Recently got a mail from IRS Audits Kearny, New Jersey and you’re not sure what to do next? No worries! You just have to hire a trusted certified public accountant that offers tax services in Kearny, New Jersey.
IRS audit is when the IRS (Internal Revenue Service) evaluates your finances to ensure that everything on your tax return is accurate. Audits are uncommon and its goal is to make sure that you have disclosed everything properly and paid the correct amount of tax. If you’re getting audited, it’s likely that you’ve made a mistake on your tax return. We listed below some tips and ways how to handle your IRS audit.
Handling IRS audit
Understanding the scope of the tax audit
- First and foremost, IRS will always inform you of an audit by sending you a physical letter but never through an email.
- After reading the letter, gather the information or documents that the IRS is requesting, and get ready to answer in-depth questions about your activities and finances.
- If you’re not familiar with IRS procedures, we highly recommend that you hire a licensed tax professional like a licensed CPA to represent you and support your tax return positions before the IRS. There are a lot of CPAs who offer accounting services in Kearny, New Jersey whom you can ask for help.
Preparing your responses to IRS questions
- Prepare a complete response to the items the IRS is questioning in the mail you received.
- Get ready to answer the possible questions from the IRS, such as those concerning unexplained bank deposits or additional income. The IRS agent may also ask about your family, job, and any outside businesses. You’ll need to be prepared to narrate your entire year’s activities.
- If there are no documents to prove any items on your return, you may have to request them from third parties or other records. You can use other techniques such as affidavits if a third party can testify to an undocumented item.
Responding to IRS requests for information or documents on time, and advocating your tax return positions
- The IRS may not agree with you when you tell them that you took a deduction. They might tell you that it wasn’t permitted and that you should have reported more income on your return. If you disagree, present your explanation of the facts and tax law to the IRS.
- The IRS will ultimately close the audit by proposing no changes or suggesting adjustments to your return. You’ll receive a report of the IRS findings and a letter that allows you 30 days to appeal if you do not agree.
Appealing to the appropriate venue if you disagree with the results
- You can request an appeal with the IRS Office of Appeals within 30 days. 30 days after, the IRS will send you a letter called Statutory Notice of Deficiency. This letter closes the tax audit and permits you to petition the Tax Court.
When you receive this kind of mail, it is most important to stay calm, think rationally, and ask for the help of an expert. Get professional tax services in Kearny, NJ from a certified public accountant like Nicholas J. Coco. If you need any of our services, don’t hesitate to contact us now or visit our website at nicholasjcococpas.com.