What is an IRS Audit?

An IRS audit is a review/examination of an organization's or indiviudal's accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate.

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Why Was I Selected for an IRS Audit?

Having a return selected for audit does not always suggest that an error has been made, but the IRS will often audit returns that contain discrepancies. Filing your tax returns properly will minimize your likelihood of being selected for an audit. If you have been selected for an audit it could have happened for a variety of reasons, including:

  • Random selection
  • Accuracy of Documents/Returns
  • Affiliated/Related Audits
  • If you've been selected for an audit, you will be notified by mail and/or telephone. You will be provided with further documentation as well as next steps.

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    What Happens Once I'm Selected?

    The IRS will inform you of the next steps and any reports or documents that are required to complete the audit. Audits will be conducted via mail or in-person.

    In an audit, the IRS will propose changes to your return. Any proposed changes will be explained to you. The result of an audit will be either:

  • Changes to your return; OR
  • No Changes to your return
  • An audit should be resolved as quickly as possible.

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    How to Get Rid of an Audit

    There are three possible ways to end an audit. You can provide the reports or documents requested by the IRS and the IRS will accept the audited tax return with No Changes. You can AGREE to the proposed changes to your return as well as any consequences the changes may bring. And you can DISAGREE with the proposed changes which will result in an mediation conference or appeal.

    You are required by law to retain records used for a filing a tax return, so you should provide the requested reports or documents to the IRS.

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    What if I'm not Sure What to do?

    USTR recommends that businesses and individuals facing an IRS audit consult a qualified tax professional. How you handle an audit can have a huge affect on your tax liability, and even result in IRS Penalties, Fees, Interest, and Back Taxes.

    Many tax professionals provide a free consultation, which can inform you of the rights and options you have as a taxpayer during an audit. In some cases, you can save thousands of dollars by conlcuding an audit favorably.

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    How do I Know if I Should Contact a Tax Professional?

    USTR believes that contacting a tax resolution professional is common sense. When you have a medical problem, you contact a doctor. When you have a car problem, you contact a mechanic. When you have a tax problem, you should contact a tax professional. Many tax professionals provide a FREE consultation and USTR can connect you with some of the best tax professionals in the country.

    Click Here to Find a Pro