Getting on Top of a Correspondence Audit
Do you know there is more than one type of audit? A correspondence audit is one that is done entirely through correspondence and not in person.This is the easiest type of audit to go through. A correspondence audit is done by corresponding either through the phone or by mail.
A correspondence audit starts in the form of a notice from the IRS that they require some evidence to substantiate a tax deduction. Usually, the wording of the notice is very plain and non-threatening. If you have proof of your deduction, such as a relevant receipt, just send it to the IRS. Case closed. However, if you are in fear that a more substantial audit could be around the corner or if you are unsure of what to send back to the IRS, you have several options open to you.
Firstly, you should contact the IRS for clarification on what exactly is the situation with you taxes and what type of document they require. On the other hand, if you are hesitant to admit to the IRS that you do not have the evidence they require, then you may need to consult a professional like a tax attorney.
Usually, an IRS correspondence audit is a straightforward matter. All you need to do is furnish the particular proof of payment the IRS is looking for. It is when this kind of audit gets dragged out for months and months with multiple letters flying back and forth that people get nervous. If your tax situation gets that complicated, then it's best to engage a tax attorney. IRS laws can be very confusing and you are at a distinct disadvantage without the advice of a tax professional like an attorney. There is no shame in asking for help when your financial future is at stake.
A correspondence audit need not get beyond merely a letter or phone call but if for some reason it does, you will be asked to meet an IRS agent personally. Alternatively, the agent may pay you a visit at home or at your business place. There is no need to panic if this happens, but it is a good idea to speak with a tax attorney to see what your options are and what the worst case scenario is. The best advice is to be honest about your situation and fulfill all requirements the IRS has for you.
Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.
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