Dedicated to providing comprehensive support for taxpayers, Doonan Tax Services offers both return preparation and audit response. Doonan Tax Services stands ready to represent clients in IRS audit proceedings and to help clients prepare for those proceedings.
Although the average risk of a federal tax audit is only 1 percent, they may happen if the IRS believes that it needs to re-examine a taxpayer's return. For the taxpayer, this typically means that the IRS needs to verify the accuracy of income and expenses.
The IRS provides audited individuals with information about which return it is auditing and what information it needs to examine. It also specifies whether the audit will take place by mail or in person. Experts recommend that those facing in-person audits either bring or send tax professionals, as the IRS representative may ask questions that are beyond the average taxpayer's knowledge base.
A professional can also help the taxpayer gather the appropriate documentation, particularly if written evidence on a particular topic is difficult to identify. Copies of original documents are ideal, although a taxpayer may be able to provide a detailed description of the rationale behind a particular figure. For example, if the audit is regarding a taxpayer's business deductions, the taxpayer may be able to present a sample of what his or her business life entails.
Verifiable documentation tends to be best, however, and this may involve reaching out to third parties. Charities may be able to provide written records, though some deductions are more challenging to prove. In such cases, the advice of a representative can be invaluable in helping the taxpayer to make his or her case.
