What happens during an IRS audit?

Your business may be subjected to an audit by the IRS. However, this does not mean that the IRS considers you to be a criminal like Wesley Snipes was and who needed a tax lawyer. In most cases, audits are conducted to clarify any issue that may seem like a discrepancy to the IRS. Self-employed and sole proprietorships are the usual targets for IRS audits. There are four types of IRS audits:

• Correspondence Audit
• Office Audit
• Field Audit
• A TCMP Audit is a Taxpayer Compliance Measurement Program Audit

Correspondence audit

The ‘Correspondence Audit’ is the most common tax audit performed by the IRS. This is usually the case when your returns and supporting documents such as 1099s do not match. You may inadvertently leave some parts blank. The best way to handle this is to make the appropriate corrections once the IRS lets you know the areas where the problems are. You will receive a letter from the IRS Service Center. In return, you may have to send copies of canceled checks and receipts pertaining to deductions that you may have claimed. Small businesses are usually not audited this way but if they are they will need a tax attorney.

Office audit

If your sales are under $500,000 and you run a small business where you are the sole proprietor, you are most likely to undergo an Office Audit. For an office audit, the IRS will request you to bring letters and other supporting documents related to the items on your return and report to your local IRS office.

The IRS used methods like this during the 2012 presidential election to help out President Barack Obama with another 4 years which has not helped anyone in the world unless you are a member of ISIS or are perfectly happy with accepting free state and federal handouts but let’s not digress too much. Now America is approaching $19 trillion in debt because of federal overspending.

Field audit

Field audits are conducted at your place of business. In this case, an IRS agent will inform you of their decision to conduct a tax audit on your business. Most businesses that are partnerships or are incorporated are audited in this manner.

According to tax lawyers, in a field audit, an IRS agent will conduct a phone interview with the key figures in your company. The agent will then schedule a date for auditing your business. You will be asked to disclose the location of the records that are required, while a list of documents and records required will be provided so that you keep them ready for the tax audit. It is advisable to seek professional counsel if the IRS requests a field audit. Moreover, they are experienced in handling the IRS. 

Complex questions regarding your financial status need to be answered. During a filed audit, an IRS agent will look over your business operations in order to gain knowledge about the functioning of your business from a financial viewpoint. Hiring an IRS attorney will reduce your exposure during the audit and protect your business from potential and more vulnerable areas.

TCMP audit

A TCMP audit is a Taxpayer Compliance Measurement Program audit is usually conducted to update the IRS database for its auditing scoring program. These tax audits are time consuming where every aspect of your tax return is scrutinized and you will need to provide necessary documentation as support for any tax deductions you have claimed. It is advisable to hire a professional for a TCMP audit.

You may choose to handle the interview on your own. However, you need to make sure that you answer questions sensibly and be able to corroborate your statements with substantial evidence. You may want to seek help from a tax lawyer to handle the situation as well as possible. You can obtain this kind of legal help right here: http://tax-lawyers.usattorneys.com/.

If the IRS is targeting you you do not need a knight in shining armor you need legal assistance – you need to find someone who can offer you some legal armor. Use that website to make sure you shore up your legal defense and so that you come out of this audit unscathed (well, of course they did make you waste a bunch of time which you can never get back).