Audit Strategies IRS – Killer IRS Tax Solutions
Audit Strategies IRS – Don’t Meet At Taxpayer’s House
Don’t let the auditor meet you at your home. You do not want them to look around and take inventory. Audits should take place in the IRS office or your tax advisors office. That’s another reason to hire a CPA firm. We have had many business audits conducted at our office. This avoids the auditor going to the business in most cases.
Extend The Audit Or Not
If you need more time to prove your case, then extend the audit. If you are anxious to close the case, then don’t agree and request the auditor issue the audit report. If you put too much pressure on the auditor, then they may charge you with more tax liability than you were hoping for. It’s a judgment call requiring experience but when used is on of the best steps in Audit Strategies IRS.
Just The Facts and Only The Facts
Stories with facts open up more areas to be questioned. Taxpayers require coaching to determine when to speak and what to say. Many cases are now being transferred to the criminal investigation division by auditors. It’s pretty scary. Always wait a few seconds before answering. This gives your advisor a chance to chime in, or you a chance to change your knee jerk response.
Don’t Fight Each Adjustment
When the auditor is about to make an adjustment against you, don’t fight it. Give your best evidence and arguments. If still not in agreement, then just agree that you will review it later on. Let the auditor feel comfortable doing their job. Once the report is issued, you usually have 30 days to produce additional evidence to change it. You can also speak to the manager. You have the right to file an audit appeal.
Don’t File A Sch C For Your Business
One of the best Audit Strategies IRS I know is to incorporate your sole proprietor business. Most business audits by far are Sch C audits. Take your business off your personal 1040 return.The above Audit Strategies IRS are only some of many. Audit representation by an experience, licensed CPA firm is a must. Don’t go at it alone.