An IRS audit is an in-depth review of every entry on your income, deduction, and credit claims for a particular tax year. There are a number of different reach-back periods the IRS can rely on. If you have not filed a tax return, the IRS can reach back at any time they want and add on (assess) more taxes due for that time period. The general rule is the IRS can audit returns for up to three years after the return is filed. If the IRS finds an understatement of income that equals 25% or more of the originally stated gross income, that opens the door for them to reach back up to six years, looking for more errors. Going into an audit unrepresented can start a snowball effect you can’t get out of. Securing representation before you speak to the IRS concerning an audit notice can save you money and stress.
Going through an audit can be a very intimidating process. The best time to contact Your Tax Relief Team is after you receive the notice of audit, but before you contact the IRS and try to work it out yourself. What is said and done before you have counsel cannot necessarily be undone. Audits can be based on specific line items the IRS sees on your return, or you could have been selected randomly.
Not attending an audit means the IRS examiner will make a determination without your input. If this happens, it is much more difficult to get a positive result. If you retain representation after the IRS after the IRS has gone through the audit process, it takes a higher level of knowledge to find a reason for the IRS to reconsider their initial decision. That’s where Your Tax Relief Team comes in, requesting a reconsideration by the IRS, or filing a petition on your behalf as an appeal to the IRS or directly with the U.S. Tax Court.