Nothing strikes fear into the hearts of Americans more than the dreaded letter that you’ve been chosen to participate in a tax audit. The good news is that audits are typically directed at large businesses. The IRS audits approximately 1% of the population making under $200,000 per year.
If you should receive that letter, however you want to have a strong partner by your side. Terrence Bartell is a Certified Public Accountant who has been in the business of helping clients with tax services in Denver for over thirty years. Whether you’re an individual or a business receiving an audit, Terrance has the knowledge and skills to guide you through the process from start to finish. You may even find that with a capable partner by your side, it’s not as terrifying as it first appears.
The Audit Process
If you do happen to receive an audit letter in the mail, the first thing to do is to contact your tax professional, and the IRS agent assigned to the case to arrange a meeting. It’s the taxpayer’s responsibility to prove that the tax return being audited is accurate and complete.
The IRS is generally looking for four things during an audit:
- Proof of income – your IRS agent will want to see proper documentation
- Information from previous audits if applicable
- Penalties – your IRS agent will request to see records of previous penalties paid in order to determine if penalties will be assessed during the audit
- Other tax returns – your agent may ask to see tax return from previous years
You will also be asked a number of questions during the audit process and it’s important to remember to be as cooperative as possible in order to help the process proceed as smoothly as possible.
Some Things to Consider
The first thing to remember is that a tax audit is not the end of your world. The more accommodating and cooperative you are with your IRS agent, the quicker and more efficient the process will be.
Keeping organized and accessible financial records will be extremely helpful you if you should ever face a tax audit. It will save you time and stress if you don’t have to actively search for all the required documentation for your audit.
Building a relationship with a tax professional can be your greatest asset if you’re ever audited. When you work with a CPA like Terrence Bartell, he’ll already know and understand your tax history and he’ll have access to your records and financial information. He’ll be able to answer any questions that the IRS has so that your audit can be resolved in a timely manner, with little stress for you.
Consider Terrance Bartell for all of your tax preparation needs so if you should ever need tax resolution services in Denver, you’ll rest at ease knowing that you have a partner that will back you up.