TAX AUDIT – DO IT SMOOTH
It is not uncommon for the IRS to conduct a tax audit on a company any uncalled day. The very news that the IRS would be paying a visit can cause undue, unnecessary stress for any individual/ organization. While a tax audit is just routine procedure conducted by the IRS, it has however gained a notorious reputation of being an extremely nerve wracking process for the taxpayer. To make the tax audit process an easy journey, the IRS is and has always made best of its attempt.
What is a tax audit?
A tax audit is an inquiry conducted by the IRS on any individual/ business/ organization with regard to the tax returns presented to the tax agency. The tax audit is done only to find out if a taxpayer paid the correct amount of tax. It is performed to validate the information on your tax return.
Why a tax audit?
In general, a tax audit is conducted by the IRS randomly for no apparent valid reason. Though sometimes it also happens that a tax audit might be carried out due to what may be perceived as irregularities in few of their returns, but there are also cases where the IRS may carry the inquest on a hunch or whims.
If that happens to be the case, there is no reason to worry because there are no disciplinary actions involved. If the taxpayer was summoned because of a random picking, instead of sweating bullets all s/he needs to act calm, meet the tax examiner or auditor and submit copies of the filed returns that have been hinted at. To validate the claims, the taxpayer must also bring along valid proofs in print to authenticate it. If the IRS finds everything in order as such the tax returns have been properly submitted authenticated with validated proof of payment and invoices, then it will be a matter of “open and shut case”. While carrying on the tax audit, the IRS will want to go through your annual financial statements like earnings, income statements, cash flows, balance sheets etc. that validate your information.
On the other hand, the IRS sometimes has a valid proof that there have been discrepancies, an error, a misstatement on the tax return, tax deficiency, intentionally held back the earned income, finds reason to believe deductions are not allowable. If such is the case, a tax audit will be called upon by the IRS and done in great depth. If the auditor of the IRS finds out that there has been inaccuracies on the taxpayer’s part then, the taxpayer may have to pay back taxes as well as pay the interests and penalties incurred due to tax audit.
But if the taxpayer validates that returns was accurate to the T, then the taxpayer won’t be charged. The taxpayer can and does have the right of appeal through the IRS appeals process and, if warranted, to the U.S. Tax Court and even the U.S Supreme Court.
What happens if the IRS finds any kind of discrepancies?
After the completion of tax audit, if the IRS finds out that you are due a refund on account of tax audit or that you have an additional new tax liability with interest and, possibly, penalties on tax audit with proof then the IRS is often open to negotiations with a tax representative or a tax advisor with an agreed payment plan between the IRS and the taxpayer with the help of a tax representative or a tax advisor.
Can I get help?
Of course!! You can get help!!This is where Mike Habib steps in. As your tax representative or a tax advisor, Mike Habib will represnt you at the audit, present your case, and if needed, negotiate a payment plan for taxes on your behalf wherein he will put forward a payment plan between you and the IRS and that you will pay an amount based on your monthly disposable income. With a heart to heart talk with the IRS, Mike Habib will gently and smoothly ease you through the various payments you have owed towards your tax returns.
You surely can trust Mike Habib, for he has guided many a taxpayers as an IRS licensed enrolled agent. With an A+ Better Business Bureau rating as a feather in his cap he has legal know-how to guide you about tax audit. As the founder of the company, you can be certain, he will personally negotiate and bring an agreeable settlement between you and the IRS on your tax audit journey.
Just give him a call 818-649-8552.