During an annual tax filing season the Internal Revenue Service (IRS) receives an enormous amount of information from every citizen filing taxes. They analyze the data collected and depending on the amounts owed and received, either get or distribute funds for the preceding calendar year. While there is a reporting deadline, options do exist for those who may not be able to file on time, although if they owe then payment remains due by the specified date. Either way, if you file on time or via an extension, the IRS can still select you for the possibility of an audit.

The word itself often invokes fear into business owners or individuals but there are varying degrees of audit responsibility. Some involve only correspondence via a letter, potentially due to a simple mathematical error, yet others include an IRS agent visiting your home or place of business, and even a line-by-line analysis of your return may be executed. 

PROBLEM

Reasons behind auditing a tax return are directly associated with the ways people try to cheat on their taxes. Although many discrepancies may be the result of “honest mistakes,” others effectively attempt to navigate the tax laws and arrange the filing of their return in such a method to benefit them in the best ways possible.

By failing to report earned income, especially when receiving cash, or paying for services in the same manner, many hope to reduce their true earnings which effectively lowers the amount of taxes owed. Other red flags include excessive deductions, donations, or applying phony credits. 

AUDIT SOLUTION

The IRS Audit System is designed to effectively eliminate these types of actions and limit both individuals and businesses from being able to cheat on their responsibility. By implementing random screenings and double-checking all of the received information, a general analysis can typically be quickly determined if obvious discrepancies exist.

VERDICT

If you have been selected for an audit, locating professional assistance should be your first line of defense. While the reasoning for a closer look at your tax return may be a simple mathematical error or accidental reporting, the failure of everyone to effectively file has given cause for the audits to take place.

Once you have determined the extent to which the IRS is going to evaluate your return, getting the help needed is critical. Professionals have been through the audit process and are trained to assist in the best way possible while actively working on your behalf at onset and throughout the entire process. Depending on the style of audit you have been chosen for this process could last anywhere from a few weeks, to months, or even years down the line.

The tax experts at Bloch Rothman and Associates are ready and willing to assist with all of your questions and filing needs, including help with an IRS initiated audit. Serving Denver and the surrounding area for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us today. Available for all of your tax needs and filings there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!