You finally have your business under control, and things are taking off. Nothing can stop you! That is, until you get that dreaded audit letter from the Internal Revenue Service (IRS). Even if you believe you have done everything right with your taxes, you may still have to deal with this review. That is why it is critical to understand what these audits can mean for you, your responsibilities regarding these audits, and how you can handle this process.
The Audit Process Starts With the Contact
The IRS will always initially contact you by mail regarding an audit. In the letter, they will indicate the instructions regarding the process and all relevant contact information. The letter may also require further information about items in your tax return, such as your:
- Expenses and other
- Claimed credits
You Provide the Documents
After you receive the audit, you will need to collect the documents the IRS has requested. Yet, make sure only to provide the documents specified. In addition, if you need more time to complete the request, you can mail or fax an extension request to the IRS. The instructions in the audit letter will lay out these guidelines in further detail. However, the IRS usually grants one automatic extension of 30 days.
The IRS Processes the Documentation
After the IRS receives all your files and documentation, they will need time to evaluate your records and process the information. Depending on the complexity of the return and the information requested, it may take up to six months to complete an audit. However, if you disagree with the auditor and pursue an appeal, this can also increase the time it will take to resolve the matter.
The IRS Makes a Decision On Your Audit
Once the IRS concludes its review, it will make a decision, which will include one of the following resolutions:
- No Change. The IRS will make no changes and indicate that nothing further needs to be done to your tax return.
- Change-Agreed. This decision means the IRS proposed changes to your return, and you approve of them. If you owe additional taxes due to these changes, you will have to pay the additional funds.
- Change-Disagreed. Under this scenario, the IRS proposes changes, but you disagree. If this occurs, you may have numerous options available to you, including filing an appeal.
Depending on the complexity of the audit, you may require professional tax help to get you through this process and ensure everything is completed properly and accurately and that you explore all your options when responding to this audit.
Let Ardent Guardian Help You
If you received an audit from the IRS, working with an experienced tax professional can help make sure you are prepared to take on this process. Better yet, when you hire Ardent Guardian, our team can provide you with this assistance, plus so much more. In fact, because our titles include CPA, Certified Financial Planner, and licensed attorney, we are a one-stop shop for all your tax and legal needs.
For further information regarding the audit process or how our team can help you, contact Ardent Guardian today or call us at 703-592-6774 to schedule a meeting with our team.