s decision. Knowing when to invoke your rights and when to sit back and listen in an audit can make all the difference in the outcome.

 

We’ll help you navigate the audit process.
At True Resolve, we have the experience and expertise necessary to safely navigate you through the audit process and to help you avoid an unnecessary audit. Don’t try and tackle complex tax issues on your own. The more mistakes you make the greater your chances of triggering notice by the IRS.