IRS Audit representation, Cordero CPA will help you in Miami and Orlando, Florida
IRS AUDIT REPRESENTATION
Cordero, CPA, PA
In order to determine whether you have reported your deduction and expenses and other items correctly, the IRS may audit your income or business tax. Their representatives are trained to extract more information than you need to disclose during your audit and the information they get from you will help them increase your tax liability, which often can lead to more tax years being audited. They have the power to ask you to show documentation for every item on your tax return, including expense receipts, invoices, and other items you may not have access to. The biggest reason people receive letters from the IRS is addition or subtraction errors which rarely leads to a full audit but double-check your math anyway before you send in your return. A sloppy return is most likely to get a thorough check by the IRS, especially if the important numbers are illegible.
If the IRS examines one of your returns, the examination will usually take place through the mail. The IRS uses correspondence audits to take care of the most common tax return problems, such as mathematical errors, missing forms and schedules, and illegible entries. You must return the audit notice along with any documentation and explanations the IRS has requested. The requested documentation might include: home mortgage statements, tax returns, pay stubs, receipts, brokerage statements, and retirement account.
In a field audit, the examiner visits your home or business to verify the information on your tax return.
In an office audit, you must go to an examiner’s office. The examiner requires you or your representative — such as your tax preparer or lawyer — to bring documentation and information such as receipts, pay stubs, or account statements. At the end of the audit, the examiner will mail you or give you a 30-day letter which consists of a copy of the examination report, an explanation of how the IRS wants to change your tax return to reflect the report’s findings, an explanation of your right to appeal and a publication called “Your Appeal Rights and How To Prepare a Protest If You Don’t Agree.” You have 30 days to respond, so if you’re not sure about the IRS’s findings and you want to consult a tax professional, don’t rush to sign the examination report. If, within 30 days, you find the IRS is correct, indicate you agree and sign the examination report. If you do not agree, however, you can appeal the findings before the 30 days is up. An appeal, handled by an IRS Appeals Officer, can take a year or longer. Following the appeal, the IRS sends a 90-day letter, which gives you 90 days to request an escalation to Tax Court, in case you don’t agree with the Appeals Officer’s findings. Most audits are resolved long before Tax Court comes into the picture.
Cordero, CPA, PA can represent you through your audit, you don’t need to attend. Our specialists will handle your entire audit for you. When and if the IRS returns and they believe there is something wrong with a claimed item, they may request more documentation and information. When the IRS decides to audit you they send you a Notice of Audit. You then have 30 days to respond to their notice, along with a list of documents, and the revenue officer assigned to your case. Most audits are won by the IRS because the taxpayer failed to respond, or provide the documents required.
Contact us today for a free audit evaluation. Cordero, CPA, PA, a bi-lingual firm, are here to answer all of your questions and concerns. We are based in Miami and Orlando, FL and are here to assist you. Give us a call at 305-599-4111 in Miami or 407-931-0002 in Orlando.