Learning that you have been selected by the IRS or by a state taxing authority for a tax audit can be understandably stressful. During a tax audit, a well-trained government employee will probe your financial affairs by examining your tax returns and other financial documents for any evidence of tax underreporting, overstated deductions and even tax evasion. Small businesses and self-employed individuals are targeted for tax audits more frequently than other taxpayers. Once selected for an audit, the likelihood that you will be found to owe tax as well as possible penalties and interest at the end of the audit process is very high. An auditor may also determine that you are guilty of tax fraud, which in addition to civil fines, may subject you to criminal penalties. Therefore, it is critical that you be well-prepared to handle the examination process.
In order to conduct a tax audit, a government agent may visit you at home or at your business. You may also be asked to appear at a local IRS or state government office. In a correspondence audit, you will be contacted through the mail and will be asked to send supporting information or documents to the IRS or to the state taxing agency.
Skillful representation is crucial for achieving favorable results before, during, and after a tax audit. If you have been selected for a state or IRS audit, contact The Wilson Firm to learn how we can help you during the examination process.