The worst nightmare that many individuals face during tax season is auditing. Even when professionals work on the tax paperwork for you, it is still possible that you will receive a letter from the IRS. Although that dreaded letter can seem intimidating and worrisome, it is not always the nightmare that you expect.
Take a Deep Breath
Before you panic at seeing the IRS audit letter, take a deep and slow breath. Don’t allow panic to rule your emotions because most cases of auditing are a simple request for more information. Even if you reported all of your income, it is possible that some of the documents that the IRS received from an employer or your investment accounts have gotten a little jumbled.
Read Through the Letter
The first step to solve the problem is reading through the document. Find out what the IRS wants to confirm and gather the appropriate paperwork to disprove or prove your statements. For example, if you filed a deduction for your home, then provide proof of ownership and any other documents that the IRS requests to prove your claim.
In most cases, the IRS audit asks for more information, but is not necessarily saying that you’ve done something wrong. In other cases, it might be related to a mistake on your file or even cases of identity theft where the numbers do not match.
Decide on a Course of Action
Depending on the contents of the letter you receive, the appropriate course of action will vary. For example, if you are asked whether you received interest on your savings account that you forgot to report, then send the documentation showing that you did receive that amount and any adjustments to your tax paperwork to reflect the mistake.
In cases where you owe the government a large sum of money or when you do not know the appropriate course of action, it is best to work with a professional to find the proper solution. It might be that a simple math error caused the problem or you may be facing identity theft that resulted in data that seems inaccurate according to the IRS records. Depending on the situation, the help of professionals who are dedicated to solving IRS problems will make it possible to move forward.
Facing an audit might seem like a nightmare at first, but it is usually a simple problem to handle. When you are not sure about the paperwork or question, contact Advanced Tax Solutions to solve the problem.