The Internal Revenue Service (IRS) is reviewing tax returns and preparing to move forward with audits.
How will I know if the IRS is auditing my business? First, it is important to note that the audit notice will most likely come in the form of a letter. Any phone call from an individual who identifies as an agent of the IRS is highly suspect and likely a scam. Do not provide personal information during one of these calls.
What happens next? The IRS will generally explain how the audit will move forward within the mailing. In some cases, the agency may conduct a field audit. This involves the agent actually going to your business to conduct the audit. This is fairly rare. In most cases, the IRS conducts the audit through continued mailings. This is in part due to the agency’s lack of auditors.
In many cases, software finds a discrepancy within your returns and triggers the mailing. Software is flawed. It is not uncommon for the software used by the IRS to flag a return for an audit due to missed information when the information is present in the return, just in a different spot. As a result, these correspondences can result in a relatively easy resolution.
In other cases, the resolution may not be as clear. Those facing serious tax bills from the IRS are wise to consider their options. You can have your audit notice reviewed by an attorney experienced with tax audits. This legal professional can discuss the best course of action to better ensure your business interests are protected.