How to Handle a Tax Audit
Tax Audit Framingham MA
Individuals and private business entities are required by law to complete their tax returns. Some people and business owners are not aware of their tax obligations, resulting in tax issues and audits. Therefore, it is important to know how to handle a tax audit and why a tax audit representative is essential. Learn more below and contact us today.
What is a tax audit representation?
Tax audit representation, also known as audit defense, refers to any service where tax or legal professionals defend the taxpayer for state or IRS tax audits. The law allows the taxpayer to have legal representation during an income tax verification. The legal representative should be registered and licensed by the IRS to practice within the specified region or state. The representatives are usually CPAs, attorneys, and enrolled agents. The audit representative serves on the interests of the taxpayer during the process. They ensure that all the required paperwork is updated and available, attends meetings, and serves as a link between the taxpayer and the tax authorities.
What is the tax audit process?
Audits occur at random or when suspicious items appear in tax returns, such as unusual deductions or stated income amounts. The state or IRS will notify the individual or entity via letter. The letter usually states that an audit will be conducted on a specific date. Usually, the letter will also require that certain documents be made available for the audit. Depending on the audit, the taxpayer may need to simply submit the documents or formally meet with the auditor. Both of these instances should include a tax audit representative to assure the audit is properly handled.
It is prudent to reply to the letter from the tax authorities promptly. Ignoring the letter is not advisable. If you need extra time, you can ask to extend the date. When called upon to present yourself to the tax authorities, assess whether you need legal representation. Sometimes all is needed is clarity on the information provided in the tax forms. When not sure about what they require from you, it is essential to seek professional advice and guidance for a tax audit representative.
On the completion of the audit, the agent will assess the documents you provided. Next, the results of the case will be discussed. In other words, you may or may not be charged a penalty. If so, you can appeal. Having a competent, qualified, and experienced attorney, agent, or CPAs representative will help during this process.
Learn more about proper tax audit representation with Ash Wasilidas, CPA. He has over 20 years of experience assisting individual and business tax audits. Schedule a complimentary consultation today. Call (617) 462-6651 or book an appointment online. New clients are always welcome!