In recent months, the IRS has cranked up the activity level related to audits. Audits in every sector have increased. You’re not alone if you have received an audit notice or worry about receiving one. The surge in IRS audits has many people and businesses wondering what’s next and how to prepare best. Here’s everything you need to know about the IRS Audit Surge and how Syed Professional Services can help you navigate these complex waters.
What’s Behind the IRS Audit Surge?
The IRS audit surge results from several factors, including increased funding and resources allocated to the agency. Particularly recent government efforts to enhance tax compliance. This is part of a larger strategy to ensure that taxes are paid fairly and that high-income earners or corporations aren’t skirting their tax responsibilities. While the agency has primarily targeted high-earners and giant corporations, individuals and small businesses may also feel the impact.
What To Expect In IRS Audit
An IRS audit is as simple as an audit of a few minor errors on your tax return, or it can be an extensive investigation into your financial life. Here’s an overview of the types of audits you should expect to encounter:
Correspondence Audit: The IRS will mail you a letter asking for clarification or extra documentation relating to an item in your return.
Office Audit: You will be required to visit an IRS office personally to discuss your return and present documents.
Field Audit: The agent visits your residence, office, or business location in person to examine your records.
Red Flags That May Trigger an Audit
While going under audit might feel like bad luck, specific actions might increase your chances of getting flagged by the IRS. Here are just a few common red flags:
Unmatched Information: Divergence between your W-2 and 1099 forms and other reported incomes with the income you report on your tax return.
Significant Deductions: Deductions or business expenses significantly higher than your income or industry standards dictate may call for an audit.
Cash Transactions: People or businesses that show a lot of cash transactions attract more scrutiny, as cash traceability is difficult.
Inappropriate Claims of Dependents:. Misclaiming dependents or inconsistent claims while claiming dependents compared to other tax filers may warrant an audit.
How Syed Professional Services Can Help
Suppose you’re facing an audit or want to be proactive. In that case, Syed Professional Services is here to guide you through every step of the process. Our team of experts specializes in helping individuals and businesses confidently manage and resolve IRS audits. Here’s how we can help you:
Audit Representation: We will act as your representative with the IRS, thus managing all communications to represent your interests.
Document Organization: We’ll help you gather and organize the necessary documentation to ensure you’re fully prepared for any audit.
Tax Strategy Review: We’ll analyze your tax filings to identify areas of concern and help minimize any potential liabilities moving forward.
Settlement and Negotiation: If the audit results in owed taxes. We’ll work to negotiate a fair settlement, including installment plans, penalties, or other options to ease the burden.
Critical Points to Consider for Audit Preparedness
Stay organized. Maintain a record of your income, expenses, and any tax-associated documents.
Be proactive. If you receive an IRS notice, pay attention to it and contact a professional immediately.
Use the services of a tax professional. A tax professional is present on your side with an audit and can reduce the stress of dealing with the IRS.
No one needs to face the IRS audit surge alone. Partner with Syed Professional Services to ensure that you don‘t simply react to an audit but are instead proactively ahead of your tax. Compliance now and for the future.
Contact Us Today
If you have received a notice of audit or are worried about your filing process, you can contact Syed Professional Services. Let us serve you by taking the burden out of tax season with utmost confidence and providing you with precise preparation for the new challenges that come.
