For most business owners and taxpayers, tax season can be a hassle. However, it is rarely regarded with the sense of dread and fear that an IRS audit can bring. Audits can examine years of personal or business finances, uncovering mistakes or expenses you were completely unaware of. Learning more about the IRS tax audit process in Richmond can help you prepare for your appointment and ensure you have the right documentation. Working with a professional tax attorney can further improve your confidence and provide legal guidance to help you overcome unexpected challenges.
A tax audit is a process used by IRS professionals to determine if an individual or business in Richmond paid the correct amount of taxes. During the audit, an IRS agent examines a taxpayer’s financial documents, receipts, invoices, and tax returns from previous years to determine if additional taxes are owed. There are three basic types of audits.
These audits are performed through the mail or by phone. The auditor requests specific paperwork through the mail or arranges a phone call in which they ask questions about the return.
Office audits are performed at a local IRS office and require the taxpayer to meet with an agent at a scheduled appointment time. This type of audit is usually used for businesses or complex tax returns.
The most involved audits are performed at a taxpayer’s home or place of business. Field audits are performed by the most experienced agents, and the process is more detailed and intrusive.
The process of an IRS audit depends on the type of audit a taxpayer in Richmond is required to attend. In any case, the taxpayer will provide essential documents and answer questions asked by the IRS agent.
The taxpayer is notified by mail that their account has been selected for audit. The letter includes instructions about the required documents and details about how the audit will be held. The recipient can dispute the notice by following the instructions and sending supporting documents for the IRS to review when considering the dispute. If the recipient agrees, they will need to respond with the requested actions in the letter. In any case, action will be required by the due date listed in the letter.
For a mail audit, the taxpayer will need to send in specific documents. A confirmation can be requested to ensure the documents were received.
Office audits and field audits require taxpayers to participate in a meeting where they provide information and answer questions. Professional representation is recommended at these more involved audits.
Knowing what to expect during the Richmond IRS tax audit process is one way to prepare for your scheduled appointment. Professional assistance can offer an added sense of security and vital legal guidance. While an IRS audit can be an intimidating experience, it is important to remember you have rights. You can choose when your meeting occurs, and you have the right to have professional representation. A tax lawyer understands intricate tax codes to determine that you are compliant and aware of any potential mistakes. Our attorney could guide you through the process and advocate for your rights for a fair outcome with minimal penalties for honest mistakes. Contact us today to schedule your confidential consultation.