Did You Receive a State or IRS Audit Letter?
Are you picturing a small army of well-dressed tax agents with matching suitcases, earpieces, and clipboards, ready to raid your offices and invade your file cabinets? First off, take a deep breath. IRS audits are exceedingly rare, and when they do happen, most of them occur entirely via mail correspondence.
And when the IRS does want to initiate a meeting? Then don’t forget: This is still America! You have a right to the best representation available. Rush Tax can help to resolve your IRS audit.
The IRS and State will treat you as “guilty until proven innocent”, and worse, they send you notices, often with harsh collection threats and deadlines. Furthermore, they tack on huge amounts of penalties and interest.
Do not get intimidated by an IRS audit letter, and do not let them bully you! Most importantly, you need a strong advocate to help you fight back. Do not call the IRS or State without first seeking proper professional assistance. You must act fast because the IRS and State issue deadlines that need to be met. Call us for a free consultation.
Rush Tax Resolution Fights for your Rights
Our Audit Department may be able to save you thousands of dollars in principle and penalties. IRS audits are usually flagged by an electronic system that checks millions of tax returns every year for potential errors and red flags. The majority of these are simple math mistakes or miscalculations. But sometimes, the IRS will request additional information, or will want documents to prove a suspicious deduction or strange exemption.
Remember – it’s a system with hundreds of millions of participants! It’s easy to make a mistake, and it’s also easy to break the mold. The IRS can be particularly harsh to cash-based businesses, incomes that are much higher than average, and incomes that are much lower than average (especially on years with special tax credits, such as those issued around the pandemic).
If you break any of the IRS’ informal and hidden rules and land yourself on a potential audit list, it’s important to stay calm and remember that documentation is the most important thing. Don’t say too much! In fact, try not to say anything at all. Get in touch with a tax professional and legal representative right away and discuss your options.
Even if your IRS audit is being conducted almost exclusively via mail, it doesn’t hurt to call in a professional. You can quickly land yourself in hot water if you say the wrong thing or follow up too late – a tax professional can ensure that you’re not only minimizing your chances of being investigated by the IRS but can also help you navigate all of the government’s questions when it comes to a proper tax audit.
The worst two people to represent you in an audit, are typically the following:
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- The tax preparer who submitted your return
- Yourself
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During an IRS tax audit, we provide an important buffer between you and them, and we are not put in a defensive position. We fight for you!
Rush Tax Resolution is there for you on offense – laser focused with four main goals:
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- Negotiate a zero change audit whenever possible
- Limit the scope of the IRS tax audit and not allow it to spiral into fishing expedition for endless info and more and more years
- Protect your rights and prevent any collections against any of your assets and/or income sources
- Arrive at best possible resolution afterwards, if any monies are legitimately due
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Know How IRS Audits Work!
Most audits are correspondence audits. These are audits conducted entirely via mail, or with additional phone calls. These are the simplest type of audit, and usually involve nothing more than a request for specific supporting documents to clear up a confusing error or potential misunderstanding.
Once the IRS determines whether your documents support your tax return, they come back to you with an amendment – usually either a decision that you owe them, that they owe you (yes, it happens!), or that no changes are needed.
Sometimes, the IRS will want to dig a little deeper. This is where in-person audits can become a possibility. The IRS will either conduct a field audit or request an in-office interview, where you are required to set an appointment at an IRS field office.
If the IRS wants to meet in person one way or another, it’s important to seek legal representation. In fact, even the IRS recommends this! Working with a tax professional can speed things up for all parties involved and can help you minimize your tax liability by keeping the IRS focused on the scope of their investigation, and nothing else.
Field audits or in-person audits are very rare, but they are more likely for larger companies or high-income individuals. Under certain circumstances, the IRS may interview someone without any suspicion of tax problems in connection with a related tax fraud case, such as a business partner or minor acquaintance. Do not panic! Seek legal representation regardless, and make sure you’re prepared.
Do Not Speak to an IRS or State Auditor Without Representation!
The IRS typically has 3 years to open up and audit inquiry against tax returns that you filed. If the IRS has a reason to expect tax fraud, they may be able to go back further than 3 years. If you did not file, the time clock has not started ticking yet. For this reason, and the fact that the IRS will not send you any refunds back after 3 years, it is important to always file timely.
Keep your documents for the last three years, including major receipts, expenses, proof of income, pay slips, and so on. Proper documentation can help us give you more than a fighting chance against any potential gameplan the IRS might have in store for you and help us keep IRS investigations as short as possible.
Sometimes the IRS asks taxpayers to allow them to extend the 3 year audit look back period. This should not be agreed upon without proper consultation from licensed professionals. We know your rights, and we fight vigorously for you every step of the way.
Call our Audit Department at Rush Tax Resolution today for a free consultation.
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