If you get an IRS audit notice, the letter you received has a form number. The Internal Revenue Service (IRS) website contains a ton of information and will explain your audit form in detail. Simply search under the form number and the IRS will provide the necessary information about the audit. Now, if you’re freaking out at this point, then we advice you give a CPA or a tax attorney a call immediately. Setup an appointment and let your CPA or tax attorney explain to you what the tax audit is all about. This will really help you stay calm and focused while you go back and forth with the IRS.

CPA or Attorney?

You might wish an accountant did your taxes. If you worked with a proactive CPA or tax attorney, you’d have help with the audit, possibly get a tax refund through the audit. Both the tax attorney and CPA may be able to find solutions for your problems with the IRS, but only the CPA will help you with future business strategies to lower your taxes and increase your tax credits.

Why are you being audited?

Audits usually occur if the IRS:

• Needs more information
• Questions the amount of your taxes
• Finds an omission or miscalculation
• Decides you are due a larger refund

What services may you need when you get audited by the IRS?

• TurboTax
• Bookkeeping
• Valuations
• Depreciation figures
• Payroll calculations
• Planning for the future
• QuickBooks

Tax Help

No or low cost tax clinics help taxpayers, and the IRS has taxpayer advocates to help you. You can pay by electronic funds transfer, automatic withdrawal, an installment payment plan, credit card or debit card. If your taxes are not paid, the IRS can garnish your wages, put a lien on your property, or attempt to collect your tax debt from your spouse.

IRS Audits

The Internal Revenue Service is not a court of law. Your audit will be conducted within the IRS by IRS employees. The best accountant to accompany you in a tax audit is one who knows federal income tax law, worked for the IRS, knows the audit procedures and is known by the IRS. The tax audit entitles you to remedies otherwise not available to the small business owner or individual.

Do you need to appeal an IRS decision?

If you receive a letter of adjustment from the IRS or an adverse ruling from the IRS, a tax audit is a way to resolve the dispute. You need a representative to win the appeal for you. You need an accountant familiar with all nuances of tax law and IRS agency procedures to win your appeal.

Contact a Proactive CPA

Contact a former IRS Agent and CPA, who reviewed large and small business returns for the IRS. A CPA who works with and for tax lawyers, knows the rights of a taxpayer during an IRS audit. Your CPA can negotiate compromises or payment plans, file back tax returns and petition for innocent spouse relief. You CPA can reduce tax payments through the “Fresh Start Initiative Program” if the tax is an undue burden on you, your small business and your employees.