How to Get Through a Tax Audit
If you are new to the taxpaying game and have just received a tax audit summons, don’t panic, it could be just a random selection. Read the following post for further details about what this is and why it is necessary, as supplied by Dean Tax Service.
An audit is an investigation into the background of a person’s tax returns. The idea of this creates feelings of anxiety even to those that are sure their tax documents are all in good order. And, while it is true that an audit may be called because of a perceived irregularity in one or more of a person’s returns, it is also true that it is part of a random selection process.
The government uses an agency charged with overseeing tax collections from individuals and businesses within the jurisdiction. However, they will focus more on the processes involved with calculating and paying taxes.
As part of this process, tax agencies will frequently use a policy of randomly selecting auditing returns. Should this be the case, there are usually no punitive measures involved. The taxpayer will need to supply copies of their filed returns for a cited period, in addition to all the supporting documentation, where they will meet with a representative from the tax agency. If all deductions and earnings are backed up with documentation, the matter is considered done.
However, a tax audit can also be performed when the tax agency has reasons to believe some deductions are not allowed or when there has been a deliberate attempt to hide earned income. Again, when this proves to be the case, the government will often call for an audit to clear up any discrepancies. When the taxpayer can provide proof that their initial return was complete and correct, all is well.
In summary, if you would like to learn about our tax audit services and are a resident of Mobile, AL, please do not hesitate to call us at (251) 365-2893 today.