Getting audited by the IRS can happen to anyone – whether or not they owe back taxes. Taxpayers can be audited through the mail or in person, when IRS agents visit them or they are required to go to the nearest IRS office. In person, audits are more detailed and take more time.
Taxpayers should not ignore a tax audit notice, even if they believe back taxes are not owed. There are choices when facing a tax audit. Taxpayers can handle it by themselves, by using IRS form 8821 which allows a third party to receive relevant information but it does not authorize the third party to represent the taxpayer in front of the IRS. IRS form 2848 authorizes a representative to have power of attorney and deal with the IRS on the behalf of the taxpayer.
It is always best to hire a tax professional, such as an experienced tax attorney, to ease the procedure. Dealing with the IRS is a long and complicated process that requires specific steps and knowledge of available options and procedures. Tax professionals can help reduce the amount owed in back taxes and represent taxpayers every step of the way.
It is important for taxpayers to be straightforward and cooperate with the auditor and audit process. They need to present information that has been requested but should not volunteer any additional information. It is also important to respond in a timely manner, as delaying a response will not make the IRS back off.
Taxpayers who are facing an IRS audit or back taxes should study the Taxpayer Bill of Rights. It is the first step to understanding what is permitted and what is to be expected from the IRS. It contains vital information, such as taxpayers are permitted to file for extensions if they require more time.
If you’ve received an audit notice, need help dealing with the IRS, owe back taxes, or just need advice on the best action to take, call US Tax Shield today at 877-829-3535 or send an inquiry through our website at ustaxshield.com.