From the Tax Law Offices of David W. Klasing - How to Prepare if You Think You Might Be Audited by the IRS

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Tax Law Offices of David W. Klasing, PC

Jun 23, 2020, 06:37 ET

IRVINE, Calif., June 23, 2020 /PRNewswire/ -- Sometimes, there will be warning signs that an audit is coming, which will give you a chance to prepare.

Why you should use an Attorney to represent you in an audit

Sometimes, a math error, miscalculation, or something else in the returns that does not add up could lead to an audit. Other situations that often lead to an audit include reporting a lot more income that you had in previous years, losing, or forgetting to file a form, or claiming an unusually large number of deductions or claiming credits you are not entitled too. Furthermore, taxpayers with undisclosed overseas bank accounts and unreported offshore taxable income tend to be audited at an increasingly higher rate.

If you are in a high-risk group for being audited, or if you are afraid your return, whether intentionally or unintentionally, may contain false or misleading information, there are concrete steps you can take to give yourself the best chance of getting through this process and painlessly as possible.

One of the best things you can do to prepare for an audit is to organize your records by tax year as well as type of income or expense. The more well-organized your records are, the easier it will be for you to quickly provide the auditor with whatever type of information they are requesting. This will speed up the process and demonstrate to the auditor that you are on top of things.

If, in reviewing your individual and entity returns, you notice some minor mathematical errors or other inadvertent mistakes, there is a way you can amend your return(s) using a form known as 1040x. Although penalties can still apply, the agents might be less inclined to penalize you for an honest mistake that you corrected yourself. However, you should never amend your returns after being notified you are under audit before consulting with an experienced tax attorney like those at The Tax Law Offices of David W. Klasing. We can advise you on whether you are exposing yourself to potential criminal or civil liability, and if amending is really the wisest move to protect net worth and your liberty.

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Public Contact: Dave Klasing Esq. M.S.-Tax CPA, [email protected]

SOURCE Tax Law Offices of David W. Klasing, PC