IRS audits are conducted to see if the organization’s financial records, books, etc., are in the right place and whether all the information is correctly provided. If they find any discrepancies in the information provided about their business, then legal actions and hefty fines can be made. Both small businesses and large enterprises in Campbell and Santa Cruz have to adhere to rules and regulations.
Every state has its own laws that need to be followed to ensure that the records are accurately provided. When a tax return is filed, that is when all the information regarding the business is provided, you need to ensure that you are providing accurate information. Furthermore, taxes should be accurately calculated as well.
Once the IRS sends the notice, the process is going to be really long. You will have to deal with the entire process, which is not easy. Professionals can make things easier for you. Hire them for tax preparation services in Campbell and Santa Cruz. They can help you navigate through the complexities with ease and give you insight at every step.
What can be the reason for being selected for the audit?
If you are being selected for an audit, it does not necessarily mean that there is something wrong with your business. Sometimes, an audit is conducted to be on the safer side and as a part of regular checking. Let us look at different selection methods for audit:
Examinations:
When there are some transactions involved with other taxpayers, you can be selected for an audit. It can be an investor in your business, a partner in your business, etc.
Computer screening:
There is a statistical formula that is sometimes used for selection. A program is used by the IRS to update any information regarding return selection. The tax return is also compared with the norms.
What does conducting an audit involve?
An interview can be conducted in person or through email. It is done to have a look at your records. The interview can be conducted at your home or at the IRS office. At the very beginning of the process, you will be conducted through an email.
The letter that you will get from the IRS will have all the information regarding the contacts, and any instructions will also be included. If the audit is being conducted through email, the auditors will likely ask for some information regarding your expenses or deductions that are there on your tax return.
You need to make sure that you provide all the information accurately and make no mistakes at this point. If you think the information is too much to be enclosed in an email, then you can request an in-person audit.
The letter will have all the instructions and information regarding the process. Depending upon the issue that is present in your particular situation, the auditors will use a specific auditing technique.
What information do you need to provide?
A written request will be provided by the IRS, and they will enlist all the required documents. They might also accept electronic records in addition to other types of records. You will have to contact your auditor to ensure what is allowed and what is not.
All the records that were provided during the tax return need to be kept by you for at least 3 years from when you filed it. This is a law that needs to be strictly followed.
Streamline your IRS audit with a professional!
Having a professional on your side during the process can be really beneficial for you. They will help you gather the proper documents and provide everything accurately without a mistake. They will also guide you at every step of the audit process and make sure that everything goes smoothly.
Thus, hire an accountant in Campbell and ensure accuracy in your business records. They can also take care of your tax related matters and other related issues.
