If you or your Overland Park tax accountant have recently finished filing your tax returns, congratulations, you won’t have to worry about taxes for another year! That is unless you have been selected to be audited by the IRS.
If you are one of the “lucky” ones chosen for an audit, Pro 31 Tax and Accounting has some advice on how to handle this process. Pro 31 is based in Louisburg, but specializes in tax preparation in Overland Park, and has the experience you need to help make the audit process as smooth as possible for you and the IRS. This article will discuss different areas of the audit process, such as:
- Being Contacted by the IRS
- Types of Audits
- After the Audit
- Keeping Records
Being Contacted by the IRS
If the IRS reaches out to you, the first thing you should do is take a deep breath and do not panic. An audit does not mean that you have done anything wrong. Reach out to your Overland Park tax accountant or CPA and notify them that you are being audited and have a professional assist you in the process.
Many times, people are selected for an audit if their tax return looks vastly different from someone in a similar situation. According to Overland Park tax preparation specialists, other reasons for an individual being audited include questionable home office deductions, business use of a vehicle, or using foreign currency/bank accounts.
Types of Audits
The three types of audits you may encounter are:
- Correspondence (Mail) Audit – typically routine errors or missing paperwork, can be corrected through the mail
- Office Examination Audit – you would meet with the IRS at a local branch and discuss potential missing income
- Field Audit – the most extensive audit, the IRS will visit your home or business to do a thorough evaluation
If you are being audited, you will be contacted via mail or telephone. Overland Park tax accountants suggest that you be aware of email scams claiming to be from the IRS, as the IRS will not contact you for an audit via email. You will have 30 days to respond to an audit notice, so begin gathering all the documentation the IRS needs and make extra copies to submit for your audit.
After the Audit
Once the audit is complete, you will receive a computer-generated report that outlines the additional taxes you owe, if any. You have the option to appeal if you disagree with the findings; if you choose to go this route, we suggest contacting your Overland Park CPA or accountant for more detailed instructions.
The IRS has the right to conduct an audit for up to three years after your taxes are filed. Be sure to keep all documentation from your previous tax returns for a minimum of three years. Many accounting firms in Overland Park suggest keeping your records for seven years just to be safe.
If you want the ultimate protection from an IRS audit, contact the Louisburg-based Overland Park tax preparation specialists, Pro 31 Tax and Accounting. Each of our staff members has over ten years of accounting experience and dealing with the IRS. Give our Louisburg office a call today at (913) 837-3131, so we can assist you with all your tax and accounting needs.