There is little in life more harrowing that receiving notice of a tax audit. Since Uncle Sam has the power to get their money by just about any means necessary, people worry that their lives or businesses may be ruined due to some oversight on their taxes. Fortunately, most audits are relatively simple and don’t result in the ruination of a person’s life. By working with a qualified tax attorney and taking certain steps, you can be sure that your audit goes smoothly and with as little disruption to your life as possible.
Most tax audits are correspondence audits, meaning that is some sort of error or discrepancy with your return or W-2 that the IRS needs to clear up. These audits generally just require a few letters and some amendments on your tax return. While you may owe some money, it is generally not too onerous unless you have failed to report a substantial amount of income.
If you have received notice, however, that your past tax records are being audited, you want to hire a tax attorney or CPA as soon as possible. Because time is of the essence, they can being gather records for you right away and know how to fully prepare for your audit.
The best way to prepare for an audit is to keep accurate records for at least three years. Tax audits can go back three calendar filing years from the date of the audit, so it is important to retain records through that period (if substantial errors are found, the IRS can go back up to six years). If you have not retained records, start requesting information as soon as possible. This might include W-2s, medical bills (if expenses were deducted), certain receipts, and other information pertaining to relevant deductions.
By contacting Burkhalter & Burkhalter immediately after your audit notification, you can be sure that your audit is in experienced, capable hands. To speak with a lawyer about your tax situation in Maryville or anywhere in Tennessee, contact us right away.